ALJ Regional Holdings, Inc. (ALJJ): Price and Financial Metrics

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ALJJ Price/Volume Stats

ALJ Regional Holdings, Inc. (ALJJ) Company Bio

ALJ Regional Holdings, Inc. provides call center, back-office, staffing, and toll collection services to government and commercial clients in the healthcare, utility, consumer goods, toll, and transportation industries in the United States. It operates through three segments: Faneuil, Carpets, and Phoenix. The Faneuil segment offers customer contact centers, fulfillment operations, and information technology services, as well as manual and electronic toll collection, violation processing, and medical device tracking services. This segment also provides customer relationship management; billing, payment, and claims processing; data entry; document management; operational expertise; workforce and support analytics; quality assurance; and system support and maintenance services. The Carpets segment engages in the retail of floor coverings, including carpets, hardwood, laminates, tiles, ceramic, porcelain, natural stone, vinyl planks and tiles, and area rugs, as well as specialty flooring comprising bamboo, leather, cork, and large format tiles to home builders, and commercial and retail customers. This segment also offers countertop and surrounds, such as granite, solid surface, quartz, and piedrafina primarily for bathrooms and kitchens; kitchen, bathroom, and garage cabinets; closet and closet organizers; and window coverings comprising blinds, shutters, and shades, as well as stone and solid surface fabrication services. The Phoenix segment manufactures book components; educational materials and related products; heavily illustrated books; and specialty commercial products. This segment also provides label, printing, and packaging solutions for the beauty, fragrance, and cosmetic and consumer-packaged goods markets. The company was formerly known as YouthStream Media Networks, Inc. and changed its name to ALJ Regional Holdings, Inc. in October 2006. ALJ Regional Holdings, Inc. was founded in 1995 and is based in New York, New York.

ALJJ Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for Alj Regional Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alj Regional Holdings Inc ranked in the 37th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 51.5%. The most interesting components of our discounted cash flow analysis for Alj Regional Holdings Inc ended up being:

• The company's balance sheet shows it gets 29% of its capital from equity, and 71% of its capital from debt. Notably, its equity weight is greater than just 4.42% of US equities in the Industrials sector yielding a positive free cash flow.
• Its compound free cash flow growth rate, as measured over the past 4.14 years, is -0.01% -- higher than merely 21.25% of stocks in our DCF forecasting set.
• Alj Regional Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.38. This coverage rate is greater than that of only 11.65% of stocks we're observing for the purpose of forecasting via discounted cash flows.

For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ALJJ, try GNRC, AEGN, AGCO, B, and FAST.