Alliance Laundry Holdings Inc.
Alliance Laundry Holdings Inc. Fundamental Analysis
Alliance Laundry Holdings Inc. (ALH) shows weak financial fundamentals with a PE ratio of 41.58, profit margin of 5.95%, and ROE of -4.18%. The company generates $1.5B in annual revenue with strong year-over-year growth of 10.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -395.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALH's fundamental strength across five key dimensions:
Efficiency Score
WeakALH struggles to generate sufficient returns from assets.
Valuation Score
WeakALH trades at a premium to fair value.
Growth Score
ExcellentALH delivers strong and consistent growth momentum.
Financial Health Score
ModerateALH shows balanced financial health with some risks.
Profitability Score
WeakALH struggles to sustain strong margins.
Key Financial Metrics
Is ALH Expensive or Cheap?
P/E Ratio
ALH trades at 41.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALH's PEG of 22.45 indicates potential overvaluation.
Price to Book
The market values Alliance Laundry Holdings Inc. at 10.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.49 times EBITDA. This is generally considered low.
How Well Does ALH Make Money?
Net Profit Margin
For every $100 in sales, Alliance Laundry Holdings Inc. keeps $5.95 as profit after all expenses.
Operating Margin
Core operations generate 18.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.18 in profit for every $100 of shareholder equity.
ROA
Alliance Laundry Holdings Inc. generates $3.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alliance Laundry Holdings Inc. produces operating cash flow of $183.48M, showing steady but balanced cash generation.
Free Cash Flow
Alliance Laundry Holdings Inc. produces free cash flow of $136.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.80 in free cash annually.
FCF Yield
ALH converts 4.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
22.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-4.18
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How ALH Stacks Against Its Sector Peers
| Metric | ALH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.58 | 23.72 | Worse (Expensive) |
| ROE | -418.34% | 1091.00% | Weak |
| Net Margin | 5.95% | -627.00% (disorted) | Weak |
| Debt/Equity | 5.09 | 0.72 | Weak (High Leverage) |
| Current Ratio | 1.40 | 2.64 | Neutral |
| ROA | 3.53% | 1053.00% | Weak |
ALH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alliance Laundry Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.47%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
0.34%
Industry Style: Cyclical, Growth, Discretionary
GrowingFCF CAGR
40.82%
Industry Style: Cyclical, Growth, Discretionary
High Growth