Albany International: Not As Expensive As It Looks

Summary

• Albany’s sales are finally back to where they were prior to the pandemic.
• Given its current earnings multiple, Albany’s stock looks expensive when considering financial trends from the past decade.
• However, if more recent trends continue, I believe Albany’s equity could trade higher. I come to this conclusion with a SOTP valuation using 2024 EBITDA estimates for the two segments.
• Despite being slightly undervalued with my estimate, I am initiating coverage with a hold rating as I believe there are better small-cap opportunities available.