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ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis

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

5.22  -0.02 (-0.38%)

After market: 5.22 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ALIT. 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 valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

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.
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

ALIT has a worse Return On Assets (-0.86%) than 65.43% of its industry peers.
ALIT has a Return On Equity of -1.61%. This is in the lower half of the industry: ALIT underperforms 64.20% of its industry peers.
With a Return On Invested Capital value of 0.70%, ALIT is not doing good in the industry: 66.67% 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 12.78%.
The last Return On Invested Capital (0.70%) for ALIT is above the 3 year average (0.45%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.86%
ROE -1.61%
ROIC 0.7%
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

ALIT has a Operating Margin (2.67%) which is comparable to the rest of the industry.
ALIT's Operating Margin has declined in the last couple of years.
ALIT has a Gross Margin (33.74%) which is in line with 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 2.67%
PM (TTM) N/A
GM 33.74%
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

ALIT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALIT has less shares outstanding
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.
With a Altman-Z score value of 0.68, ALIT is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
ALIT has a debt to FCF ratio of 18.73. This is a negative value and a sign of low solvency as ALIT would need 18.73 years to pay back of all of its debts.
ALIT has a Debt to FCF ratio of 18.73. This is in the lower half of the industry: ALIT underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that ALIT is not too dependend on debt financing.
ALIT's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. ALIT outperforms 46.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 18.73
Altman-Z 0.68
ROIC/WACC0.09
WACC7.76%
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

ALIT has a Current Ratio of 1.18. 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 1.18. This is in the lower half of the industry: ALIT underperforms 60.49% of its industry peers.
A Quick Ratio of 1.18 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT's Quick ratio of 1.18 is on the low side compared to the rest of the industry. ALIT is outperformed by 60.49% of its industry peers.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.18
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

ALIT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.94%.
Looking at the last year, ALIT shows a very negative growth in Revenue. The Revenue has decreased by -26.04% 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)-23.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-26.04%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-32.84%

3.2 Future

The Earnings Per Share is expected to grow by 7.89% on average over the next years.
ALIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y7.39%
EPS Next 2Y7.76%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue Next Year0.08%
Revenue Next 2Y2.03%
Revenue Next 3Y3.01%
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.
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 9.67, which indicates a very decent valuation of ALIT.
90.12% 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 26.34.
Based on the Price/Forward Earnings ratio of 7.89, the valuation of ALIT can be described as very cheap.
Based on the Price/Forward Earnings ratio, ALIT is valued cheaper than 90.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. ALIT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.67
Fwd PE 7.89
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

Based on the Enterprise Value to EBITDA ratio, ALIT is valued a bit cheaper than the industry average as 75.31% of the companies are valued more expensively.
ALIT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 25.31
EV/EBITDA 10.39
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)1.31
PEG (5Y)N/A
EPS Next 2Y7.76%
EPS Next 3Y7.89%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.00%, ALIT has a reasonable but not impressive dividend return.
ALIT's Dividend Yield is rather good when compared to the industry average which is at 2.09. ALIT pays more dividend than 92.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ALIT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3%

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 Years1
Div Non Decr Years1
ALIT Yearly Dividends per shareALIT Yearly Dividends per shareYearly Dividends per share 2024 2025 0.02 0.04 0.06

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-61.76%
EPS Next 2Y7.76%
EPS Next 3Y7.89%
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 (6/18/2025, 8:04:00 PM)

After market: 5.22 0 (0%)

5.22

-0.02 (-0.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-04 2025-08-04/bmo
Inst Owners106.77%
Inst Owner Change-1.81%
Ins Owners2.87%
Ins Owner Change7.8%
Market Cap2.81B
Analysts83.08
Price Target10.03 (92.15%)
Short Float %5.12%
Short Ratio2.76
Dividend
Industry RankSector Rank
Dividend Yield 3%
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP-61.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-02 2025-06-02 (0.04)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.3%
Min EPS beat(2)-2.1%
Max EPS beat(2)4.69%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-5.22%
Max EPS beat(4)4.69%
EPS beat(8)6
Avg EPS beat(8)4.88%
EPS beat(12)8
Avg EPS beat(12)10.42%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.79%
Revenue beat(4)1
Avg Revenue beat(4)-8.3%
Min Revenue beat(4)-31.76%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-6.37%
Revenue beat(12)3
Avg Revenue beat(12)-4.27%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.71%
PT rev (3m)-8.83%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE 9.67
Fwd PE 7.89
P/S 1.21
P/FCF 25.31
P/OCF 12.49
P/B 0.66
P/tB N/A
EV/EBITDA 10.39
EPS(TTM)0.54
EY10.34%
EPS(NY)0.66
Fwd EY12.68%
FCF(TTM)0.21
FCFY3.95%
OCF(TTM)0.42
OCFY8.01%
SpS4.31
BVpS7.86
TBVpS-3.28
PEG (NY)1.31
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.86%
ROE -1.61%
ROCE 0.88%
ROIC 0.7%
ROICexc 0.72%
ROICexgc 6.18%
OM 2.67%
PM (TTM) N/A
GM 33.74%
FCFM 4.78%
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-Score6
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 18.73
Debt/EBITDA 4.54
Cap/Depr 29.46%
Cap/Sales 4.91%
Interest Coverage 250
Cash Conversion 50.11%
Profit Quality N/A
Current Ratio 1.18
Quick Ratio 1.18
Altman-Z 0.68
F-Score6
WACC7.76%
ROIC/WACC0.09
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)-23.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-23.08%
EPS Next Y7.39%
EPS Next 2Y7.76%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-26.04%
Revenue growth 3Y-7.17%
Revenue growth 5Y-1.79%
Sales Q2Q%-32.84%
Revenue Next Year0.08%
Revenue Next 2Y2.03%
Revenue Next 3Y3.01%
Revenue Next 5YN/A
EBIT growth 1Y-51.94%
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-40.64%
FCF growth 3Y407.88%
FCF growth 5Y-7.26%
OCF growth 1Y-33.63%
OCF growth 3Y29.89%
OCF growth 5Y-1.22%