Alignment Healthcare, Inc. (ALHC) stock analysis
Close on Nov 13, 2026Market cap $1.54BP/E 66.9Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Mixed9 of 30 checks passed
Alignment Healthcare passes 9 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 3/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Revenue growing 10%+ a year
Revenue grew 40.2% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 33.3% of total debt.
P/S below the industry
Alignment Healthcare's price-to-sales of 0.31 is below the Accident and Health Insurance and Medical median of 0.81.
Growing faster than the industry
Revenue grew 35.9% over the last twelve months; the Accident and Health Insurance and Medical median is 6.8%.
What to watch
Margin of safety under 20%
The price is 45.6% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $7.36 is above our fair value estimate of $5.05.
Return on equity under 15%
Return on equity was 13.2% over the last twelve months and averaged -69.2% over five years; we look for 15% on both.
High debt
Debt is 117% of shareholders' equity, above the 40% we consider low.
Valuation1/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Alignment Healthcare's P/E of 66.9 is above the Accident and Health Insurance and Medical median of 21.5.
P/S below the industry
Alignment Healthcare's price-to-sales of 0.31 is below the Accident and Health Insurance and Medical median of 0.81.
P/B above the industry
Alignment Healthcare's price-to-book of 5.56 is above the Accident and Health Insurance and Medical median of 2.29.
Trading above fair value
The share price of $7.36 is above our fair value estimate of $5.05.
Margin of safety under 20%
The price is 45.6% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 40.2% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 35.9% over the last twelve months; the Accident and Health Insurance and Medical median is 6.8%.
Guidance issued
The latest outlook (Twelve Months Ending December 31, 2026 Revenue, Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance3/6
Return on equity under 15%
Return on equity was 13.2% over the last twelve months and averaged -69.2% over five years; we look for 15% on both.
Return on assets over 1%
Return on assets was 2.4%; for a bank or insurer, 1% or more is considered good.
Return on equity above the industry
Alignment Healthcare's return on equity of 13.2% is above the Accident and Health Insurance and Medical median of 11.9%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 0.6% over the last twelve months, against a 5-year average of -8.0%.
Net margin below the industry
Alignment Healthcare's net margin of 0.6% is below the Accident and Health Insurance and Medical median of 2.0%.
Financial health3/6
High debt
Debt is 117% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 471% five years ago to 117%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 33.3% of total debt.
Interest not well covered
Operating income covers interest expense 2.6 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.71 times current liabilities.
Bankruptcy risk (Altman Z)
The Altman model does not apply to insurers.
Dividend0/6
No dividend
Alignment Healthcare has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$5.05
The share price is 46% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 21.5× | – | 21.5× | $2.37 | 50% |
| P/B | 5.8× | 9.4× | 2.3× | $7.74 | 50% |
| Fair value | $5.05 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- EV/EBITDA at month end
- Accident and Health Insurance and Medical median 14.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $55.11M
- Value traded per 1% price move
- $20.36M
Downside
High risk
- Typical loss in a bad month
- 41.8%
- Volatility (annualized)
- 72%
- Sharpe ratio, 1 year
- -0.84
- Beta to the S&P 500 (5Y)
- 0.81
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +46.1% | +40.2% | +32.7% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 95.3% | -0.5% | |
| Return on assets | – | – | -0.1% | |
| Current ratio | – | 1.72 | 1.71 | |
| Debt to equity | – | 4.71 | 1.80 | |
| Net debt to EBITDA | – | -6.47× | -5.59× | |
| Interest coverage | – | -0.3× | 0.9× | |
| Capex to revenue | – | – | 0.7% | |
| Diluted shares | – | 0M | 198M |
Cash use needs five years of cash flow figures
Alignment Healthcare does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -0.0% | 4.27× | 6.62× | -0.5% |
| FY2024 | -4.7% | 3.94× | 5.35× | -99.7% |
| FY2023 | -8.1% | 2.98× | 3.10× | -74.9% |
| FY2022 | -10.4% | 2.27× | 2.32× | -55.0% |
| FY2021 | -16.7% | 2.41× | 2.88× | -116.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$724.00K
- Cash generatingOperating cash flow above zero$139.93M
- Return on assets improvedROA up on the prior year-21.6% → -0.1%
- Earnings backed by cashOperating cash flow above net income$139.93M vs -$724.00K
- Less leverageLong-term debt to assets fell41.1% → 30.3%
- Better liquidityCurrent ratio rose1.88 → 1.71
- No dilutionShare count did not rise191M → 198M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose4.57 → 5.05
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