Alignment Healthcare (ALHC) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: N/A
• Average Volume (3M): 3.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 49.12%
• EPS Growth: 43.50%
• Country: US
• Employees: 1,679
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Plans
• EPS (TTM): -0.05
• Shares Outstanding: 197,843,350
• 10 Day Avg. Volume: 3,380,055
• 30 Day Avg. Volume: 3,177,061
• PEG Ratio: 0.43
• Price to Book (P/B): 8.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.80
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: -5.91
• 1Y Price Target: $17.36
• Price Target Upside: 24.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 57 Neutral
• Price Target: $13.50 ▼(-2.88%Downside)

The overall stock score is driven by strong performance in the latest earnings call, which reflects robust growth and improved guidance. However, financial performance remains constrained by ongoing net losses, and technical indicators suggest bearish momentum. Valuation remains a challenge due to negative earnings, despite positive corporate events reflecting strategic confidence.

Positive Factors

Competitive Position

Strong momentum is expected for ALHC due to idiosyncratic advantages and a focus on cost management and member retention.

Financial Performance

ALHC handily beat revenue and EBITDA estimates and raised 2025 guidance above expectations.

Growth Potential

Total membership increased by 32%, indicating strong growth potential for ALHC.

Negative Factors

Industry Concerns

Investors remain somewhat cautious on managed care names following the first-quarter earnings cycle, especially given recent hiccups at larger-cap MA plans.

Leadership Changes

CFO Thomas Freeman stepping down is seen as a loss but not a red flag for the company.

Market Sentiment

Shares traded off given the announced CFO transition and nominal guidance increase.

Alignment Healthcare Business Overview & Revenue Model

Company Description

Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform. It provides customized health care in the United States to seniors and those who need it through its Medicare advantage plans. The company owns Medicare advantage plans in the states of California, North Carolina, and Nevada. It also coordinates and provides covered health care services, including professional, institutional, and ancillary services to members enrolled in certain benefit plans of unaffiliated Medicare Advantage Health Maintenance Organizations. The company was founded in 2013 and is based in Orange, California.

How the Company Makes Money

Alignment Healthcare makes money primarily through its Medicare Advantage plans. These plans are offered to eligible seniors and are funded by the federal government's Medicare program. The company generates revenue by receiving per-member-per-month payments from the Centers for Medicare & Medicaid Services (CMS) based on the number of enrolled members in its plans. These payments are risk-adjusted, meaning they vary based on the health status and specific needs of the members. Additionally, Alignment Healthcare may earn revenue through partnerships with healthcare providers and by offering supplemental insurance plans or enhanced services that members can opt into for additional fees. The company's focus on technology and analytics also helps in managing costs efficiently and optimizing patient care, contributing to its financial performance.

Alignment Healthcare Financial Statement Overview

Summary

Alignment Healthcare shows strong revenue growth and operational efficiency improvements with a 38.9% gross profit margin. However, the company faces challenges in achieving profitability, operating at a net loss with negative EBIT and EBITDA margins. The balance sheet is stable with low leverage, though equity levels are modest. Cash flow improvements are notable, reflecting better cash management.

Income Statement

Alignment Healthcare's revenue shows a strong growth trajectory, with a TTM revenue increase of 11% from the previous year. However, the company continues to operate at a net loss, reflected in negative EBIT and EBITDA margins, indicating challenges in achieving profitability. The gross profit margin has improved significantly, reaching 38.9% TTM, which demonstrates some operational efficiency improvements.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio of 0.07 TTM, indicating conservative leverage. However, the equity ratio is only 12.1%, suggesting limited equity financing. The return on equity remains negative due to net losses, impacting overall financial stability.

Cash Flow

Positive trends are seen in cash flow, with a positive operating cash flow TTM and a significant improvement in free cash flow. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the free cash flow growth rate is not calculable due to negative previous free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.00B	2.70B	1.82B	1.43B	1.17B	959.22M
Gross Profit	347.34M	296.69M	201.03M	184.28M	128.73M	166.23M
EBITDA	-40.24M	-77.59M	-105.30M	-113.53M	-161.81M	9.47M
Net Income	-90.63M	-128.03M	-148.02M	-149.64M	-212.96M	-39.13M
Balance Sheet
Total Assets	895.62M	782.06M	591.88M	633.86M	630.89M	338.50M
Cash, Cash Equivalents and Short-Term Investments	479.54M	470.65M	318.82M	409.55M	466.60M	207.31M
Total Debt	7.65M	329.26M	170.79M	164.60M	157.59M	154.44M
Total Liabilities	786.62M	681.11M	433.81M	394.56M	324.84M	307.89M
Stockholders Equity	108.13M	99.85M	156.95M	238.13M	306.04M	30.61M
Cash Flow
Free Cash Flow	19.07M	-6.65M	-95.18M	-69.20M	-97.14M	-8.15M
Operating Cash Flow	57.62M	34.77M	-59.19M	-45.43M	-78.78M	7.56M
Investing Cash Flow	-6.98M	39.19M	-147.26M	-28.22M	-20.82M	-16.36M
Financing Cash Flow	156.56M	156.03M	105.00K	16.59M	360.13M	130.12M

Alignment Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALHC, the sentiment is Negative. The current price of 13.9 is below the 20-day moving average (MA) of 14.09, below the 50-day MA of 14.86, and below the 200-day MA of 14.08, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 49.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALHC.

Alignment Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	77 Outperform	$28.66B	16.79	10.09%	1.50%	10.09%	-12.18%
MOH	72 Outperform	$12.86B	11.04	26.72%	―	16.71%	12.23%
CNC	71 Outperform	$16.22B	4.93	12.59%	―	8.85%	33.30%
OSCR	70 Outperform	$4.21B	57.72	10.43%	―	54.26%	―
ALHC	57 Neutral	$2.71B	―	-75.82%	―	49.12%	43.50%
Sector *	57 Neutral	7.56B	6.13	-28.19%	5.55%	26.41%	6.62%
CLOV	50 Neutral	$1.55B	―	-7.75%	―	-32.45%	80.24%

Alignment Healthcare Corporate Events

Alignment Healthcare Holds Annual Stockholder Meeting

At the annual meeting held on June 5, 2025, Alignment Healthcare‘s stockholders voted on several key proposals. Three Class I directors were elected to serve until 2028, Deloitte & Touche LLP’s appointment as the accounting firm for 2025 was ratified, and the executive compensation plan was approved, reflecting confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (ALHC) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Alignment Healthcare stock, see the ALHC Stock Forecast page.

Alignment Healthcare’s Chief Experience Officer Resigns

On April 9, 2025, Hakan Kardes, the Chief Experience Officer of Alignment Healthcare, resigned to pursue other professional opportunities. His resignation was effective immediately, but he will remain with the company until May 16, 2025, to assist in transitioning his duties to other senior employees.