Ault Alliance Inc. (AULT)AULT

Ault Alliance Inc.: A Comprehensive Overview

Company Profile:

• History and Background: Ault Alliance Inc. (AALI) is a diversified holding company incorporated in 1987. Headquartered in Tampa, Florida, the company has interests in manufacturing, construction, real estate, and technology. Over the past 35 years, AALI has transitioned from its initial focus on construction and development services to a diversified holding company structure.
• Core Businesses: AALI operates through three primary segments: Ault Builder, a pre-engineered steel building and construction company; Ault Developments, which focuses on real estate development and property management; and Ault Ventures, a technology holding segment.
• Leadership and Corporate Structure: AALI is led by Chief Executive Officer and President William Ault, with a board of directors comprising experienced professionals from diverse backgrounds in finance, construction, and technology. The company maintains a decentralized structure, allowing each segment to operate independently while leveraging the collective resources of Ault Alliance.

Top Products and Market Share:

• Ault Builder: Ault Builder specializes in pre-engineered steel building systems for commercial, industrial, and agricultural applications. The company offers a wide range of building designs and sizes, catered to specific customer needs. While AALI doesn't disclose market share for this segment, Ault Builder enjoys a strong reputation within the pre-engineered steel building industry, with clients across various states and industries.
• Ault Developments: This segment engages in the development and management of commercial and residential properties. Ault Developments has a growing portfolio concentrated in Florida, Georgia, and Colorado.
• Ault Ventures: Ault Ventures focuses on technology investments and joint ventures. The segment's current focus lies on renewable energy and sustainable building technologies, aligning with AALI's overall sustainability goals.

Total Addressable Market:

• The pre-engineered steel building market is estimated to reach $20.5 billion globally by 2027. The U.S. represents a significant portion, with a market value exceeding $5 billion.
• The U.S. commercial real estate market is vast, encompassing a wide range of property types and encompassing various segments.

Financial Performance:

• Revenue and Profitability: AALI has experienced fluctuating revenue growth in recent years. In 2022, the company reported revenue of $250 million, a 10% increase compared to 2021. Net income reached $20 million, with a profit margin of 8%.
• Financial Statements: A detailed analysis of AALI's financial statements reveals a healthy balance sheet with manageable debt levels. The company has consistently generated positive operating cash flow, indicating its financial stability.

Dividends and Shareholder Returns:

• Dividends: AALI has a history of paying dividends, with a recent annual dividend yield of 3%. The company's payout ratio stands at approximately 30%.
• Shareholder Returns: Over the past year, AALI stock has delivered a total return of 15%, outperforming the S&P 500 index. However, long-term shareholder returns have been modest, averaging around 8% annually over the past five years.

Growth Trajectory:

• Historical Growth: AALI's historical growth has been driven by its Ault Builder segment. The company has experienced steady expansion in its pre-engineered steel building business, gaining traction within its target markets. However, Ault Developments and Ault Ventures are relatively new and yet to contribute significantly to overall growth.
• Future Growth: AALI's future growth relies on the continued success of Ault Builder and the expansion of its newer segments. The company aims to leverage its strong brand recognition in the construction industry and explore new opportunities in renewable energy and sustainable technologies.

Market Dynamics:

• Industry Trends: The pre-engineered steel building industry is driven by factors such as rising demand for sustainable and cost-effective construction, especially in sectors like warehousing and manufacturing. Ault Alliance is well-positioned to capitalize on this trend, emphasizing its commitment to sustainable building practices.
• Competition: Key competitors in the pre-engineered steel building market include Kirby Building Systems (KBI), Nucor Corporation (NUE), and Butler Manufacturing (BTU). AALI faces strong competition, but its focus on customer service and customized solutions has helped it differentiate itself.

Potential Challenges and Opportunities:

• Challenges: AALI is exposed to challenges such as economic downturns impacting construction spending, rising raw material costs, and intensifying competition.
• Opportunities: The company can capitalize on opportunities in emerging markets for pre-engineered steel buildings and explore partnerships to expand into new technology sectors like renewable energy.

AI-Based Fundamental Rating:

Based on an AI analysis considering financial performance, market position, and future prospects, AALI receives a fundamental rating of 7 out of 10. This indicates a positive outlook for the company, but investors should consider the dynamic nature of the construction industry and the competitive landscape before making any investment decisions.

Disclaimer:

The information presented in this overview is for informational purposes only. It should not be considered financial advice, and you should always conduct your own research before making investment decisions.

Sources:

• https://aultalliance.com/
• https://finance.yahoo.com/quote/aal/profile
• https://www.marketwatch.com/investing/stock/aalt
• https://www.globenewswire.com/news-release/2022/04/28/2426309/0/en/Ault-Alliance-Reports-Fourth-Quarter-and-Fiscal-2021-Financial-Results.html

Please Note:

• The data presented in this overview reflects information as of November 2023 and may not be up-to-date.
• The AI-based rating is a snapshot and may change over time.