Alignment Healthcare (ALHC) AI Stock Analysis

• Market Cap: $3.88B
• Dividend Yield: N/A
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• 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: 2,611,672
• 30 Day Avg. Volume: 2,342,079
• 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: 1.02
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 8.80
• Enterprise Value/Ebitda: 137.01
• 1Y Price Target: $19.92
• Price Target Upside: 2.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.11
• Revenue Forecast (FY): $3.94B

• Rating: 60 Neutral
• Price Target: $20.50 ▲(5.89% Upside)

Alignment Healthcare's overall stock score is driven by strong earnings call performance and positive technical indicators. However, the score is moderated by ongoing profitability challenges and valuation concerns. The company's strategic growth and operational improvements are promising, but caution is advised due to industry disruptions and seasonal challenges.

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 (ALHC) is a technology-enabled healthcare company focused on providing innovative and personalized health services to Medicare beneficiaries. The company operates primarily in the healthcare sector, offering a range of services including care management, chronic disease management, and integrated healthcare solutions aimed at improving patient outcomes while reducing costs. With a commitment to value-based care, Alignment Healthcare leverages data analytics and technology to enhance the patient experience and streamline healthcare delivery.

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 is experiencing revenue growth and operational improvements, but continues to face profitability challenges. The balance sheet is stable with low leverage, and cash flow improvements are notable.

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: 19.36
• 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 19.36 is above the 20-day moving average (MA) of 18.27, above the 50-day MA of 17.60, and above the 200-day MA of 16.11, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 65.30 is Neutral, neither overbought nor oversold. The STOCH value of 39.86 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	$8.58B	10.44	19.71%	―	13.71%	-18.02%
HUM	69 Neutral	$32.29B	25.16	7.15%	1.32%	9.87%	-5.58%
ALHC	60 Neutral	$3.88B	―	-15.06%	―	47.39%	85.35%
CNC	58 Neutral	$19.89B	―	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLOV	50 Neutral	$1.40B	―	-16.90%	―	15.23%	38.79%
OSCR	49 Neutral	$4.20B	―	-22.32%	―	37.38%	-912.18%

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.