ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis
USA - NYSE:ALIT - US01626W1018 - Common Stock
3.04 USD
-0.02 (-0.65%)
3 USD
-0.04 (-1.32%)
We assign a fundamental rating of 4 out of 10 to ALIT. ALIT was compared to 82 industry peers in the Professional Services industry. ALIT may be in some trouble as it scores bad on both profitability and health. ALIT is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ALIT was profitable.
ALIT had a positive operating cash flow in the past year.
In the past 5 years ALIT always reported negative net income.
Each year in the past 5 years ALIT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -17.18%, ALIT is doing worse than 81.71% of the companies in the same industry.
ALIT's Return On Equity of -37.33% is on the low side compared to the rest of the industry. ALIT is outperformed by 78.05% of its industry peers.
With a Return On Invested Capital value of 1.19%, ALIT is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ALIT is significantly below the industry average of 13.20%.
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
The Operating Margin of ALIT (3.85%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALIT has declined.
With a Gross Margin value of 34.27%, ALIT perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALIT is destroying value.
Compared to 1 year ago, ALIT has less shares outstanding
Compared to 5 years ago, ALIT has less shares outstanding
Compared to 1 year ago, ALIT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.32, we must say that ALIT is in the distress zone and has some risk of bankruptcy.
ALIT has a worse Altman-Z score (0.32) than 80.49% 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 in the lower half of the industry: ALIT underperforms 62.20% of its industry peers.
ALIT has a Debt/Equity ratio of 0.65. This is a neutral value indicating ALIT is somewhat dependend on debt financing.
ALIT has a Debt to Equity ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 14.57 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.18
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.16 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT's Current ratio of 1.16 is on the low side compared to the rest of the industry. ALIT is outperformed by 63.41% of its industry peers.
ALIT has a Quick 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.
The Quick ratio of ALIT (1.16) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for ALIT have decreased strongly by -22.06% in the last year.
Looking at the last year, ALIT shows a very negative growth in Revenue. The Revenue has decreased by -19.48% in the last year.
ALIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.79% yearly.
EPS 1Y (TTM)-22.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-9.09%
Revenue 1Y (TTM)-19.48%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-4%
3.2 Future
Based on estimates for the next years, ALIT will show a small growth in Earnings Per Share. The EPS will grow by 7.58% on average per year.
ALIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y6.32%
EPS Next 2Y6.51%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue Next Year-1.42%
Revenue Next 2Y0.77%
Revenue Next 3Y2.04%
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
A Price/Earnings ratio of 5.74 indicates a rather cheap valuation of ALIT.
95.12% of the companies in the same industry are more expensive than ALIT, based on the Price/Earnings ratio.
ALIT is valuated cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.70, the valuation of ALIT can be described as very cheap.
Based on the Price/Forward Earnings ratio, ALIT is valued cheaper than 96.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. ALIT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 4.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALIT indicates a rather cheap valuation: ALIT is cheaper than 84.15% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALIT is valued a bit cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 7.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y6.51%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.98%, ALIT is a good candidate for dividend investing.
In the last 3 months the price of ALIT has falen by -46.48%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ALIT's Dividend Yield is rather good when compared to the industry average which is at 3.61. ALIT pays more dividend than 95.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ALIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
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
The earnings of ALIT are negative and hence is the payout ratio. ALIT will probably not be able to sustain this dividend level.
DP-5.5%
EPS Next 2Y6.51%
EPS Next 3Y7.58%
3.04
-0.02 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105%
Inst Owner Change0%
Ins Owners3.06%
Ins Owner Change4.15%
Market Cap1.64B
Analysts83.08
Price Target6.94 (128.29%)
Short Float %5.6%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
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)-12.26%
PT rev (3m)-30.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.54%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 4.7 | ||
| P/S | 0.71 | ||
| P/FCF | 11.55 | ||
| P/OCF | 6.48 | ||
| P/B | 0.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.14 |
EPS(TTM)0.53
EY17.43%
EPS(NY)0.65
Fwd EY21.27%
FCF(TTM)0.26
FCFY8.66%
OCF(TTM)0.47
OCFY15.43%
SpS4.29
BVpS5.78
TBVpS-3.38
PEG (NY)0.91
PEG (5Y)N/A
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%
ROICexcg growth 3Y-43.03%
ROICexcg 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 | 0.32 |
F-Score5
WACC6.75%
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)-22.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-9.09%
EPS Next Y6.32%
EPS Next 2Y6.51%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.48%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-4%
Revenue Next Year-1.42%
Revenue Next 2Y0.77%
Revenue Next 3Y2.04%
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%