AENT

Alliance Entertainment

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Communication Services

industry

Entertainment

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/21/26

Business Summary

Alliance Entertainment operates as a large-scale distributor and wholesaler within the entertainment ecosystem, monetizing physical and related media products through logistics scale and supplier relationships. The core engine is margin capture between content suppliers and retail channels, where purchasing power and distribution efficiency determine profitability. Its moat is operational rather than intellectual: scale, inventory management, and long-standing retailer relationships create switching costs and volume advantages. Cash generation depends on disciplined working capital management, maintaining margin spread, and leveraging infrastructure to push high throughput at controlled cost.

 


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VALUATION

P/E

16.1

Market Cap ($M USD)

$352

Forward P/E

14.7

PEG

-

PRICE TO SALES

0.3

PRICE TO BOOK

3

EV / EBITDA

10

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.43

Next Year EPS Growth Estimate

$0.47

Next Year Revenue Growth Estimate

1.70%

Return on Equity (ROE)

18.60%

FREE CASH FLOW

Operating Margin

4.00%

Debt-to-Equity

0.9

Piotroski F-Score

5

Altman Z-Score

3.9

Return on Invested Capital (ROIC)

14.50%

Current Ratio

1.4

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 16.1x earnings and 14.7x forward earnings, AENT screens as a statistically cheap small-cap in Communication Services, especially with a 3.9 Altman Z-Score signaling low near-term bankruptcy risk. A 0.3 Price/Sales ratio is deep value territory, yet the modest 1.70% ROE suggests equity capital is not being maximally leveraged. The market appears to be pricing this as a low-growth distributor rather than a compounder, and the absence of a PEG figure reinforces uncertainty around growth durability. Still, with a forward multiple below the trailing P/E and solid balance sheet safety metrics, this looks more mispriced than distressed. The valuation implies skepticism, but the financial stability argues against existential risk.

AI Exposure / Tech Reliance

As an Entertainment company within Communication Services, AENT operates in a segment increasingly influenced by digital distribution, data analytics, and AI-driven demand forecasting. The ability to optimize inventory, predict consumer demand, and streamline logistics through automation will be central to maintaining its 18.60% operating margin. Companies in this space that fail to integrate tech into supply chain and distribution workflows risk margin compression over time.

The Bull Case

A value-oriented investor buys this because the numbers scream operating efficiency relative to price. A 14.50% ROIC materially exceeds the 1.70% ROE, implying the core business generates respectable returns on invested capital even if equity returns are muted. The 18.60% operating margin is robust for a distribution-heavy entertainment model, and the 0.3 Price/Sales ratio offers significant multiple expansion potential if growth stabilizes. A Piotroski F-Score of 5 indicates financial conditions are stable rather than deteriorating, and the 3.9 Altman Z-Score reinforces balance sheet durability. With a forward P/E of 14.7 and positive projected EPS next year of $0.43, this is a classic GARP setup: reasonable growth at a compressed valuation with limited solvency risk.

The Bear Case

The red flags are not subtle. A 4.00% Debt/Equity ratio indicates reliance on leverage, which becomes dangerous in cyclical demand environments. The lack of a PEG ratio removes visibility into growth-adjusted valuation, and the weak 1.70% ROE signals inefficient equity utilization. Sales Growth Next Year listed at $0.47 provides little clarity on trajectory, and institutional ownership at $9.00 offers limited evidence of strong smart-money conviction. Add in a thin 0.9 yield with no meaningful dividend history, and shareholders are not being compensated to wait if growth stalls.

Market Sentiment & Smart Money

Short Interest %

12.10%

Analyst Consensus

2

Average Analyst Price Target

$9.00

Institutional Ownership %

48.10%

1-Year Beta

0.87

Insider Buying % (6 Mo)

94.00%%

Distance to 52-Week High

78.60%

Distance to 52-Week Low

311.80%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.