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Alliance Entertainment HoldingAENT -0.39%60 Gross Margin % is 12.79% as of Mar. 2026, which is 1% above its 10-year median of 12.68. GuruFocus rates AENT with a GF Score™ of 60/100 and a GF Value™ of $3.08 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 944 Media - Diversified companies, Alliance Entertainment Holding ranks worse than 84.85% on this metric.
Alliance Entertainment Holding (NAS:AENT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alliance Entertainment Holding had a gross margin of 12.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alliance Entertainment Holding Gross Margin % Related Terms
Alliance Entertainment Holding Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alliance Entertainment Holding Gross Margin % Chart
AENT vs PLAY, AASP, STRZ: Gross Margin % Comparison
For the Entertainment subindustry, Alliance Entertainment Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alliance Entertainment Holding Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Alliance Entertainment Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alliance Entertainment Holding's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alliance Entertainment Holding (AENT) has a Gross Margin % of 12.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alliance Entertainment Holding and its competitors. This is near median its historical median of 12.68. Over the past decade, Alliance Entertainment Holding's Gross Margin % has ranged from 8.97 to 15.36. According to the industry distribution chart, Alliance Entertainment Holding ranks #801 out of 944 companies in the Media - Diversified industry, placing it in the top 84.9%.
Is Alliance Entertainment Holding's Gross Margin % too high?
Alliance Entertainment Holding's current Gross Margin % of 12.79% is near median its 10-year median of 12.68. Over the past 10 years, this metric has ranged from a low of 8.97 to a high of 15.36. The Media - Diversified industry median Gross Margin % is 39.17. Alliance Entertainment Holding's value of 12.79% is 67.3% below this industry median. Based on the distribution chart, Alliance Entertainment Holding ranks #801 out of 944 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Alliance Entertainment Holding has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alliance Entertainment Holding's Gross Margin % compare to PLAY and AASP?
According to the Media - Diversified industry distribution chart, Alliance Entertainment Holding ranks #801 out of 944 companies for Gross Margin %. This places Alliance Entertainment Holding in the lower half of its industry. The industry median Gross Margin % is 39.17. Alliance Entertainment Holding's value of 12.79% is 67.3% below this benchmark. Historically, Alliance Entertainment Holding's own Gross Margin % has ranged from 8.97 to 15.36 over the past decade. While the company's 10-year median is 12.68 vs. the industry median of 39.17, Alliance Entertainment Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 39.17, based on 944 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alliance Entertainment Holding's current Gross Margin % of 12.79% is 67.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alliance Entertainment Holding and its competitors. For the Media - Diversified industry, the median Gross Margin % is 39.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alliance Entertainment Holding's current Gross Margin % is 12.79%, which is near median its own 10-year median of 12.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alliance Entertainment Holding stock overvalued right now?
Based on GuruFocus' analysis, Alliance Entertainment Holding (AENT) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.08, compared to a current price of $5.13 — trading 66.6% above its estimated fair value. The current Gross Margin % is 12.79%, which is near median its 10-year median of 12.68 and 67.3% below the Media - Diversified industry median of 39.17. Alliance Entertainment Holding's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alliance Entertainment Holding (AENT), the current Gross Margin % is 12.79% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alliance Entertainment Holding (AENT) Overvalued in 2026?
Based on GuruFocus' analysis, Alliance Entertainment Holding stock appears to be overvalued.
The current stock price of $5.13 is trading 66.6% above its estimated GF Value™ of $3.08.
GuruFocus considers Alliance Entertainment Holding to be Significantly Overvalued.
Key valuation signals for AENT:
Gross Margin %: 12.79% (near median its 10-year median of 12.68)
GF Value™: $3.08 vs. price of $5.13 (66.6% above fair value)
Industry Position: 67.3% below the Media - Diversified median (#801 of 944)
No single metric tells the full story. See the AENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alliance Entertainment Holding Corp is a distributor of music, movies, and consumer electronics. It offers products consisting of vinyl records, compact discs, DVDs, Blu-rays, and video games. The company serves customers of every size, providing a suite of services to resellers and retailers around the world. The company has two divisions: Alliance Home Entertainment, which offers full-service support across production, marketing, and retail execution. and Alliance Authentic, which focuses on licensed collectibles and branded merchandise, including partnerships with Handmade by Robots, Master Replicas, and Weta Workshop.
60GF Score
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