ALIGHT INC - CLASS A (ALIT)
US01626W1018 - Common Stock
We assign a fundamental rating of 3 out of 10 to ALIT. ALIT was compared to 82 industry peers in the Professional Services industry. Both the profitability and financial health of ALIT have multiple concerns. ALIT has a correct valuation and a medium growth rate.
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 reported 4 times negative net income.
ALIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALIT has a worse Return On Assets (-3.20%) than 75.31% of its industry peers.
ALIT has a worse Return On Equity (-7.73%) than 75.31% of its industry peers.
The Return On Invested Capital of ALIT (1.41%) is worse than 69.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALIT is significantly below the industry average of 11.79%.
The 3 year average ROIC (1.29%) for ALIT is below the current ROIC(1.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.2% | ||
| ROE | -7.73% | ||
| ROIC | 1.41% |
ROA(3y)-1.43%
ROA(5y)-1.09%
ROE(3y)-3.53%
ROE(5y)-4.59%
ROIC(3y)1.29%
ROIC(5y)2.7%
1.3 Margins
ALIT's Operating Margin of 4.49% is in line compared to the rest of the industry. ALIT outperforms 43.21% of its industry peers.
In the last couple of years the Operating Margin of ALIT has declined.
Looking at the Gross Margin, with a value of 33.43%, ALIT is in line with its industry, outperforming 41.98% 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 | 4.49% | ||
| PM (TTM) | N/A | ||
| GM | 33.43% |
OM growth 3Y-26.41%
OM growth 5Y-22.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.03%
GM growth 5Y-1.35%
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
ALIT has a worse debt/assets ratio than last year.
2.2 Solvency
ALIT has an Altman-Z score of 0.86. 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 0.86, ALIT is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
The Debt to FCF ratio of ALIT is 12.44, which is on the high side as it means it would take ALIT, 12.44 years of fcf income to pay off all of its debts.
ALIT's Debt to FCF ratio of 12.44 is on the low side compared to the rest of the industry. ALIT is outperformed by 67.90% of its industry peers.
ALIT has a Debt/Equity ratio of 0.62. This is a neutral value indicating ALIT is somewhat dependend on debt financing.
ALIT has a worse Debt to Equity ratio (0.62) than 64.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 12.44 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.18
WACC7.69%
2.3 Liquidity
ALIT has a Current Ratio of 1.27. This is a normal value and indicates that ALIT is financially healthy and should not expect problems in meeting its short term obligations.
ALIT has a Current ratio of 1.27. This is comparable to the rest of the industry: ALIT outperforms 45.68% of its industry peers.
A Quick Ratio of 1.27 indicates that ALIT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.27, ALIT is in line with its industry, outperforming 49.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
ALIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.79%, which is quite impressive.
ALIT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.88%.
ALIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.48% yearly.
EPS 1Y (TTM)26.79%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q50%
Revenue 1Y (TTM)8.88%
Revenue growth 3Y7.72%
Revenue growth 5Y7.48%
Revenue growth Q2Q1.91%
3.2 Future
ALIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.43% yearly.
Based on estimates for the next years, ALIT will show a small growth in Revenue. The Revenue will grow by 4.79% on average per year.
EPS Next Y6.69%
EPS Next 2Y10.56%
EPS Next 3Y14.43%
EPS Next 5YN/A
Revenue Next Year2.76%
Revenue Next 2Y4.5%
Revenue Next 3Y4.79%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.08, ALIT is valued correctly.
82.72% of the companies in the same industry are more expensive than ALIT, based on the Price/Earnings ratio.
ALIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.11.
ALIT is valuated correctly with a Price/Forward Earnings ratio of 12.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALIT indicates a rather cheap valuation: ALIT is cheaper than 82.72% of the companies listed in the same industry.
ALIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
ALIT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALIT is cheaper than 65.43% 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 60.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 13.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALIT's earnings are expected to grow with 14.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y10.56%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
No dividends for ALIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALIGHT INC - CLASS A
NYSE:ALIT (5/7/2024, 7:04:00 PM)
After market: 9.29 0 (0%)9.29
-0.02 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 12.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.2% | ||
| ROE | -7.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.49% | ||
| PM (TTM) | N/A | ||
| GM | 33.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.79%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y6.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.88%
Revenue growth 3Y7.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y