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ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis

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

5.54  +0.11 (+2.03%)

After market: 5.54 0 (0%)

Fundamental Rating

3

Overall ALIT gets a fundamental rating of 3 out of 10. We evaluated ALIT against 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.
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.
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

The Return On Assets of ALIT (-0.86%) is worse than 69.14% of its industry peers.
ALIT has a worse Return On Equity (-1.61%) than 66.67% of its industry peers.
ALIT has a worse Return On Invested Capital (0.70%) than 67.90% of its industry peers.
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's Operating Margin of 2.67% is in line compared to the rest of the industry. ALIT outperforms 41.98% of its industry peers.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALIT is destroying value.
The number of shares outstanding for ALIT has been reduced compared to 1 year ago.
The number of shares outstanding for ALIT has been reduced compared to 5 years ago.
ALIT has a better debt/assets ratio than last year.
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

ALIT has an Altman-Z score of 0.70. This is a bad value and indicates that ALIT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ALIT (0.70) is worse than 75.31% of its industry peers.
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's Debt to FCF ratio of 18.73 is on the low side compared to the rest of the industry. ALIT is outperformed by 66.67% of its industry peers.
ALIT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
ALIT has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: ALIT outperforms 45.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 18.73
Altman-Z 0.7
ROIC/WACC0.09
WACC7.7%
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 1.18 indicates that ALIT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, ALIT perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that ALIT should not have too much problems paying its short term obligations.
ALIT has a Quick ratio (1.18) which is in line with 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

The earnings per share for ALIT have decreased strongly by -23.94% in the last year.
Looking at the last year, ALIT shows a very negative growth in Revenue. The Revenue has decreased by -26.04% in the last year.
The Revenue has been decreasing by -1.79% on average over the past years.
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.
The Revenue is expected to grow by 3.01% on average over the next years.
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

With a Price/Earnings ratio of 10.26, the valuation of ALIT can be described as very reasonable.
Based on the Price/Earnings ratio, ALIT is valued cheaply inside the industry as 87.65% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALIT to the average of the S&P500 Index (26.20), we can say ALIT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.37 indicates a reasonable valuation of ALIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALIT indicates a rather cheap valuation: ALIT is cheaper than 88.89% of the companies listed in the same industry.
ALIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.26
Fwd PE 8.37
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

ALIT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALIT is cheaper than 69.14% of the companies in the same industry.
ALIT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 26.86
EV/EBITDA 10.64
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)1.39
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 2.93%, ALIT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.09, ALIT pays a better dividend. On top of this ALIT pays more dividend than 92.59% of the companies listed in the same industry.
ALIT's Dividend Yield is a higher than the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 2.93%

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 Years0
Div Non Decr Years0
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 (5/29/2025, 8:04:00 PM)

After market: 5.54 0 (0%)

5.54

+0.11 (+2.03%)

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 Owners107.57%
Inst Owner Change-1.81%
Ins Owners3.23%
Ins Owner Change6.94%
Market Cap2.98B
Analysts82.86
Price Target10.64 (92.06%)
Short Float %5.02%
Short Ratio2.51
Dividend
Industry RankSector Rank
Dividend Yield 2.93%
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP-61.76%
Div Incr Years0
Div Non Decr Years0
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)-3.31%
PT rev (3m)-3.31%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)-6.3%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.17%
Valuation
Industry RankSector Rank
PE 10.26
Fwd PE 8.37
P/S 1.28
P/FCF 26.86
P/OCF 13.25
P/B 0.71
P/tB N/A
EV/EBITDA 10.64
EPS(TTM)0.54
EY9.75%
EPS(NY)0.66
Fwd EY11.95%
FCF(TTM)0.21
FCFY3.72%
OCF(TTM)0.42
OCFY7.55%
SpS4.31
BVpS7.86
TBVpS-3.28
PEG (NY)1.39
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 0.7
F-Score6
WACC7.7%
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%