ALIGNMENT HEALTHCARE INC (ALHC) Stock Fundamental Analysis
USA - NASDAQ:ALHC - US01625V1044 - Common Stock
16.52 USD
-0.25 (-1.49%)
16.52 USD
0 (0%)
ALHC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. While ALHC seems to be doing ok healthwise, there are quite some concerns on its profitability. ALHC is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
ALHC had negative earnings in the past year.
In the past year ALHC had a positive cash flow from operations.
In the past 5 years ALHC always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: ALHC reported negative operating cash flow in multiple years.
1.2 Ratios
ALHC has a Return On Assets (-1.89%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -12.86%, ALHC is doing worse than 62.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.40%, ALHC is doing worse than 61.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.89% | ||
| ROE | -12.86% | ||
| ROIC | 0.4% |
ROA(3y)-21.65%
ROA(5y)-20.54%
ROE(3y)-95.11%
ROE(5y)-84.8%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALHC has a Operating Margin of 0.07%. This is in the lower half of the industry: ALHC underperforms 61.00% of its industry peers.
ALHC has a Gross Margin of 12.42%. This is in the lower half of the industry: ALHC underperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of ALHC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.07% | ||
| PM (TTM) | N/A | ||
| GM | 12.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.14%
GM growth 5Y-2.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALHC is destroying value.
ALHC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALHC has been increased compared to 5 years ago.
The debt/assets ratio for ALHC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.53 indicates that ALHC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.53, ALHC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ALHC has a debt to FCF ratio of 2.14. This is a good value and a sign of high solvency as ALHC would need 2.14 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.14, ALHC belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
A Debt/Equity ratio of 1.99 is on the high side and indicates that ALHC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.99, ALHC is doing worse than 75.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for ALHC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.04
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.61 indicates that ALHC should not have too much problems paying its short term obligations.
ALHC's Current ratio of 1.61 is in line compared to the rest of the industry. ALHC outperforms 59.00% of its industry peers.
A Quick Ratio of 1.61 indicates that ALHC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.61, ALHC is doing good in the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
ALHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.71%, which is quite impressive.
Looking at the last year, ALHC shows a very strong growth in Revenue. The Revenue has grown by 47.39%.
The Revenue has been growing by 28.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)85.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.29%
Revenue 1Y (TTM)47.39%
Revenue growth 3Y32.29%
Revenue growth 5Y28.99%
Sales Q2Q%43.51%
3.2 Future
Based on estimates for the next years, ALHC will show a very strong growth in Earnings Per Share. The EPS will grow by 33.00% on average per year.
ALHC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.41% yearly.
EPS Next Y81.05%
EPS Next 2Y45.25%
EPS Next 3Y37.64%
EPS Next 5Y33%
Revenue Next Year46.6%
Revenue Next 2Y37.63%
Revenue Next 3Y33.68%
Revenue Next 5Y28.41%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ALHC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
ALHC is valuated quite expensively with a Price/Forward Earnings ratio of 224.95.
65.00% of the companies in the same industry are cheaper than ALHC, based on the Price/Forward Earnings ratio.
ALHC is valuated expensively when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 224.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALHC is valued a bit more expensive than the industry average as 63.00% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALHC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 91.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ALHC's earnings are expected to grow with 37.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.25%
EPS Next 3Y37.64%
5. Dividend
5.1 Amount
ALHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.52
-0.25 (-1.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners74.72%
Inst Owner Change-1.03%
Ins Owners4.2%
Ins Owner Change-2.54%
Market Cap3.27B
Revenue(TTM)3.64B
Net Income(TTM)-20.81M
Analysts84.21
Price Target19.84 (20.1%)
Short Float %8.26%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)159.73%
Min EPS beat(2)124.15%
Max EPS beat(2)195.32%
EPS beat(4)4
Avg EPS beat(4)99.79%
Min EPS beat(4)18.53%
Max EPS beat(4)195.32%
EPS beat(8)6
Avg EPS beat(8)49.21%
EPS beat(12)9
Avg EPS beat(12)37.52%
EPS beat(16)13
Avg EPS beat(16)34.96%
Revenue beat(2)1
Avg Revenue beat(2)1.46%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)3.66%
Revenue beat(4)3
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)3.66%
Revenue beat(8)7
Avg Revenue beat(8)2.53%
Revenue beat(12)10
Avg Revenue beat(12)2.34%
Revenue beat(16)14
Avg Revenue beat(16)3.17%
PT rev (1m)0.8%
PT rev (3m)1.8%
EPS NQ rev (1m)-15.13%
EPS NQ rev (3m)-15.13%
EPS NY rev (1m)32.09%
EPS NY rev (3m)63.97%
Revenue NQ rev (1m)2.39%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 224.95 | ||
| P/S | 0.9 | ||
| P/FCF | 21.73 | ||
| P/OCF | 18.02 | ||
| P/B | 20.21 | ||
| P/tB | 26.12 | ||
| EV/EBITDA | 91.53 |
EPS(TTM)-0.11
EYN/A
EPS(NY)0.07
Fwd EY0.44%
FCF(TTM)0.76
FCFY4.6%
OCF(TTM)0.92
OCFY5.55%
SpS18.37
BVpS0.82
TBVpS0.63
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.89% | ||
| ROE | -12.86% | ||
| ROCE | 0.51% | ||
| ROIC | 0.4% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 0.07% | ||
| PM (TTM) | N/A | ||
| GM | 12.42% | ||
| FCFM | 4.14% |
ROA(3y)-21.65%
ROA(5y)-20.54%
ROE(3y)-95.11%
ROE(5y)-84.8%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.14%
GM growth 5Y-2.77%
F-Score6
Asset Turnover3.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 2.14 | ||
| Debt/EBITDA | 10.1 | ||
| Cap/Depr | 105.36% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 0.19 | ||
| Cash Conversion | 568.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 4.53 |
F-Score6
WACC9.28%
ROIC/WACC0.04
Cap/Depr(3y)151.69%
Cap/Depr(5y)136.01%
Cap/Sales(3y)1.72%
Cap/Sales(5y)1.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)85.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.29%
EPS Next Y81.05%
EPS Next 2Y45.25%
EPS Next 3Y37.64%
EPS Next 5Y33%
Revenue 1Y (TTM)47.39%
Revenue growth 3Y32.29%
Revenue growth 5Y28.99%
Sales Q2Q%43.51%
Revenue Next Year46.6%
Revenue Next 2Y37.63%
Revenue Next 3Y33.68%
Revenue Next 5Y28.41%
EBIT growth 1Y102.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year173.02%
EBIT Next 3Y58.74%
EBIT Next 5Y46.99%
FCF growth 1Y385.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y968.86%
OCF growth 3YN/A
OCF growth 5Y30.43%
ALIGNMENT HEALTHCARE INC / ALHC FAQ
What is the fundamental rating for ALHC stock?
ChartMill assigns a fundamental rating of 4 / 10 to ALHC.
What is the valuation status of ALIGNMENT HEALTHCARE INC (ALHC) stock?
ChartMill assigns a valuation rating of 3 / 10 to ALIGNMENT HEALTHCARE INC (ALHC). This can be considered as Overvalued.
How profitable is ALIGNMENT HEALTHCARE INC (ALHC) stock?
ALIGNMENT HEALTHCARE INC (ALHC) has a profitability rating of 1 / 10.
How financially healthy is ALIGNMENT HEALTHCARE INC?
The financial health rating of ALIGNMENT HEALTHCARE INC (ALHC) is 5 / 10.
What is the expected EPS growth for ALIGNMENT HEALTHCARE INC (ALHC) stock?
The Earnings per Share (EPS) of ALIGNMENT HEALTHCARE INC (ALHC) is expected to grow by 81.05% in the next year.