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ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis

NYSE:ALIT - New York Stock Exchange, Inc. - US01626W1018 - Common Stock - Currency: USD

5.175  +0.06 (+1.27%)

Fundamental Rating

3

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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

ALIT had positive earnings in the past year.
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.
ALIT Yearly Net Income VS EBIT VS OCF VS FCFALIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 200M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of -1.92%, ALIT is doing worse than 70.73% of the companies in the same industry.
ALIT has a worse Return On Equity (-3.64%) than 70.73% of its industry peers.
With a Return On Invested Capital value of 0.60%, ALIT is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ALIT is significantly below the industry average of 13.48%.
The 3 year average ROIC (0.45%) for ALIT is below the current ROIC(0.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -1.92%
ROE -3.64%
ROIC 0.6%
ROA(3y)-1.89%
ROA(5y)-1.54%
ROE(3y)-4.26%
ROE(5y)-5.86%
ROIC(3y)0.45%
ROIC(5y)1.52%
ALIT Yearly ROA, ROE, ROICALIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15

1.3 Margins

With a Operating Margin value of 2.36%, ALIT perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
In the last couple of years the Operating Margin of ALIT has declined.
ALIT's Gross Margin of 34.05% is in line compared to the rest of the industry. ALIT outperforms 47.56% 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 RankSector Rank
OM 2.36%
PM (TTM) N/A
GM 34.05%
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%
ALIT Yearly Profit, Operating, Gross MarginsALIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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3

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.
Compared to 5 years ago, ALIT has less shares outstanding
The debt/assets ratio for ALIT has been reduced compared to a year ago.
ALIT Yearly Shares OutstandingALIT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
ALIT Yearly Total Debt VS Total AssetsALIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 0.68, we must say that ALIT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALIT (0.68) is worse than 73.17% of its industry peers.
ALIT has a debt to FCF ratio of 15.90. This is a negative value and a sign of low solvency as ALIT would need 15.90 years to pay back of all of its debts.
ALIT has a worse Debt to FCF ratio (15.90) than 62.20% of its industry peers.
ALIT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, ALIT is in line with its industry, outperforming 45.12% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 15.9
Altman-Z 0.68
ROIC/WACC0.08
WACC7.63%
ALIT Yearly LT Debt VS Equity VS FCFALIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 1.42 indicates that ALIT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, ALIT perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT has a Quick ratio of 1.42. This is comparable to the rest of the industry: ALIT outperforms 57.32% of its industry peers.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 1.42
ALIT Yearly Current Assets VS Current LiabilitesALIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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2

3. Growth

3.1 Past

The earnings per share for ALIT have decreased strongly by -19.72% in the last year.
The Revenue for ALIT has decreased by -31.61% in the past year. This is quite bad
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)-19.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)-31.61%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-29.17%

3.2 Future

The Earnings Per Share is expected to grow by 8.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.11% on average over the next years.
EPS Next Y7.39%
EPS Next 2Y7.55%
EPS Next 3Y8.2%
EPS Next 5YN/A
Revenue Next Year0.38%
Revenue Next 2Y2.11%
Revenue Next 3Y3.11%
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.
ALIT Yearly Revenue VS EstimatesALIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
ALIT Yearly EPS VS EstimatesALIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.08, which indicates a very decent valuation of ALIT.
Based on the Price/Earnings ratio, ALIT is valued cheaply inside the industry as 86.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.88. ALIT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.45, the valuation of ALIT can be described as reasonable.
ALIT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALIT is cheaper than 92.68% of the companies in the same industry.
ALIT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
Industry RankSector Rank
PE 9.08
Fwd PE 8.45
ALIT Price Earnings VS Forward Price EarningsALIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

73.17% of the companies in the same industry are more expensive than ALIT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALIT is valued a bit cheaper than 64.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.45
EV/EBITDA 10.03
ALIT Per share dataALIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

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)1.23
PEG (5Y)N/A
EPS Next 2Y7.55%
EPS Next 3Y8.2%

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3

5. Dividend

5.1 Amount

ALIT has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
The stock price of ALIT dropped by -25.40% 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 2.37. ALIT pays more dividend than 91.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ALIT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.04%

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 Years0
Div Non Decr Years0
ALIT Yearly Dividends per shareALIT Yearly Dividends per shareYearly Dividends per share 2024 2025 0 0 0 0 0

5.3 Sustainability

ALIT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-13.38%
EPS Next 2Y7.55%
EPS Next 3Y8.2%
ALIT Yearly Income VS Free CF VS DividendALIT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M -300M

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ALIGHT INC - CLASS A

NYSE:ALIT (5/1/2025, 2:42:10 PM)

5.175

+0.06 (+1.27%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners107.57%
Inst Owner Change0.21%
Ins Owners3.23%
Ins Owner Change-13.94%
Market Cap2.81B
Analysts82.86
Price Target10.64 (105.6%)
Short Float %5.13%
Short Ratio2.68
Dividend
Industry RankSector Rank
Dividend Yield 3.04%
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP-13.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-03 2025-03-03 (0.04)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.48%
Min EPS beat(2)0.27%
Max EPS beat(2)4.69%
EPS beat(4)3
Avg EPS beat(4)1.51%
Min EPS beat(4)-5.22%
Max EPS beat(4)6.32%
EPS beat(8)7
Avg EPS beat(8)5.6%
EPS beat(12)9
Avg EPS beat(12)12.4%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-9.06%
Min Revenue beat(4)-31.76%
Max Revenue beat(4)0.82%
Revenue beat(8)2
Avg Revenue beat(8)-6.1%
Revenue beat(12)3
Avg Revenue beat(12)-4.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.31%
PT rev (3m)-8.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.85%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-7.08%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-3.03%
Valuation
Industry RankSector Rank
PE 9.08
Fwd PE 8.45
P/S 1.21
P/FCF 21.45
P/OCF 11.15
P/B 0.65
P/tB N/A
EV/EBITDA 10.03
EPS(TTM)0.57
EY11.01%
EPS(NY)0.61
Fwd EY11.83%
FCF(TTM)0.24
FCFY4.66%
OCF(TTM)0.46
OCFY8.97%
SpS4.29
BVpS7.93
TBVpS-3.24
PEG (NY)1.23
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.92%
ROE -3.64%
ROCE 0.75%
ROIC 0.6%
ROICexc 0.62%
ROICexgc 4.88%
OM 2.36%
PM (TTM) N/A
GM 34.05%
FCFM 5.62%
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%
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-Score7
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 15.9
Debt/EBITDA 4.53
Cap/Depr 30.63%
Cap/Sales 5.19%
Interest Coverage 0.51
Cash Conversion 56%
Profit Quality N/A
Current Ratio 1.42
Quick Ratio 1.42
Altman-Z 0.68
F-Score7
WACC7.63%
ROIC/WACC0.08
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)-19.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y7.39%
EPS Next 2Y7.55%
EPS Next 3Y8.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.61%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-29.17%
Revenue Next Year0.38%
Revenue Next 2Y2.11%
Revenue Next 3Y3.11%
Revenue Next 5YN/A
EBIT growth 1Y-64.05%
EBIT growth 3Y-37.75%
EBIT growth 5Y-30.78%
EBIT Next Year1384.29%
EBIT Next 3Y155.13%
EBIT Next 5YN/A
FCF growth 1Y-42.04%
FCF growth 3Y407.88%
FCF growth 5Y-7.26%
OCF growth 1Y-34.72%
OCF growth 3Y29.89%
OCF growth 5Y-1.22%