Alignment Healthcare, Inc. (ALHC)
NASDAQ:ALHC
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Alignment Healthcare
(NASDAQ:ALHC)
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Rating:62Neutral
Price Target:
$20.50
▼(-2.29% Downside)
Action:Reiterated
Date:06/10/26
ALHC scores mid-range primarily due to strong cash-flow momentum and sharply reduced leverage, supported by a confident, raised-growth outlook from the latest earnings call. The score is held back by very thin profitability/gross-margin pressure, weak-to-neutral technical momentum, and a high P/E with no dividend support.
Positive Factors
Cash generation and free cash flow improvement
Alignment’s material rebound in operating and free cash flow to the mid-hundreds of millions supports durable funding for network investments, technology and capex, reduces refinancing risk, and gives management flexibility to scale benefit offerings and absorb regulatory timing swings.
Negative Factors
Thin profitability and compressed gross margins
Despite a profitability turnaround to near break‑even, margins remain very thin and gross margin contraction indicates limited cushion against utilization, pricing or policy shocks; persistently low margins constrain long‑term return on equity and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and free cash flow improvement
Alignment’s material rebound in operating and free cash flow to the mid-hundreds of millions supports durable funding for network investments, technology and capex, reduces refinancing risk, and gives management flexibility to scale benefit offerings and absorb regulatory timing swings.
Read all positive factors
Alignment Healthcare (ALHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.52B
Dividend YieldN/A
Average Volume (3M)7.12M
Price to Earnings (P/E)226.7
Beta (1Y)0.72
Revenue Growth41.81%
EPS GrowthN/A
CountryUS
Employees1,679
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)0.10
Shares Outstanding206,733,830
10 Day Avg. Volume7,351,627
30 Day Avg. Volume7,123,098
Financial Highlights & Ratios
PEG Ratio54.31
Price to Book (P/B)21.81
Price to Sales (P/S)0.99
P/FCF Ratio34.56
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit6.35
Enterprise Value/Ebitda50.39
Forecast
1Y Price Target
$23.29Price Target Upside10.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.18
Revenue Forecast (FY)$5.19B
Alignment Healthcare Business Overview & Revenue Model
Company Description
Alignment Healthcare, Inc. is a technology-driven Medicare Advantage provider operating a healthcare platform focused squarely on the consumer. This organization delivers personalized medical services across the United States, primarily for elderl...
How the Company Makes Money
Alignment Healthcare primarily makes money by operating Medicare Advantage (MA) health plans and receiving recurring, per-member-per-month payments from the U.S. government (Centers for Medicare & Medicaid Services, CMS) for each enrolled member. ...
Alignment Healthcare Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlights robust top-line growth (membership +31%, revenue +33%), strong margin expansion (adjusted EBITDA up 88%), improved efficiency (SG&A as % of revenue down ~60 bps) and strengthened liquidity, alongside tangible operational progress in automation and AI. The main negatives were a one-time internal workflow error that temporarily increased inpatient admissions and some short-term utilization pressure tied to targeting higher-acuity members, plus industry-level uncertainty from modest CMS rate increases versus underlying health care trend. Management portrayed these issues as diagnosed and remediated or baked into guidance, and raised full-year guidance and tightened ranges, indicating confidence in execution and outlook.Positive Updates
Strong Membership Growth
Health plan membership of 284,800 representing ~31% year-over-year growth, driving scale and supporting revenue expansion.
Negative Updates
One-Time Observation/Inpatient Authorization Workflow Issue
A CMS rule change required process adjustments; an internal workflow error in January caused some authorizations to be paid at full acute rates rather than observation rates, increasing inpatient admissions per 1,000 into the high 150s and producing a multi-million dollar drag in Q1. Management stated the issue was corrected by end of February and absorbed within Q1 results.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Membership Growth
Health plan membership of 284,800 representing ~31% year-over-year growth, driving scale and supporting revenue expansion.
Read all positive updates
Company Guidance
Alignment's 2026 guidance: full-year membership 294,000–299,000, revenue $5.16B–$5.21B (midpoint ≈ $5.185B, ~31% YoY), adjusted gross profit $620M–$650M and adjusted EBITDA $138M–$163M (company raised the low end of adjusted gross profit and adjusted EBITDA by $5M each); Q2 guidance calls for membership 288,000–290,000, revenue $1.30B–$1.32B, adjusted gross profit $167M–$177M and adjusted EBITDA $50M–$60M. Management expects ~60% of full‑year EBITDA to be generated in the first half (vs ~55% in 1H‑2025) and is targeting first‑half year‑over‑year improvements of roughly 40 bps MBR, 40 bps SG&A and 90–100 bps EBITDA margin expansion, while assuming higher inpatient admissions per 1,000 (mix-related) and no new‑member final suite pickup in the outlook.Alignment Healthcare Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.26B | 3.95B | 2.70B | 1.82B | 1.43B | 1.17B |
| Gross Profit | 527.01M | 488.56M | 296.69M | 201.03M | 184.28M | 128.73M |
| EBITDA | 66.42M | 45.32M | -77.44M | -105.30M | -113.53M | -161.81M |
| Net Income | 19.81M | -724.00K | -128.03M | -148.02M | -149.55M | -195.29M |
Balance Sheet | ||||||
| Total Assets | 1.26B | 1.07B | 782.06M | 591.88M | 633.86M | 630.89M |
| Cash, Cash Equivalents and Short-Term Investments | 1.41B | 577.94M | 470.65M | 318.82M | 409.55M | 466.60M |
| Total Debt | 329.97M | 338.07M | 329.26M | 170.79M | 164.60M | 157.59M |
| Total Liabilities | 1.05B | 886.51M | 681.11M | 433.81M | 394.56M | 324.84M |
| Stockholders Equity | 206.88M | 179.28M | 99.85M | 156.95M | 238.13M | 306.04M |
Cash Flow | ||||||
| Free Cash Flow | 236.63M | 113.15M | -6.65M | -95.18M | -69.20M | -97.14M |
| Operating Cash Flow | 251.99M | 139.93M | 34.77M | -59.19M | -45.43M | -78.78M |
| Investing Cash Flow | -10.93M | -14.97M | 39.19M | -147.26M | -28.22M | -20.82M |
| Financing Cash Flow | 18.38M | 18.04M | 156.03M | 105.00K | 16.59M | 360.13M |
Alignment Healthcare Technical Analysis
Positive
20.98
Price Trends
18.68
Positive
19.06
Positive
18.71
Positive
Market Momentum
0.96
Negative
69.64
Neutral
92.86
Negative
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 20.98 is above the 20-day moving average (MA) of 17.31, above the 50-day MA of 18.68, and above the 200-day MA of 18.71, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 69.64 is Neutral, neither overbought nor oversold. The STOCH value of 92.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALHC.
Alignment Healthcare Risk Analysis
Alignment Healthcare disclosed 62 risk factors in its most recent earnings report. Alignment Healthcare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alignment Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $8.56B | -214.79 | -3.27% | ― | 31.95% | -180.28% | |
69 Neutral | $2.63B | -45.85 | -17.08% | ― | 48.75% | -118.24% | |
63 Neutral | $30.13B | -4.66 | -28.72% | ― | 17.02% | -294.77% | |
63 Neutral | $43.30B | 38.41 | 6.19% | 1.38% | 14.08% | -33.82% | |
62 Neutral | $4.52B | 226.65 | 11.50% | ― | 41.81% | ― | |
57 Neutral | $10.18B | 53.00 | 4.44% | ― | 7.72% | -83.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ALHC
Alignment Healthcare
21.86
7.90
56.59%
CNC
Centene
61.02
6.62
12.17%
HUM
Humana
360.65
124.75
52.89%
MOH
Molina Healthcare
195.37
-98.64
-33.55%
CLOV
Clover Health Investments
5.00
1.98
65.56%
OSCR
Oscar Health
28.40
7.18
33.84%
Alignment Healthcare Corporate Events
Executive/Board ChangesShareholder Meetings
Alignment Healthcare shareholders back board, pay and auditor
Positive
Jun 9, 2026
At its virtual annual meeting on June 4, 2026, Alignment Healthcare, Inc. reported that shareholders elected three Class II directors—Jody Bilney, David Hodgson and Jacqueline Kosecoff—to new three-year terms ending with the 2029 annua...
Business Operations and StrategyExecutive/Board Changes
Alignment Healthcare Elevates Founder John Kao to Chairman
Positive
May 12, 2026
On May 6, 2026, Alignment Healthcare’s board amended its bylaws to formally create the role of vice chair, empowering that position to preside over board meetings in the chairman’s absence, a move that refines the company’s gover...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.