Alliance Entertainment Holding Corporation Class A Common Stock (AENT)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look first at business quality. Alliance Entertainment distributes and retails physical entertainment and collectibles—vinyl records, video games, discs, toys, and licensed merchandise. In fiscal year 2026, the year ended 2026-06-30, revenue was about $1.1B and net income was $13.1M, or $0.26 diluted EPS. That is a razor-thin margin. In fiscal year 2025, the year ended 2025-06-30, net income was $15.1M, or $0.30 diluted EPS, so fiscal 2026 profit actually declined. In fiscal year 2024, the year ended 2024-06-30, net income was $4.6M, or $0.09 diluted EPS. The Lynch category is TURNAROUND—returned to profit after a loss within three years—which fits a business still proving itself. I see no durable competitive moat. Distributing physical media and collectibles is competitive, low-margin, and exposed to shifting consumer habits. FairStock calculates ROE of 11.88% and ROCE of 5.90%, but D/E is 0.80; trailing free cash flow is -$2.8M; Piotroski is 3/9 and Altman Z-Score is 1.57, both signs of fragility. The latest quarterly snapshot was unprofitable. At the 2026-10-13 close of $4.53, market cap is $231.2M. FairStock calculates P/E 17.42, P/B 1.98, PEG 0.70, EV/EBITDA 10.18, and a Graham Number of $3.66, giving a negative margin of safety of 23.77%. FairStock score is 61/100. A beta of 0.43 and a price near the 52-week low of $4.31 may attract contrarians, but I want cash generation and stronger balance-sheet scores before calling it a bargain.

In plain English: Alliance Entertainment distributes and sells physical entertainment and collectibles, including vinyl records, video games, DVDs, Blu-rays, toys, and licensed merchandise. The company is profitable on a full-year basis but earns thin margins, and the latest quarterly snapshot was unprofitable, so the financial picture is mixed. At $4.53 on 2026-10-13, the stock looks full rather than cheap based on its modest profits and a conservative asset-based estimate; it is not a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer