Alignment Healthcare (ALHC) AI Stock Analysis

• Market Cap: $4.35B
• Dividend Yield: N/A
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 47.39%
• EPS Growth: 85.35%
• Country: US
• Employees: 1,679
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 0.02
• Shares Outstanding: 200,091,740
• 10 Day Avg. Volume: 2,135,153
• 30 Day Avg. Volume: 2,449,681
• 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: 0.73
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 7.05
• Enterprise Value/Ebitda: 109.75
• 1Y Price Target: $22.71
• Price Target Upside: 4.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $22.50 ▲(3.50% Upside)

ALHC scores highest on improving operating momentum and cash generation, reinforced by a bullish technical setup and very positive guidance/earnings call. The overall score is held back by elevated leverage and a still-unprofitable earnings profile, which also makes valuation metrics (negative P/E, no dividend) unattractive.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful adoption of services, enhancing long-term business prospects.

Membership Growth

Increasing membership reflects effective market penetration and customer retention, supporting sustained revenue streams.

High Star Ratings

High star ratings enhance competitive positioning and can lead to increased enrollment and revenue from quality bonuses.

Negative Factors

Profitability Challenges

Ongoing net losses and negative margins indicate challenges in achieving profitability, which may affect long-term financial health.

Industry Disruption

Industry disruptions could impact growth and profitability, requiring strategic adjustments to maintain market position.

Seasonal Challenges

Seasonal challenges may lead to increased costs and operational pressures, affecting short-term financial performance.

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 generates revenue primarily through its Medicare Advantage plans, which are funded by the federal government. The company receives monthly premiums from the Centers for Medicare & Medicaid Services (CMS) for each enrolled member, based on a risk-adjusted payment model. Additionally, ALHC may earn supplemental revenue through care coordination and management services, as well as partnerships with healthcare providers and hospitals that enhance service delivery and patient outcomes. The company’s focus on value-based care, which emphasizes quality and efficiency, allows it to potentially benefit from shared savings programs and incentive structures aligned with improving patient health while controlling costs.

Alignment Healthcare Financial Statement Overview

Summary

Alignment Healthcare shows strong revenue growth and operational efficiency improvements, but continues to face profitability challenges with negative EBIT and EBITDA margins. The balance sheet is stable with low leverage, and cash flow improvements are notable, though 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	3.64B	2.70B	1.82B	1.43B	1.17B	959.22M
Gross Profit	451.60M	296.69M	201.03M	184.28M	128.73M	166.23M
EBITDA	29.02M	-77.44M	-105.30M	-113.53M	-161.81M	9.47M
Net Income	-20.81M	-128.03M	-148.02M	-149.55M	-195.29M	-22.93M
Balance Sheet
Total Assets	1.10B	782.06M	591.88M	633.86M	630.89M	338.50M
Cash, Cash Equivalents and Short-Term Investments	644.08M	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	940.74M	681.11M	433.81M	394.56M	324.84M	307.89M
Stockholders Equity	161.87M	99.85M	156.95M	238.13M	306.04M	30.61M
Cash Flow
Free Cash Flow	172.31M	-6.65M	-95.18M	-69.20M	-97.14M	-8.15M
Operating Cash Flow	181.59M	34.77M	-59.19M	-45.43M	-78.78M	7.56M
Investing Cash Flow	-13.73M	39.19M	-147.26M	-28.22M	-20.82M	-16.36M
Financing Cash Flow	109.62M	156.03M	105.00K	16.59M	360.13M	130.12M

Alignment Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 21.74 is above the 20-day moving average (MA) of 20.31, above the 50-day MA of 18.83, and above the 200-day MA of 16.52, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.41 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
MOH	71 Outperform	$9.71B	11.71	19.71%	―	13.71%	-18.02%
HUM	69 Neutral	$32.97B	25.69	7.15%	1.38%	9.87%	-5.58%
ALHC	67 Neutral	$4.35B	-186.65	-15.06%	―	47.39%	85.35%
CNC	58 Neutral	$22.69B	-4.27	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLOV	48 Neutral	$1.45B	-24.27	-16.90%	―	15.23%	38.79%
OSCR	45 Neutral	$4.42B	-14.84	-22.32%	―	37.38%	-912.18%

Alignment Healthcare Corporate Events

Alignment Healthcare Reports Strong Medicare Advantage Membership Growth

On January 12, 2026, Alignment Healthcare reported that its Medicare Advantage health plan membership rose 31% year over year to approximately 275,300 as of January 1, 2026, extending a roughly 30% compounded annual growth rate since its 2021 IPO and underscoring continued momentum in the MA market. Following a strong 2026 annual enrollment period, the company guided to 290,000 to 296,000 members by year‑end 2026 and said it expects consensus adjusted EBITDA of about $145 million in 2026 to fall within its forthcoming full‑year guidance range, while reaffirming its previously issued 2025 outlook for membership, revenue, adjusted gross profit and adjusted EBITDA; management highlighted that 100% of members remain in plans rated 4 stars or higher for the second consecutive year, reinforcing Alignment’s quality positioning and suggesting a supportive backdrop for continued scalable growth and shareholder value creation.

The most recent analyst rating on (ALHC) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Alignment Healthcare stock, see the ALHC Stock Forecast page.