ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis
USA - NYSE:ALIT - US01626W1018 - Common Stock
2.35 USD
-0.04 (-1.67%)
2.38 USD
+0.03 (+1.28%)
We assign a fundamental rating of 4 out of 10 to ALIT. ALIT was compared to 87 industry peers in the Professional Services industry. Both the profitability and financial health of ALIT have multiple concerns. ALIT is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ALIT was profitable.
ALIT had a positive operating cash flow in the past year.
ALIT had negative earnings in each of the past 5 years.
Each year in the past 5 years ALIT had a positive operating cash flow.
1.2 Ratios
ALIT has a Return On Assets of -17.18%. This is in the lower half of the industry: ALIT underperforms 79.31% of its industry peers.
With a Return On Equity value of -37.33%, ALIT is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
ALIT has a Return On Invested Capital of 1.19%. This is in the lower half of the industry: ALIT underperforms 62.07% 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 13.25%.
The last Return On Invested Capital (1.19%) for ALIT is above the 3 year average (0.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.18% | ||
| ROE | -37.33% | ||
| ROIC | 1.19% |
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
ALIT has a Operating Margin of 3.85%. This is comparable to the rest of the industry: ALIT outperforms 48.28% of its industry peers.
In the last couple of years the Operating Margin of ALIT has declined.
ALIT's Gross Margin of 34.27% is in line compared to the rest of the industry. ALIT outperforms 51.72% of its industry peers.
In the last couple of years the Gross Margin of ALIT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 34.27% |
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.
The number of shares outstanding for ALIT has been reduced compared to 1 year ago.
ALIT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALIT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that ALIT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALIT (0.26) is worse than 75.86% of its industry peers.
The Debt to FCF ratio of ALIT is 14.57, which is on the high side as it means it would take ALIT, 14.57 years of fcf income to pay off all of its debts.
ALIT has a Debt to FCF ratio of 14.57. This is comparable to the rest of the industry: ALIT outperforms 40.23% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ALIT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, ALIT perfoms like the industry average, outperforming 42.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 14.57 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.18
WACC6.51%
2.3 Liquidity
ALIT has a Current Ratio of 1.16. This is a normal value and indicates that ALIT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.16, ALIT is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
A Quick Ratio of 1.16 indicates that ALIT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.16, ALIT is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
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%.
The Revenue has decreased by -2.26% in the past year.
Measured over the past years, ALIT shows a decrease in Revenue. The Revenue has been decreasing by -1.79% on average per year.
EPS 1Y (TTM)-11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)-2.26%
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 7.10% on average over the next years.
ALIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.12% yearly.
EPS Next Y6.73%
EPS Next 2Y5.71%
EPS Next 3Y7.1%
EPS Next 5YN/A
Revenue Next Year-1.88%
Revenue Next 2Y0.23%
Revenue Next 3Y1.12%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.20 indicates a rather cheap valuation of ALIT.
97.70% of the companies in the same industry are more expensive than ALIT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.83, ALIT is valued rather cheaply.
The Price/Forward Earnings ratio is 3.69, which indicates a rather cheap valuation of ALIT.
Based on the Price/Forward Earnings ratio, ALIT is valued cheaper than 96.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALIT to the average of the S&P500 Index (32.68), we can say ALIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.2 | ||
| Fwd PE | 3.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALIT is valued cheaper than 89.66% of the companies in the same industry.
ALIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALIT is cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 6.4 |
4.3 Compensation for Growth
ALIT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y5.71%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
ALIT has a Yearly Dividend Yield of 6.69%, which is a nice return.
The stock price of ALIT dropped by -38.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.58, ALIT pays a better dividend. On top of this ALIT pays more dividend than 95.40% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ALIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
ALIT does not have a reliable dividend history as it only pays dividend since a couple or years.
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-5.5%
EPS Next 2Y5.71%
EPS Next 3Y7.1%
2.35
-0.04 (-1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105%
Inst Owner Change-0.14%
Ins Owners3.06%
Ins Owner Change4.15%
Market Cap1.27B
Revenue(TTM)2.33B
Net Income(TTM)-1.16B
Analysts83.08
Price Target7.22 (207.23%)
Short Float %5.32%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP-5.5%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.05%
Min EPS beat(2)-5.99%
Max EPS beat(2)-2.1%
EPS beat(4)2
Avg EPS beat(4)-0.78%
Min EPS beat(4)-5.99%
Max EPS beat(4)4.69%
EPS beat(8)5
Avg EPS beat(8)2.59%
EPS beat(12)8
Avg EPS beat(12)10.22%
EPS beat(16)10
Avg EPS beat(16)9.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.79%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-6.38%
Revenue beat(12)3
Avg Revenue beat(12)-4.22%
Revenue beat(16)4
Avg Revenue beat(16)-3.17%
PT rev (1m)-0.24%
PT rev (3m)-27.97%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-1.5%
Revenue NQ rev (3m)-5.25%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.2 | ||
| Fwd PE | 3.69 | ||
| P/S | 0.55 | ||
| P/FCF | 8.92 | ||
| P/OCF | 5.01 | ||
| P/B | 0.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.4 |
EPS(TTM)0.56
EY23.83%
EPS(NY)0.64
Fwd EY27.1%
FCF(TTM)0.26
FCFY11.2%
OCF(TTM)0.47
OCFY19.96%
SpS4.29
BVpS5.78
TBVpS-3.38
PEG (NY)0.62
PEG (5Y)N/A
Graham Number8.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.18% | ||
| ROE | -37.33% | ||
| ROCE | 1.51% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 9.54% | ||
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 34.27% | ||
| FCFM | 6.14% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 14.57 | ||
| Debt/EBITDA | 4.15 | ||
| Cap/Depr | 27.75% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 0.26 |
F-Score5
WACC6.51%
ROIC/WACC0.18
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 Y6.73%
EPS Next 2Y5.71%
EPS Next 3Y7.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-3.96%
Revenue Next Year-1.88%
Revenue Next 2Y0.23%
Revenue Next 3Y1.12%
Revenue Next 5YN/A
EBIT growth 1Y-8.25%
EBIT growth 3Y-37.75%
EBIT growth 5Y-30.78%
EBIT Next Year1376.81%
EBIT Next 3Y154.82%
EBIT Next 5YN/A
FCF growth 1Y-17.44%
FCF growth 3Y407.88%
FCF growth 5Y-7.26%
OCF growth 1Y-23.33%
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 4 / 10 to ALIT.
What is the valuation status for ALIT stock?
ChartMill assigns a valuation rating of 8 / 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.
Can you provide the PE and PB ratios for ALIT stock?
The Price/Earnings (PE) ratio for ALIGHT INC - CLASS A (ALIT) is 4.2 and the Price/Book (PB) ratio is 0.41.
What is the earnings growth outlook for ALIGHT INC - CLASS A?
The Earnings per Share (EPS) of ALIGHT INC - CLASS A (ALIT) is expected to grow by 6.73% in the next year.