Alight (ALIT) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: 7.58%
• Average Volume (3M): 14.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -12.37%
• EPS Growth: -754.18%
• Country: US
• Employees: 9,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 522,778,800
• 10 Day Avg. Volume: 14,134,225
• 30 Day Avg. Volume: 14,128,153
• PEG Ratio: 0.41
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 28.85
• Enterprise Value/Market Cap: 3.04
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: -2.44
• 1Y Price Target: $5.67
• Price Target Upside: 168.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): $2.27B

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-5.21% Downside)

Alight's overall stock score reflects significant financial and operational challenges, with profitability and revenue growth being major concerns. While technical indicators and valuation metrics suggest caution, strategic initiatives in AI and partnerships, along with a strong dividend yield, provide some optimism. The new CEO appointment is a positive development, but immediate improvements are necessary to enhance the company's financial health.

Positive Factors

Strong Free Cash Flow

The significant growth in free cash flow indicates improved cash generation ability, providing financial flexibility for strategic investments and debt management.

AI and Technology Advancements

Investments in AI and technology enhance operational efficiency and client service, positioning Alight to better compete in the evolving HR tech landscape.

New Leadership

The addition of experienced leadership is expected to drive strategic growth and improve client partnerships, enhancing Alight's competitive position.

Negative Factors

Revenue Decline

The decline in revenue reflects challenges in maintaining growth, which could impact long-term profitability and market competitiveness.

Guidance Reduction

Lowered revenue guidance indicates potential difficulties in achieving growth targets, raising concerns about future financial performance and investor confidence.

Non-Cash Goodwill Impairment

The substantial goodwill impairment charge suggests a reassessment of asset value, potentially impacting balance sheet strength and future earnings.

Alight Business Overview & Revenue Model

Company Description

Alight (ALIT) is a leading provider of technology-enabled health, wealth, and human capital solutions. The company specializes in delivering comprehensive benefits administration, cloud-based HR and payroll services, and workforce management solutions. Alight serves a diverse range of clients, including large enterprises and government organizations, by leveraging data analytics and innovative technology to enhance employee engagement and optimize operational efficiencies.

How the Company Makes Money

Alight generates revenue primarily through its service offerings, which include benefits administration, payroll processing, and human capital management services. The company operates on a subscription-based model, charging clients a recurring fee for access to its platforms and services. Additionally, Alight earns revenue from consulting services related to workforce and benefits strategy. Key partnerships with technology providers and integrations with major HR systems enhance its service delivery, while ongoing client relationships contribute to stable revenue streams. The company's focus on scaling its digital solutions and expanding its service offerings also plays a crucial role in driving growth and profitability.

Alight Financial Statement Overview

Summary

Alight faces significant financial challenges, with negative net profit margins and declining revenue growth. Despite a stable gross profit margin, the company struggles with profitability, as indicated by negative EBIT and EBITDA margins. The balance sheet shows low leverage but negative return on equity, while cash flow improvements provide some optimism.

Income Statement

Alight's income statement reveals significant challenges, with negative net profit margins and declining revenue growth. The TTM (Trailing-Twelve-Months) data shows a drastic revenue decline of 95.2%, and the net profit margin is severely negative at -93.7%. Despite a stable gross profit margin around 34%, the company struggles with profitability, as indicated by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.01 in the TTM period, indicating low leverage. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio is not explicitly calculated, but the company maintains a significant equity base compared to its total assets.

Cash Flow

Cash flow analysis indicates some positive trends, with a significant free cash flow growth of 71.1% in the TTM period. The operating cash flow to net income ratio is 0.43, suggesting some ability to generate cash from operations despite negative net income. The free cash flow to net income ratio is 0.69, indicating a relatively strong cash position compared to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.33B	3.41B	3.13B	2.92B	2.73B
Gross Profit	824.00M	794.00M	1.14B	996.00M	693.00M	834.00M
EBITDA	-1.40B	350.00M	186.00M	476.00M	481.00M	431.00M
Net Income	-2.16B	-157.00M	-345.00M	-62.00M	-60.00M	-103.00M
Balance Sheet
Total Assets	5.54B	8.19B	10.78B	11.23B	10.99B	6.96B
Cash, Cash Equivalents and Short-Term Investments	205.00M	343.00M	358.00M	250.00M	372.00M	506.00M
Total Debt	2.01B	2.16B	2.92B	3.00B	3.11B	4.36B
Total Liabilities	3.53B	3.88B	6.04B	6.15B	6.06B	6.27B
Stockholders Equity	2.00B	4.31B	4.46B	4.44B	4.14B	683.00M
Cash Flow
Free Cash Flow	243.00M	131.00M	246.00M	138.00M	1.00M	143.00M
Operating Cash Flow	354.00M	252.00M	386.00M	286.00M	115.00M	233.00M
Investing Cash Flow	-128.00M	836.00M	-159.00M	-235.00M	-1.91B	-142.00M
Financing Cash Flow	-356.00M	-1.07B	-231.00M	54.00M	2.34B	463.00M

Alight Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 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 ALIT, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.54, and below the 200-day MA of 4.31, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 26.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALIT.

Alight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRZE	76 Outperform	$3.92B	―	-22.05%	―	22.95%	3.12%
BLKB	70 Outperform	$2.98B	-12.09	-78.53%	―	-1.17%	-597.89%
GBTG	62 Neutral	$4.13B	356.25	0.76%	―	5.71%	―
CALX	61 Neutral	$3.71B	―	-0.91%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALKT	61 Neutral	$2.36B	―	-12.74%	―	30.72%	9.70%
ALIT	47 Neutral	$1.13B	―	-66.86%	7.58%	-12.37%	-754.18%

Alight Corporate Events

Alight CEO Dave Guilmette to Step Down

Alight, Inc. has announced that Dave Guilmette will step down from his roles as CEO and Vice Chair of the Board of Directors at the end of 2025. In connection with his departure, a Separation Agreement was reached, which includes a potential three-month consultancy period for Guilmette to aid in the company’s 2026 business plan transition, with compensation and continued stock vesting.

Alight Announces New CEO Appointment Effective January 2026

On November 24, 2025, Alight, Inc. announced that Rohit Verma will succeed Dave Guilmette as Chief Executive Officer and a member of the Board, effective January 1, 2026. Verma, who has a proven track record of delivering growth and service excellence at Crawford & Company, is expected to lead Alight through enhanced innovation and client partnership. Guilmette’s departure is amicable and not due to any disagreements with the company, and his leadership has strengthened Alight’s operations and product innovations.

Alight Seeks Approval to Declassify Board

On November 5, 2025, Alight announced its Board of Directors’ decision to seek stockholder approval for declassifying the Board at the 2026 annual meeting. In its third quarter 2025 results, Alight reported a 4% revenue decrease to $533 million, primarily due to lower project revenue and the finalization of a commercial agreement related to a past divestiture. Despite a significant non-cash goodwill impairment charge impacting net loss, the company improved its adjusted EBITDA and expanded relationships with major clients like MetLife and Cintas. The announcement reflects Alight’s strategic focus on enhancing client outcomes and strengthening its competitive position through AI and automation investments.