ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis
NYSE:ALIT - US01626W1018 - Common Stock
3.84 USD
+0.03 (+0.79%)
3.8301 USD
-0.01 (-0.26%)
Taking everything into account, ALIT scores 3 out of 10 in our fundamental rating. ALIT was compared to 81 industry peers in the Professional Services industry. ALIT may be in some trouble as it scores bad on both profitability and health. ALIT has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year ALIT was profitable.
In the past year ALIT had a positive cash flow from operations.
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
ALIT's Return On Assets of -17.18% is on the low side compared to the rest of the industry. ALIT is outperformed by 83.95% of its industry peers.
ALIT has a Return On Equity of -37.33%. This is in the lower half of the industry: ALIT underperforms 79.01% of its industry peers.
With a Return On Invested Capital value of 1.19%, ALIT is not doing good in the industry: 66.67% 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 12.68%.
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 (3.85%) which is in line with its industry peers.
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 49.38% of the companies in the same industry.
ALIT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALIT 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.
Compared to 1 year ago, ALIT has an improved debt to assets ratio.
2.2 Solvency
ALIT has an Altman-Z score of 0.38. This is a bad value and indicates that ALIT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.38, ALIT is doing worse than 79.01% of the companies in the same industry.
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 64.20% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ALIT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, ALIT is in line with its industry, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 14.57 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.16
WACC7.34%
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.
The Current ratio of ALIT (1.16) is worse than 62.96% 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.
With a Quick ratio value of 1.16, ALIT is not doing good in the industry: 62.96% 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 -22.06%.
Looking at the last year, ALIT shows a very negative growth in Revenue. The Revenue has decreased by -19.48% in the last year.
The Revenue has been decreasing by -1.79% on average over the past years.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.05% on average per year.
ALIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.55% yearly.
EPS Next Y6.17%
EPS Next 2Y6.88%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue Next Year-1.67%
Revenue Next 2Y0.69%
Revenue Next 3Y1.55%
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 7.25 indicates a rather cheap valuation of ALIT.
Based on the Price/Earnings ratio, ALIT is valued cheaply inside the industry as 95.06% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. ALIT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.90, which indicates a rather cheap valuation of ALIT.
96.30% of the companies in the same industry are more expensive than ALIT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, ALIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 5.9 |
4.2 Price Multiples
ALIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALIT is cheaper than 81.48% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALIT indicates a somewhat cheap valuation: ALIT is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.58 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
ALIT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y6.88%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
ALIT has a Yearly Dividend Yield of 4.26%, which is a nice return.
The stock price of ALIT dropped by -29.67% 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.
ALIT's Dividend Yield is rather good when compared to the industry average which is at 2.25. ALIT pays more dividend than 93.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ALIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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-5.5%
EPS Next 2Y6.88%
EPS Next 3Y8.05%
3.84
+0.03 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.43%
Inst Owner Change-0.26%
Ins Owners2.92%
Ins Owner Change10.74%
Market Cap2.07B
Analysts83.08
Price Target7.91 (105.99%)
Short Float %5.13%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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)-21.19%
PT rev (3m)-25.69%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)-4.79%
Revenue NQ rev (3m)-5.31%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 5.9 | ||
| P/S | 0.9 | ||
| P/FCF | 14.58 | ||
| P/OCF | 8.19 | ||
| P/B | 0.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)0.53
EY13.8%
EPS(NY)0.65
Fwd EY16.96%
FCF(TTM)0.26
FCFY6.86%
OCF(TTM)0.47
OCFY12.22%
SpS4.29
BVpS5.78
TBVpS-3.38
PEG (NY)1.17
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 | 0.38 |
F-Score5
WACC7.34%
ROIC/WACC0.16
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 Y6.17%
EPS Next 2Y6.88%
EPS Next 3Y8.05%
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-1.67%
Revenue Next 2Y0.69%
Revenue Next 3Y1.55%
Revenue Next 5YN/A
EBIT growth 1Y-8.25%
EBIT growth 3Y-37.75%
EBIT growth 5Y-30.78%
EBIT Next Year1376.91%
EBIT Next 3Y156.17%
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%