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AENTW

NEUTRAL
$0.67 Live
Alliance Entertainment Holding Corporation · NASDAQ
$0.67 52W Range $0.74

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AI Analysis

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Confidence
72%
AENTW's Piotroski F-Score of 4/9 indicates weak financial health, falling into the 'Weak' range despite some positive profitability signals. The absence of an Altman Z-Score raises concern about default risk, particularly given a Debt/Equity ratio of 0.91 and a quick ratio of 0.75. While ROE (20.53%) and operating margin (4.64%) are respectable, the company faces declining revenue (YoY -6.3%) and lacks a Graham Number or intrinsic value estimate, limiting valuation clarity. The stock trades near its 52-week low at $0.67, with no analyst coverage and minimal insider activity, suggesting low market interest.

Key Strengths

ROE of 20.53% indicates efficient use of equity capital
Operating margin of 4.64% reflects decent operational efficiency
Positive earnings growth of 29.7% YoY and 32.8% Q/Q suggest improving profitability
Price/Book of 0.29 suggests potential undervaluation on book value
Insider sentiment at 40/100 indicates modest confidence from insiders

Key Risks

Piotroski F-Score of 4/9 signals weak financial health and potential distress
No Altman Z-Score available, raising unquantified bankruptcy risk
Negative revenue growth of -6.3% YoY indicates shrinking top line
Lack of analyst coverage and target prices limits market visibility
Technical trend at 0/100 indicates strong bearish momentum

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