Alignment Healthcare (ALHC) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 49.46%
• EPS Growth: 66.89%
• Country: US
• Employees: 1,679
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 0.02
• Shares Outstanding: 198,031,420
• 10 Day Avg. Volume: 1,905,278
• 30 Day Avg. Volume: 2,936,636
• 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: 0.90
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 8.06
• Enterprise Value/Ebitda: 2.12K
• 1Y Price Target: $19.56
• Price Target Upside: 14.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 57 Neutral
• Price Target: $17.50 ▲(2.22% Upside)

Alignment Healthcare's overall score reflects strong earnings call performance and technical momentum, offset by ongoing profitability challenges and valuation concerns. The company's strategic growth and operational improvements are promising, but consistent profitability remains a key hurdle.

Positive Factors

Revenue Growth

Strong revenue growth driven by increased membership indicates robust demand for services and strengthens the company's market position.

Improved Star Ratings

Consistently high star ratings enhance the company's reputation and can lead to higher enrollment and better reimbursement rates.

Cash Flow Improvements

Improved cash flow and liquidity position enhance financial stability and provide flexibility for future investments and growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with negative margins may hinder long-term financial health and limit reinvestment capabilities.

Part D Margin Pressures

Margin pressures in Part D could impact overall profitability and require strategic adjustments to maintain financial performance.

Equity Financing Limitations

Limited equity financing options may restrict the company's ability to raise capital for expansion or to buffer against financial downturns.

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 challenges in achieving profitability with negative EBIT and EBITDA margins. The balance sheet is stable with low leverage, and 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	3.34B	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: 17.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 17.12 is below the 20-day moving average (MA) of 17.37, above the 50-day MA of 16.85, and above the 200-day MA of 15.63, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 62.19 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	―	$34.35B	22.46	9.03%	1.21%	9.88%	-7.25%
CNC	―	$17.21B	―	-21.93%	―	14.92%	-286.72%
MOH	―	$7.77B	9.37	19.71%	―	13.71%	-18.02%
ALHC	―	$3.61B	―	-38.50%	―	49.46%	66.89%
OSCR	―	$4.89B	―	-14.04%	―	48.29%	-1436.25%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLOV	―	$1.78B	―	-12.59%	―	-4.87%	66.16%

Alignment Healthcare Corporate Events

Alignment Healthcare Discusses Strategy and Medicare Ratings

Senior leaders from Alignment Healthcare met with investors and analysts on September 9-10, 2025, to discuss the company’s strategy, market position, and recent results. During the meeting, they highlighted the preliminary CMS Medicare Advantage Star ratings for 2026, expecting nearly 100% of their membership to be in 4 Star or higher plans, which underscores their commitment to quality and could enhance their competitive positioning.

The most recent analyst rating on (ALHC) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Alignment Healthcare stock, see the ALHC Stock Forecast page.

Alignment Healthcare’s Earnings Call Highlights Growth and Challenges

The recent earnings call for Alignment Healthcare, Inc. exuded a largely positive sentiment, showcasing impressive strides in membership growth, revenue, and profitability. The company also raised its guidance, signaling confidence in its future trajectory. However, challenges such as rising drug costs and regulatory changes remain on the horizon.

Alignment Healthcare Reports Strong Q2 2025 Results

Alignment Healthcare, Inc., a company operating in the Medicare Advantage sector, focuses on providing high-quality, affordable care for seniors through its innovative care model and technology. The company recently announced its second quarter 2025 financial results, showcasing significant growth and surpassing its own guidance across key metrics such as membership, revenue, adjusted gross profit, and adjusted EBITDA.