ALJ Regional Holdings

Ticker
$ALJJ
Industry
Conglomerate
Type
Divestiture
Rating
Covered
Category
General
Target Price
$3.25
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ALJ is a holding company run by significant shareholder (45%+ ownership) Jess Ravich. The company acts more like a merchant bank buying and selling entire companies. Formerly owned a steel producer, sold that business and invested in printing, flooring retail, and call-center / outsourcing services. In 2022, the company is on the divestiture side again.

Notes

ALJ selling off assets in a major way (2022)

Historically, ALJ has been a FCF generator with inconsistency — acquisitions didn’t lead to growth in cash flow and debt caught up to them
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Disaggregation of Faneuil revenue — selling health & transportation verticals; retaining all others
FY21 revenue disaggregation
FY21 revenue disaggregation
4Q21 revenue disaggreation
4Q21 revenue disaggreation

Financials & Valuation

💡
FY21 Valuation — 54m shares outstanding x $2 share price = $108m market cap. Net cash after the Faneuil divestiture could be ~$40m and then another $135m from the Phoenix Color sale would be $170-175m depending on cash generation, taxes, etc. It’s likely there is $3+ in per share cash on hand with a few small pieces of the Faneuil business remaining.

Resources

Research

ALJ Regional Holdings ($ALJJ) — Initiation (1/15/22)
ALJ Regional Holdings ($ALJJ) — Merger Proxy Notes (3/20/22)