Alliance Laundry Holdings Inc. (ALH)
Valuation Overview•Is Alliance Laundry Holdings Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 50/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
ALH demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 18.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $426.9M | +13.3% | — | — | — | |
| EBITDA | $105.1M | — | — | — | — | |
| Net Income | $56.9M | +3.5% | — | — | — | |
| EPS (Diluted) | $0.28 | -1.9% | — | — | — | |
| Free Cash Flow | $74.7M | +55.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 37.2% | 34.2% | 34.2% | 34.2% |
| Operating Margin | 18.4% | 18.4% | 18.4% | 18.4% |
| Net Margin | 7.8% | 6.3% | 6.3% | 6.3% |
| FCF Margin | 12.6% | 9.6% | 9.6% | 9.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.26 | $0.31 | +19.2% | ||
| Q1'26 | $0.22 | $0.24 | +9.1% | ||
| Q4'25 | $0.23 | $0.28 | +24.4% |
Total return is +8.3% (1Y), lagging the benchmark by -16.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +25.7% | +16.4% | — |
| 1Y | +8.3% | -16.7% | — |
| 3YCAGR | +2.7% | -18.0% | — |
| 5YCAGR | +1.6% | -11.6% | — |
| 10YCAGR | +0.8% | -13.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Alliance Laundry Holdings Inc. (ALH) valuation, health, and returns.
Alliance Laundry Holdings Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $24.88)
Alliance Laundry Holdings Inc. has multiple valuation anchors: DCF Intrinsic Value: $24.88 | Peer Relative Fair Value: $20.52 | Wall Street Analyst Target: $32.00 (implying +19.0% upside). A convergence of these signals offers higher conviction.
Alliance Laundry Holdings Inc. displays fair financial health with a composite quality score of 50/100, supported by a Altman Z-Score of 1.2 (distress zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 10.8%.
Alliance Laundry Holdings Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Alliance Laundry Holdings Inc.'s current growth trajectory is Stable. The company achieved +13.3% 1Y revenue growth and -1.9% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 3 analysts. The consensus price target represents a +19.0% change from current levels.
Investment risks for Alliance Laundry Holdings Inc. include: -29.2% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.26x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.