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%)
ALIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. Both the profitability and financial health of ALIT have multiple concerns. ALIT has a bad growth rate and is valued cheaply.
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.
1.2 Ratios
The Return On Assets of ALIT (-17.18%) is worse than 79.31% of its industry peers.
ALIT has a Return On Equity of -37.33%. This is in the lower half of the industry: ALIT underperforms 75.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.19%, ALIT is doing worse than 62.07% of the companies in the same industry.
ALIT had an Average Return On Invested Capital over the past 3 years of 0.45%. This 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
With a Operating Margin value of 3.85%, ALIT perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
In the last couple of years the Operating Margin of ALIT has declined.
ALIT has a Gross Margin of 34.27%. This is comparable 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALIT is destroying value.
ALIT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALIT has less shares outstanding
ALIT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that ALIT is in the distress zone and has some risk of bankruptcy.
ALIT has a worse Altman-Z score (0.25) than 75.86% of its industry peers.
ALIT has a debt to FCF ratio of 14.57. This is a negative value and a sign of low solvency as ALIT would need 14.57 years to pay back of all of its debts.
ALIT's Debt to FCF ratio of 14.57 is in line compared to the rest of the industry. ALIT outperforms 40.23% 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 of 0.65. This is comparable to the rest of the industry: ALIT outperforms 42.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 14.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.18
WACC6.51%
2.3 Liquidity
A Current Ratio of 1.16 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT has a Current ratio of 1.16. This is in the lower half of the industry: ALIT underperforms 63.22% 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.
ALIT has a Quick ratio of 1.16. This is in the lower half of the industry: ALIT underperforms 63.22% of its industry peers.
| 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%.
ALIT shows a decrease in Revenue. In the last year, the revenue decreased by -2.26%.
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
Based on estimates for the next years, ALIT will show a small growth in Earnings Per Share. The EPS will grow by 7.10% on average per year.
Based on estimates for the next years, ALIT will show a small growth in Revenue. The Revenue will grow by 1.12% on average per year.
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
ALIT is valuated cheaply with a Price/Earnings ratio of 4.20.
Compared to the rest of the industry, the Price/Earnings ratio of ALIT indicates a rather cheap valuation: ALIT is cheaper than 97.70% of the companies listed in the same industry.
ALIT is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 3.69 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.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ALIT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.2 | ||
| Fwd PE | 3.69 |
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 89.66% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALIT is valued cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 6.36 |
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)0.62
PEG (5Y)N/A
EPS Next 2Y5.71%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, ALIT is a good candidate for dividend investing.
In the last 3 months the price of ALIT has falen by -38.32%. 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 4.46. ALIT pays more dividend than 95.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ALIT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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 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)4.17%
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 | 6.36 |
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 | 0.25 |
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.