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ALIGHT INC - CLASS A (ALIT) Stock Fundamental Analysis

NYSE:ALIT - New York Stock Exchange, Inc. - US01626W1018 - Common Stock

6.79  0 (0%)

After market: 6.79 0 (0%)

Fundamental Rating

3

Overall ALIT gets a fundamental rating of 3 out of 10. We evaluated ALIT against 82 industry peers in the Professional Services industry. Both the profitability and financial health of ALIT have multiple concerns. ALIT has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

ALIT had positive earnings in the past year.
ALIT had a positive operating cash flow in the past year.
ALIT had negative earnings in 4 of the past 5 years.
ALIT had a positive operating cash flow in each of the past 5 years.
ALIT Yearly Net Income VS EBIT VS OCF VS FCFALIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of -3.95%, ALIT is doing worse than 74.68% of the companies in the same industry.
ALIT has a worse Return On Equity (-7.57%) than 74.68% of its industry peers.
The Return On Invested Capital of ALIT (0.73%) is worse than 70.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALIT is significantly below the industry average of 13.48%.
Industry RankSector Rank
ROA -3.95%
ROE -7.57%
ROIC 0.73%
ROA(3y)-1.43%
ROA(5y)-1.09%
ROE(3y)-3.53%
ROE(5y)-4.59%
ROIC(3y)1.29%
ROIC(5y)2.7%
ALIT Yearly ROA, ROE, ROICALIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 5 -5 -10 -15

1.3 Margins

With a Operating Margin value of 2.60%, ALIT is not doing good in the industry: 60.76% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ALIT has declined.
The Gross Margin of ALIT (34.15%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ALIT has remained more or less at the same level.
Industry RankSector Rank
OM 2.6%
PM (TTM) N/A
GM 34.15%
OM growth 3Y-26.41%
OM growth 5Y-22.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.03%
GM growth 5Y-1.35%
ALIT Yearly Profit, Operating, Gross MarginsALIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

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3

2. Health

2.1 Basic Checks

ALIT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALIT has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, ALIT has a worse debt to assets ratio.
ALIT Yearly Shares OutstandingALIT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
ALIT Yearly Total Debt VS Total AssetsALIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

ALIT has an Altman-Z score of 0.83. This is a bad value and indicates that ALIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.83, ALIT is not doing good in the industry: 74.68% of the companies in the same industry are doing better.
The Debt to FCF ratio of ALIT is 14.77, which is on the high side as it means it would take ALIT, 14.77 years of fcf income to pay off all of its debts.
ALIT's Debt to FCF ratio of 14.77 is on the low side compared to the rest of the industry. ALIT is outperformed by 65.82% of its industry peers.
ALIT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, ALIT perfoms like the industry average, outperforming 44.30% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 14.77
Altman-Z 0.83
ROIC/WACC0.09
WACC8.32%
ALIT Yearly LT Debt VS Equity VS FCFALIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.3 Liquidity

ALIT has a Current Ratio of 1.30. This is a normal value and indicates that ALIT is financially healthy and should not expect problems in meeting its short term obligations.
ALIT has a Current ratio (1.30) which is in line with its industry peers.
ALIT has a Quick Ratio of 1.30. This is a normal value and indicates that ALIT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.30, ALIT perfoms like the industry average, outperforming 45.57% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.3
ALIT Yearly Current Assets VS Current LiabilitesALIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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1

3. Growth

3.1 Past

ALIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.28%.
ALIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.00%.
ALIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.48% yearly.
EPS 1Y (TTM)3.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-23%
Revenue growth 3Y7.72%
Revenue growth 5Y7.48%
Sales Q2Q%-31.73%

3.2 Future

The Earnings Per Share is expected to decrease by -0.74% on average over the next years.
Based on estimates for the next years, ALIT will show a decrease in Revenue. The Revenue will decrease by -9.98% on average per year.
EPS Next Y-21.56%
EPS Next 2Y-7.8%
EPS Next 3Y-0.74%
EPS Next 5YN/A
Revenue Next Year-32.58%
Revenue Next 2Y-16.41%
Revenue Next 3Y-9.98%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ALIT Yearly Revenue VS EstimatesALIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ALIT Yearly EPS VS EstimatesALIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.78, the valuation of ALIT can be described as very reasonable.
Based on the Price/Earnings ratio, ALIT is valued cheaper than 88.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.96, ALIT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.25, the valuation of ALIT can be described as reasonable.
Based on the Price/Forward Earnings ratio, ALIT is valued cheaply inside the industry as 86.08% of the companies are valued more expensively.
ALIT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.11.
Industry RankSector Rank
PE 10.78
Fwd PE 11.25
ALIT Price Earnings VS Forward Price EarningsALIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ALIT is valued a bit cheaper than the industry average as 75.95% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALIT.
Industry RankSector Rank
P/FCF 26.15
EV/EBITDA 11.71
ALIT Per share dataALIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.8%
EPS Next 3Y-0.74%

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3

5. Dividend

5.1 Amount

ALIT has a Yearly Dividend Yield of 2.36%.
Compared to an average industry Dividend Yield of 1.82, ALIT pays a better dividend. On top of this ALIT pays more dividend than 91.14% of the companies listed in the same industry.
ALIT's Dividend Yield is comparable with the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 2.36%

5.2 History

ALIT does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
ALIT Yearly Dividends per shareALIT Yearly Dividends per shareYearly Dividends per share 2024 0 0 0 0 0

5.3 Sustainability

DPN/A
EPS Next 2Y-7.8%
EPS Next 3Y-0.74%
ALIT Yearly Income VS Free CF VS DividendALIT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M -300M

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ALIGHT INC - CLASS A

NYSE:ALIT (1/17/2025, 8:04:00 PM)

After market: 6.79 0 (0%)

6.79

0 (0%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)02-19 2025-02-19/amc
Inst Owners106.83%
Inst Owner Change-2.18%
Ins Owners4.12%
Ins Owner Change-20.42%
Market Cap3.69B
Analysts82.86
Price Target11.66 (71.72%)
Short Float %6.54%
Short Ratio5.4
Dividend
Industry RankSector Rank
Dividend Yield 2.36%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.48%
Min EPS beat(2)-5.22%
Max EPS beat(2)0.27%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-5.22%
Max EPS beat(4)14.05%
EPS beat(8)6
Avg EPS beat(8)4.72%
EPS beat(12)8
Avg EPS beat(12)9.75%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-15.47%
Min Revenue beat(2)-31.76%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-10.88%
Min Revenue beat(4)-31.76%
Max Revenue beat(4)0.82%
Revenue beat(8)3
Avg Revenue beat(8)-5.84%
Revenue beat(12)4
Avg Revenue beat(12)-3.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.43%
EPS NY rev (1m)0%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-33.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
Industry RankSector Rank
PE 10.78
Fwd PE 11.25
P/S 1.41
P/FCF 26.15
P/OCF 13.71
P/B 0.85
P/tB N/A
EV/EBITDA 11.71
EPS(TTM)0.63
EY9.28%
EPS(NY)0.6
Fwd EY8.89%
FCF(TTM)0.26
FCFY3.82%
OCF(TTM)0.5
OCFY7.3%
SpS4.81
BVpS7.96
TBVpS-3.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.95%
ROE -7.57%
ROCE 0.93%
ROIC 0.73%
ROICexc 0.76%
ROICexgc 5.92%
OM 2.6%
PM (TTM) N/A
GM 34.15%
FCFM 5.4%
ROA(3y)-1.43%
ROA(5y)-1.09%
ROE(3y)-3.53%
ROE(5y)-4.59%
ROIC(3y)1.29%
ROIC(5y)2.7%
ROICexc(3y)1.34%
ROICexc(5y)2.87%
ROICexgc(3y)13.51%
ROICexgc(5y)22.51%
ROCE(3y)1.63%
ROCE(5y)3.41%
ROICexcg growth 3Y-33.06%
ROICexcg growth 5YN/A
ROICexc growth 3Y-34.41%
ROICexc growth 5YN/A
OM growth 3Y-26.41%
OM growth 5Y-22.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.03%
GM growth 5Y-1.35%
F-Score7
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 14.77
Debt/EBITDA 4.37
Cap/Depr 32.08%
Cap/Sales 4.9%
Interest Coverage 250
Cash Conversion 57.6%
Profit Quality N/A
Current Ratio 1.3
Quick Ratio 1.3
Altman-Z 0.83
F-Score7
WACC8.32%
ROIC/WACC0.09
Cap/Depr(3y)36.57%
Cap/Depr(5y)34.21%
Cap/Sales(3y)4.44%
Cap/Sales(5y)3.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
EPS Next Y-21.56%
EPS Next 2Y-7.8%
EPS Next 3Y-0.74%
EPS Next 5YN/A
Revenue 1Y (TTM)-23%
Revenue growth 3Y7.72%
Revenue growth 5Y7.48%
Sales Q2Q%-31.73%
Revenue Next Year-32.58%
Revenue Next 2Y-16.41%
Revenue Next 3Y-9.98%
Revenue Next 5YN/A
EBIT growth 1Y-50%
EBIT growth 3Y-20.73%
EBIT growth 5Y-16.33%
EBIT Next Year2738.33%
EBIT Next 3Y219.87%
EBIT Next 5YN/A
FCF growth 1Y19.49%
FCF growth 3Y16.48%
FCF growth 5Y14.27%
OCF growth 1Y1.51%
OCF growth 3Y18.33%
OCF growth 5Y14.52%