Allient Inc (NASDAQ: ALNT)

Sector: Technology Industry: Electronic Components CIK: 0000046129
Market Cap 910.91 Mn
P/B 14.25
P/E 59.60
P/S 3.74
ROIC (Qtr) 5.79
Div Yield % 0.15
Rev 1y % (Qtr) 10.81
Total Debt (Qtr) 207.73 Mn
Debt/Equity (Qtr) 0.71
Add ratio to table...

About

Allient Inc., trading under the ticker symbol ALNT, is a global player in the industrial automation and motion control industry. The company's operations span across various segments, including Motion Control, Industrial, Medical, and Aerospace and Defense. Allient's primary business activities involve the design and manufacture of precision and specialty controlled motion components and systems. These include motors, drives, and encoders, which are integral to a broad spectrum of industries. The company's offerings are designed to provide high...

Read more

Investment thesis

Bull case

  • Operating cash flow of 55.51M provides strong 16.54x coverage of stock compensation 3.35M, indicating sustainable incentive practices.
  • Robust free cash flow of 47.64M exceeds capital expenditure of 7.87M by 6.05x, indicating strong organic growth funding capability.
  • Tangible assets of 359.64M provide robust 9.15x coverage of other current liabilities 39.30M, indicating strong asset backing.
  • Operating cash flow of 55.51M provides solid 0.76x coverage of current liabilities 73.03M, showing strong operational health.
  • Operating cash flow of 55.51M fully covers other non-current liabilities 10.15M by 5.47x, showing strong long-term stability.

Bear case

  • Operating cash flow of 55.51M barely covers its investment activities of (7.87M), with a coverage ratio of -7.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 55.51M provides thin coverage of dividend payments of (1.98M) with a -28.08 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (7.87M) provide weak support for R&D spending of 38.53M, which is -0.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 37.64M show weak coverage of depreciation charges of 25.75M, with a 1.46 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 47.64M represents just -1.13x of debt issuance (42.30M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Electronic Components
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APH Amphenol Corp /De/ 180.75 Bn 42.33 7.83 15.50 Bn
2 GLW Corning Inc /Ny 111.40 Bn 69.80 7.13 8.43 Bn
3 TEL TE Connectivity plc 69.66 Bn 33.75 3.85 5.71 Bn
4 CLS Celestica Inc 33.17 Bn 47.38 2.94 0.78 Bn
5 JBL Jabil Inc 27.80 Bn 39.54 0.89 3.37 Bn
6 FLEX Flex Ltd. 24.18 Bn 28.38 0.90 5.02 Bn
7 FN Fabrinet 17.82 Bn 47.27 4.58 0.06 Bn
8 TTMI Ttm Technologies Inc 9.30 Bn 70.47 3.34 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.66 3.02
EV to Cash from Ops. EV/CFO 37.33 -590.38
EV to Debt EV to Debt 4.68 107.94
EV to EBIT EV/EBIT 37.61 20.68
EV to EBITDA EV/EBITDA 29.78 -27.60
EV to Free Cash Flow [EV/FCF] EV/FCF 45.30 -537.03
EV to Market Cap EV to Market Cap 1.07 -1.14
EV to Revenue EV/Rev 4.00 96.65
Price to Book Value [P/B] P/B 14.25 6.99
Price to Earnings [P/E] P/E 59.60 -8.83
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 9.44 1.07
Dividend Payout Ratio % Div Payout % (Qtr) 10.60 20.91
Dividend per Basic Share Div per Share (Qtr) 0.12 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 4.21 10.42
Interest Coverage Int. cover (Qtr) 2.75 14.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 26.14 -43.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 6.35 125.88
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 13.24 -176.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.11 14.38
EBIT Growth (1y) % EBIT 1y % (Qtr) 24.68 15.28
EBT Growth (1y) % EBT 1y % (Qtr) 41.72 7.50
EPS Growth (1y) % EPS 1y % (Qtr) 26.97 2.30
FCF Growth (1y) % FCF 1y % (Qtr) 29.78 9.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.15 15.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.91 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.03 0.05
Cash Ratio Cash Ratio (Qtr) 0.54 1.48
Current Ratio Curr Ratio (Qtr) 3.53 3.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.71 0.68
Interest Cover Ratio Int Coverage (Qtr) 2.75 14.05
Times Interest Earned Times Interest Earned (Qtr) 2.75 14.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.90 21.48
EBIT Margin % EBIT Margin % (Qtr) 7.06 -42.60
EBT Margin % EBT Margin % (Qtr) 4.49 -10.39
Gross Margin % Gross Margin % (Qtr) 32.60 31.37
Net Profit Margin % Net Margin % (Qtr) 3.50 -11.50