Alignment Healthcare (ALHC) AI Stock Analysis

• Market Cap: $2.66B
• Dividend Yield: N/A
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 49.46%
• EPS Growth: 66.89%
• Country: US
• Employees: 1,679
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Healthcare Plans
• EPS (TTM): 0.07
• Shares Outstanding: 198,031,420
• 10 Day Avg. Volume: 5,019,225
• 30 Day Avg. Volume: 3,648,027
• PEG Ratio: 1.10
• Price to Book (P/B): 21.50
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -322.87
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 8.06
• Enterprise Value/Ebitda: 2.12K
• 1Y Price Target: $16.75
• Price Target Upside: 24.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 55 Neutral
• Price Target: $14.00 ▲(4.40% Upside)

The overall score is influenced most significantly by the strong earnings call, indicating positive growth and raised guidance. However, financial performance struggles with profitability and valuation concerns due to a negative P/E ratio lower the overall attractiveness. Technical analysis suggests mixed signals with short-term bullishness but longer-term bearish trends.

Positive Factors

Earnings

Alignment Healthcare reported stellar second quarter results, highlighted by $46 million for quarterly adjusted EBITDA, marking 65% upside versus Street expectations.

Financial Performance

ALHC reported 2Q adjusted EBITDA of $45.9 million, materially exceeding guidance and consensus expectations.

Market Position

ALHC has been able to take market share from incumbents during a period of industry dislocation, highlighting its competitive advantage.

Negative Factors

Leadership Changes

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

Market Sentiment

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

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 positive revenue growth and operational efficiency improvements, but struggles with profitability due to net losses and negative EBIT and EBITDA margins. The balance sheet is stable with low leverage, yet equity levels are modest. Cash flow improvements are notable but consistent profitability remains a challenge.

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	3.34B	2.70B	1.82B	1.43B	1.17B	959.22M
Gross Profit	404.91M	296.69M	201.03M	184.28M	128.73M	166.23M
EBITDA	1.54M	-77.44M	-105.30M	-113.53M	-161.81M	9.47M
Net Income	-50.95M	-128.03M	-148.02M	-149.55M	-195.29M	-22.93M
Balance Sheet
Total Assets	1.00B	782.06M	591.88M	633.86M	630.89M	338.50M
Cash, Cash Equivalents and Short-Term Investments	503.78M	470.65M	318.82M	409.55M	466.60M	207.31M
Total Debt	329.66M	329.26M	170.79M	164.60M	157.59M	154.44M
Total Liabilities	859.18M	681.11M	433.81M	394.56M	324.84M	307.89M
Stockholders Equity	140.97M	99.85M	156.95M	238.13M	306.04M	30.61M
Cash Flow
Free Cash Flow	28.41M	-6.65M	-95.18M	-69.20M	-97.14M	-8.15M
Operating Cash Flow	63.23M	34.77M	-59.19M	-45.43M	-78.78M	7.56M
Investing Cash Flow	-40.61M	39.19M	-147.26M	-28.22M	-20.82M	-16.36M
Financing Cash Flow	108.67M	156.03M	105.00K	16.59M	360.13M	130.12M

Alignment Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.41
• 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 Positive. The current price of 13.41 is above the 20-day moving average (MA) of 12.88, below the 50-day MA of 13.86, and below the 200-day MA of 14.21, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 39.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALHC.

Alignment Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	79 Outperform	$30.61B	19.53	9.03%	1.39%	9.88%	-7.25%
OSCR	66 Neutral	$3.52B	49.61	-14.04%	―	48.29%	-1436.25%
MOH	65 Neutral	$8.41B	7.51	23.93%	―	16.12%	10.99%
CNC	58 Neutral	$12.72B	6.23	7.50%	―	12.96%	-23.25%
ALHC	55 Neutral	$2.66B	―	-38.50%	―	49.46%	66.89%
Sector *	51 Neutral	$7.39B	0.42	-62.86%	2.37%	15.61%	-1.93%
CLOV	50 Neutral	$1.45B	―	-12.88%	―	-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.