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Allient Inc. (NASDAQ:ALNT) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?
Allient Inc. (NASDAQ:ALNT) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?

Yahoo

time13-07-2025

  • Business
  • Yahoo

Allient Inc. (NASDAQ:ALNT) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?

Allient's (NASDAQ:ALNT) stock is up by a considerable 82% over the past three months. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Allient's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Allient is: 3.6% = US$9.8m ÷ US$273m (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.04 in profit. See our latest analysis for Allient We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. It is hard to argue that Allient's ROE is much good in and of itself. Even compared to the average industry ROE of 11%, the company's ROE is quite dismal. As a result, Allient's flat earnings over the past five years doesn't come as a surprise given its lower ROE. We then compared Allient's net income growth with the industry and found that the average industry growth rate was 13% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Allient's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Allient's low three-year median payout ratio of 9.9%, (meaning the company retains90% of profits) should mean that the company is retaining most of its earnings and consequently, should see higher growth than it has reported. Moreover, Allient has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. In total, we're a bit ambivalent about Allient's performance. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

1 Cash-Producing Stock with Competitive Advantages and 2 to Keep Off Your Radar
1 Cash-Producing Stock with Competitive Advantages and 2 to Keep Off Your Radar

Yahoo

time16-05-2025

  • Business
  • Yahoo

1 Cash-Producing Stock with Competitive Advantages and 2 to Keep Off Your Radar

While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 7.5% Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems. Why Is ALNT Risky? Annual sales declines of 1.7% for the past two years show its products and services struggled to connect with the market during this cycle Projected sales growth of 3.7% for the next 12 months suggests sluggish demand Earnings per share decreased by more than its revenue over the last two years, partly because it diluted shareholders Allient's stock price of $33 implies a valuation ratio of 17.2x forward P/E. To fully understand why you should be careful with ALNT, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: 1.5% Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management. Why Are We Cautious About WCC? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Earnings per share have dipped by 15.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term Free cash flow margin shrank by 3.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive WESCO is trading at $171.24 per share, or 12.1x forward P/E. Read our free research report to see why you should think twice about including WCC in your portfolio, it's free. Trailing 12-Month Free Cash Flow Margin: 14.4% Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods. Why Is LII Interesting? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient Earnings per share grew by 24.3% annually over the last two years and trumped its peers Industry-leading 50.4% return on capital demonstrates management's skill in finding high-return investments At $594.22 per share, Lennox trades at 25x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio

Allient: Q1 Earnings Snapshot
Allient: Q1 Earnings Snapshot

Yahoo

time08-05-2025

  • Business
  • Yahoo

Allient: Q1 Earnings Snapshot

AMHERST, N.Y. (AP) — AMHERST, N.Y. (AP) — Allient Inc. (ALNT) on Wednesday reported first-quarter profit of $3.6 million. On a per-share basis, the Amherst, New York-based company said it had profit of 21 cents. Earnings, adjusted for amortization costs and restructuring costs, came to 46 cents per share. The motion control product maker posted revenue of $132.8 million in the period. Allient shares have dropped nearly 9% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $22.12, a fall of 30% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ALNT at

1 Stock Under $50 with Solid Fundamentals and 2 to Keep Off Your Radar
1 Stock Under $50 with Solid Fundamentals and 2 to Keep Off Your Radar

Yahoo

time02-05-2025

  • Business
  • Yahoo

1 Stock Under $50 with Solid Fundamentals and 2 to Keep Off Your Radar

Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market. This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with huge potential and two best left ignored. Share Price: $21.63 Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems. Why Should You Dump ALNT? Annual revenue growth of 2.6% over the last two years was below our standards for the industrials sector Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew Allient is trading at $21.63 per share, or 11.9x forward P/E. Check out our free in-depth research report to learn more about why ALNT doesn't pass our bar. Share Price: $49.60 With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases. Why Are We Cautious About BMY? Sizable revenue base leads to growth challenges as its 1.9% annual revenue increases over the last two years fell short of other healthcare companies Sales are projected to tank by 4.4% over the next 12 months as demand evaporates Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Bristol-Myers Squibb's stock price of $49.60 implies a valuation ratio of 7.5x forward P/E. Dive into our free research report to see why there are better opportunities than BMY. Share Price: $31.93 Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns. Why Do We Like BRZE? Customers view its software as mission-critical to their operations as its ARR has averaged 26.8% growth over the last year High switching costs and customer loyalty are evident in its net revenue retention rate of 114% Operating margin improvement of 10.1 percentage points over the last year demonstrates its ability to scale efficiently At $31.93 per share, Braze trades at 4.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio

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