NasdaqGM:ALJJ

Stock Analysis Report

Executive Summary

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.

Rewards

Trading at 66.5% below its fair value

Risk Analysis

Earnings have declined by -52.51% per year over past 5 years

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($47M)



Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has ALJ Regional Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALJJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

ALJJ

2.1%

US IT

1.5%

US Market


1 Year Return

-39.8%

ALJJ

37.2%

US IT

20.1%

US Market

Return vs Industry: ALJJ underperformed the US IT industry which returned 37.2% over the past year.

Return vs Market: ALJJ underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ALJJIndustryMarket
7 Day-2.6%2.1%1.5%
30 Day-3.0%4.4%1.4%
90 Day0%13.9%8.7%
1 Year-39.8%-39.8%38.6%37.2%22.7%20.1%
3 Year-70.7%-70.7%112.3%103.1%50.1%40.5%
5 Year-74.0%-74.0%148.0%125.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is ALJ Regional Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ALJ Regional Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALJJ ($1.12) is trading below our estimate of fair value ($3.34)

Significantly Below Fair Value: ALJJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALJJ is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: ALJJ is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALJJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALJJ is good value based on its PB Ratio (0.6x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is ALJ Regional Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ALJ Regional Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ALJ Regional Holdings performed over the past 5 years?

-52.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALJJ is currently unprofitable.

Growing Profit Margin: ALJJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALJJ is unprofitable, and losses have increased over the past 5 years at a rate of -52.5% per year.

Accelerating Growth: Unable to compare ALJJ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALJJ is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).


Return on Equity

High ROE: ALJJ has a negative Return on Equity (-25.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ALJ Regional Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ALJJ's short term assets ($59.4M) exceed its short term liabilities ($46.3M).

Long Term Liabilities: ALJJ's short term assets ($59.4M) do not cover its long term liabilities ($101.8M).


Debt to Equity History and Analysis

Debt Level: ALJJ's debt to equity ratio (110.8%) is considered high.

Reducing Debt: ALJJ's debt to equity ratio has increased from 42.5% to 110.8% over the past 5 years.


Balance Sheet

Inventory Level: ALJJ has a high level of physical assets or inventory.

Debt Coverage by Assets: ALJJ's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ALJJ has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ALJJ has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is ALJ Regional Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ALJJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ALJJ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALJJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALJJ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALJJ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Jess Ravich (62yo)

0.6yrs

Tenure

US$236,136

Compensation

Mr. Jess Marshall Ravich, J.D. serves as Group Managing Director and Head of Alternative Products at Trust Company of the West, an international asset management firm, a position he assumed in December 201 ...


CEO Compensation Analysis

Compensation vs Market: Jess's total compensation ($USD236.14K) is below average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Jess's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jess Ravich
CEO & Executive Chairman0.6yrsUS$236.14k34.39% $16.2m
Brian Hartman
Chief Financial Officer2.5yrsUS$626.00kno data
Anna Van Buren
Director and President & CEO of Faneuil6.3yrsUS$1.14m3.72% $1.8m
Steven Chesin
President & CEO of Carpets0yrsUS$334.04k0.36% $168.0k
Steve Czirjak
Chief Financial Officer of Faneuil0yrsno datano data
Alden Eldredge
Senior VP of Administration & General Counsel of Faneuil3.8yrsno datano data
Brian Keck
Chief Financial Officer of Phoenix Color4.5yrsno datano data
Kevin Hayden
Chief Operating Officer of Phoenix Color4.6yrsno datano data
Bradd Robison
Chief Operations Officer of Carpets2.8yrsno datano data
Jeff Wiens
Chief Financial Officer of Carpets0.3yrsno datano data

3.3yrs

Average Tenure

59yo

Average Age

Experienced Management: ALJJ's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jess Ravich
CEO & Executive Chairman0.6yrsUS$236.14k34.39% $16.2m
Anna Van Buren
Director and President & CEO of Faneuil6.3yrsUS$1.14m3.72% $1.8m
Marc Reisch
Chairman of Phoenix Color Corp.4.5yrsUS$280.00k1.19% $560.0k
Hal Byer
Independent Director17.1yrsUS$84.00k0.073% $34.4k
Robert Fritz
Independent Director17.1yrsUS$85.00k1.53% $724.9k
John Scheel
Independent Vice Chairman of the Board3.2yrsUS$92.50k2.1% $991.3k
Michael Borofsky
Independent Director6.4yrsUS$95.00k0.18% $82.8k
Rae Ravich
Director5.7yrsUS$80.00k0.15% $71.9k

6.3yrs

Average Tenure

62yo

Average Age

Experienced Board: ALJJ's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.1%.


Top Shareholders

Company Information

ALJ Regional Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ALJ Regional Holdings, Inc.
  • Ticker: ALJJ
  • Exchange: NasdaqGM
  • Founded: 1995
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$47.234m
  • Shares outstanding: 42.17m
  • Website: https://www.aljregionalholdings.com

Number of Employees


Location

  • ALJ Regional Holdings, Inc.
  • 244 Madison Avenue
  • PMB Suite 358
  • New York
  • New York
  • 10016
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALJJNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 1996

Biography

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, granite, quartz, piedrafina, 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:17
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.