Alignment Healthcare, Inc. Fundamental Analysis (NASDAQ: ALHC)
Alignment Healthcare, Inc. Fundamental Analysis (NASDAQ: ALHC)
Alignment Healthcare, Inc. (NASDAQ: ALHC) shows moderate financial fundamentals with a PE ratio of 67.17, profit margin of 0.89%, and ROE of 20.02%. The company generates $4.6B in annual revenue with strong year-over-year growth of 46.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ALHC's fundamental strength across five key dimensions:
Efficiency Score
WeakALHC struggles to generate sufficient returns from assets.
Valuation Score
ModerateALHC shows balanced valuation metrics.
Growth Score
ExcellentALHC delivers strong and consistent growth momentum.
Financial Health Score
ModerateALHC shows balanced financial health with some risks.
Profitability Score
ModerateALHC maintains healthy but balanced margins.
Key Financial Metrics
Is ALHC Expensive or Cheap?
P/E Ratio
ALHC trades at 67.17 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALHC's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Alignment Healthcare, Inc. at 10.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 36.32 times EBITDA. This signals the market has high growth expectations.
How Well Does ALHC Make Money?
Net Profit Margin
For every $100 in sales, Alignment Healthcare, Inc. keeps $0.89 as profit after all expenses.
Operating Margin
Core operations generate 1.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.02 in profit for every $100 of shareholder equity.
ROA
Alignment Healthcare, Inc. generates $3.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alignment Healthcare, Inc. generates limited operating cash flow of $205.54M, signaling weaker underlying cash strength.
Free Cash Flow
Alignment Healthcare, Inc. produces free cash flow of $205.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
ALHC converts 7.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
67.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ALHC Stacks Against Its Sector Peers
| Metric | ALHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 67.17 | 31.56 | Worse (Expensive) |
| ROE | 20.02% | 441.00% | Weak |
| Net Margin | 0.89% | 18300.00% | Weak |
| Debt/Equity | 1.25 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.70 | 5.63 | Neutral |
| ROA | 3.18% | 1512.00% | Weak |
ALHC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alignment Healthcare, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
289.35%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
97.01%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1650.33%
Industry Style: Defensive, Growth, Innovation
High Growth