ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALIT - US01626W1018 - Common Stock
1.66 USD
-0.04 (-2.35%)
1.68 USD
+0.02 (+1.2%)
Taking everything into account, ALIT scores 3 out of 10 in our fundamental rating. ALIT was compared to 86 industry peers in the Professional Services industry. ALIT has a bad profitability rating. Also its financial health evaluation is rather negative. ALIT is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ALIT had positive earnings in the past year.
In the past year ALIT had a positive cash flow from operations.
In the past 5 years ALIT always reported negative net income.
ALIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALIT's Return On Assets of -38.95% is on the low side compared to the rest of the industry. ALIT is outperformed by 86.05% of its industry peers.
Looking at the Return On Equity, with a value of -107.74%, ALIT is doing worse than 86.05% of the companies in the same industry.
ALIT's Return On Invested Capital of 5.30% is in line compared to the rest of the industry. ALIT outperforms 48.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALIT is significantly below the industry average of 11.86%.
The 3 year average ROIC (0.45%) for ALIT is below the current ROIC(5.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -38.95% | ||
| ROE | -107.74% | ||
| ROIC | 5.3% |
ROA(3y)-1.89%
ROA(5y)-1.54%
ROE(3y)-4.26%
ROE(5y)-5.86%
ROIC(3y)0.45%
ROIC(5y)1.52%
1.3 Margins
With a decent Operating Margin value of 13.81%, ALIT is doing good in the industry, outperforming 77.91% of the companies in the same industry.
In the last couple of years the Operating Margin of ALIT has declined.
ALIT has a Gross Margin of 34.77%. This is comparable to the rest of the industry: ALIT outperforms 50.00% of its industry peers.
ALIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.81% | ||
| PM (TTM) | N/A | ||
| GM | 34.78% |
OM growth 3Y-32.94%
OM growth 5Y-29.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.87%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
ALIT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALIT has less shares outstanding
ALIT has less shares outstanding than it did 5 years ago.
ALIT has a better debt/assets ratio than last year.
2.2 Solvency
ALIT has an Altman-Z score of 0.08. This is a bad value and indicates that ALIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.08, ALIT is not doing good in the industry: 75.58% of the companies in the same industry are doing better.
The Debt to FCF ratio of ALIT is 8.49, which is on the high side as it means it would take ALIT, 8.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALIT (8.49) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that ALIT has dependencies on debt financing.
ALIT's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. ALIT is outperformed by 68.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.49 | ||
| Altman-Z | 0.08 |
ROIC/WACC0.79
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.21 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT has a Current ratio of 1.21. This is in the lower half of the industry: ALIT underperforms 62.79% of its industry peers.
A Quick Ratio of 1.21 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT's Quick ratio of 1.21 is on the low side compared to the rest of the industry. ALIT is outperformed by 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
ALIT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.11%.
ALIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.37%.
ALIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.79% yearly.
EPS 1Y (TTM)-11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)-12.37%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-3.96%
3.2 Future
The Earnings Per Share is expected to grow by 4.33% on average over the next years.
Based on estimates for the next years, ALIT will show a small growth in Revenue. The Revenue will grow by 0.25% on average per year.
EPS Next Y-1.07%
EPS Next 2Y1.45%
EPS Next 3Y4.33%
EPS Next 5YN/A
Revenue Next Year-3.31%
Revenue Next 2Y-0.9%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.96, which indicates a rather cheap valuation of ALIT.
Based on the Price/Earnings ratio, ALIT is valued cheaper than 96.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALIT to the average of the S&P500 Index (27.19), we can say ALIT is valued rather cheaply.
ALIT is valuated cheaply with a Price/Forward Earnings ratio of 2.83.
Based on the Price/Forward Earnings ratio, ALIT is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
ALIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.96 | ||
| Fwd PE | 2.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALIT is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALIT is valued cheaply inside the industry as 96.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.64 | ||
| EV/EBITDA | 3.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.45%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
ALIT has a Yearly Dividend Yield of 8.21%, which is a nice return.
In the last 3 months the price of ALIT has falen by -45.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.54, ALIT pays a better dividend. On top of this ALIT pays more dividend than 96.51% of the companies listed in the same industry.
ALIT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
5.2 History
ALIT is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ALIT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-3.99%
EPS Next 2Y1.45%
EPS Next 3Y4.33%
1.66
-0.04 (-2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.17%
Inst Owner Change0%
Ins Owners3.01%
Ins Owner Change3.06%
Market Cap885.11M
Revenue(TTM)2.29B
Net Income(TTM)-2.16B
Analysts83.08
Price Target5.3 (219.28%)
Short Float %6.61%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP-3.99%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.55%
Min EPS beat(2)-9.1%
Max EPS beat(2)-5.99%
EPS beat(4)1
Avg EPS beat(4)-3.13%
Min EPS beat(4)-9.1%
Max EPS beat(4)4.69%
EPS beat(8)4
Avg EPS beat(8)0.36%
EPS beat(12)7
Avg EPS beat(12)2.11%
EPS beat(16)9
Avg EPS beat(16)6.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-1.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.79%
Revenue beat(8)1
Avg Revenue beat(8)-6.22%
Revenue beat(12)3
Avg Revenue beat(12)-4.41%
Revenue beat(16)4
Avg Revenue beat(16)-3.24%
PT rev (1m)-2.5%
PT rev (3m)-23.53%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-11.86%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-5.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.96 | ||
| Fwd PE | 2.83 | ||
| P/S | 0.39 | ||
| P/FCF | 3.64 | ||
| P/OCF | 2.5 | ||
| P/B | 0.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.83 |
EPS(TTM)0.56
EY33.73%
EPS(NY)0.59
Fwd EY35.34%
FCF(TTM)0.46
FCFY27.45%
OCF(TTM)0.66
OCFY39.99%
SpS4.29
BVpS3.75
TBVpS-2.87
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -38.95% | ||
| ROE | -107.74% | ||
| ROCE | 6.71% | ||
| ROIC | 5.3% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 25.63% | ||
| OM | 13.81% | ||
| PM (TTM) | N/A | ||
| GM | 34.78% | ||
| FCFM | 10.62% |
ROA(3y)-1.89%
ROA(5y)-1.54%
ROE(3y)-4.26%
ROE(5y)-5.86%
ROIC(3y)0.45%
ROIC(5y)1.52%
ROICexc(3y)0.47%
ROICexc(5y)1.64%
ROICexgc(3y)3.66%
ROICexgc(5y)13.8%
ROCE(3y)0.57%
ROCE(5y)1.92%
ROICexgc growth 3Y-43.03%
ROICexgc growth 5Y-34.48%
ROICexc growth 3Y-33.48%
ROICexc growth 5Y-35.67%
OM growth 3Y-32.94%
OM growth 5Y-29.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.87%
GM growth 5Y-0.32%
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 8.49 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 27.34% | ||
| Cap/Sales | 4.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 0.08 |
F-Score5
WACC6.75%
ROIC/WACC0.79
Cap/Depr(3y)35.37%
Cap/Depr(5y)34.25%
Cap/Sales(3y)5.54%
Cap/Sales(5y)4.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y-1.07%
EPS Next 2Y1.45%
EPS Next 3Y4.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.37%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-3.96%
Revenue Next Year-3.31%
Revenue Next 2Y-0.9%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
EBIT growth 1Y364.71%
EBIT growth 3Y-37.75%
EBIT growth 5Y-30.78%
EBIT Next Year1336.35%
EBIT Next 3Y149.84%
EBIT Next 5YN/A
FCF growth 1Y38.07%
FCF growth 3Y407.88%
FCF growth 5Y-7.26%
OCF growth 1Y5.36%
OCF growth 3Y29.89%
OCF growth 5Y-1.22%
ALIGHT INC - CLASS A / ALIT FAQ
What is the ChartMill fundamental rating of ALIGHT INC - CLASS A (ALIT) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALIT.
Can you provide the valuation status for ALIGHT INC - CLASS A?
ChartMill assigns a valuation rating of 7 / 10 to ALIGHT INC - CLASS A (ALIT). This can be considered as Undervalued.
How profitable is ALIGHT INC - CLASS A (ALIT) stock?
ALIGHT INC - CLASS A (ALIT) has a profitability rating of 3 / 10.
How financially healthy is ALIGHT INC - CLASS A?
The financial health rating of ALIGHT INC - CLASS A (ALIT) is 3 / 10.
Can you provide the dividend sustainability for ALIT stock?
The dividend rating of ALIGHT INC - CLASS A (ALIT) is 4 / 10 and the dividend payout ratio is -3.99%.