Alliance Laundry Holdings Inc. Common Stock (ALH)
StalwartFairStock Score: 31/100 — RISKY
Key Financials
| Current Price | $23.83 |
| Market Cap | $4.9B |
| P/E Ratio | 33.56 |
| ROE | 185.11% |
| Dividend Yield | —% |
| Sector | Consumer Cyclical |
Strengths
- Generates $136 million in annual free cash flow (2.8% yield on market cap)
- High return on equity of 177.3% demonstrating efficient capital deployment
Concerns
- Trades significantly above Graham Number ($5) with negative 395% margin of safety—limited downside protection
- High leverage at 5.09x debt-to-equity increases financial risk and interest expense burden
- Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Alliance Laundry Holdings Inc. Common Stock is a small-cap consumer cyclical company valued at $4.9 billion. The business generates $1.7 billion in annual revenue with a 1.2% net margin and $136 million in free cash flow. From a quality standpoint, Alliance shows distressed Altman Z-Score of 1.4 warrants caution and extraordinary 177% return on equity. On valuation, the stock is commanding a steep 43.8x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 10.1% and profit growth of -44.4%. Our composite FairStock Score of 31/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $136 million in annual free cash flow (2.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 44x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer