Alignment Healthcare, Inc. (ALHC) AI Stock Analysis
ALHC AI stock analysis summary
AI ResearchAlignment Healthcare, Inc. (ALHC) is a tech-enabled Medicare Advantage provider serving seniors across multiple states. The company expanded revenue from $1.17B in FY2021 to $3.95B in FY2025, generating $113.1M in free cash flow in FY2025. Despite rapid operational expansion, the stock has dropped 51.3% over the past year.
- Market cap
- $1.72B
- Revenue (TTM)
- $4.58B
- P/E
- 43.6x fwd 204.1x
- 1Y return
- -51.3% S&P 500 16.8%
- Avg. target
- $13.31 60.7% vs last close
Bull case
- Revenue grew 46.1% in FY2025 to $3.95B, backed by a 5-year revenue CAGR of 32.7%.
- Free cash flow turned positive at $113.1M in FY2025, supported by $139.9M in operating cash flow.
- The company holds a net cash balance of $371.2M as of June 30, 2026, with $701.7M in cash and short-term investments exceeding total debt of $330.5M.
Bear case
- The stock has declined 51.3% over the trailing year and trades at a forward P/E of 204.1x.
- Profitability remains low, with a trailing twelve-month profit margin of 0.9% and FY2025 operating margin of 0.4%.
- The company has diluted shareholders, with share count increasing by 20.5% over 5 years.
What Alignment Healthcare does
Alignment Healthcare, Inc. is a tech-enabled Medicare Advantage company founded in 2013 and based in Orange, California. It provides tailored Medicare Advantage healthcare plans for seniors and individuals requiring specialized care across California, North Carolina, Nevada, Arizona, Florida, and Texas. The company utilizes a consumer-centric platform powered by data-driven insights and analytics to design personalized care plans. Its offerings emphasize preventive care, chronic disease management, and wellness support to optimize healthcare delivery, improve clinical outcomes, and enhance healthcare accessibility and affordability.
Growth and profitability
Alignment Healthcare increased annual revenue from $1.17B in FY2021 to $3.95B in FY2025, reflecting a 5-year revenue CAGR of 32.7%. Operating margin improved steadily over the period, moving from -15.2% in FY2021 to 0.4% in FY2025. Annual net income progressed from -$195.3M in FY2021 to -$724,000 in FY2025, with EPS turning positive at $0.23. Across the trailing twelve months ended June 30, 2026, revenue stood at $4.58B with a profit margin of 0.9%. In the latest quarter ended June 30, 2026, quarterly revenue grew 31.6% year-over-year while quarterly earnings rose 142.9%.
Balance sheet and cash flow
As of June 30, 2026, Alignment Healthcare held $701.7M in cash and short-term investments against total debt of $330.5M, resulting in a net cash position of $371.2M. The company reported a current ratio of 1.70, total assets of $1.28B, and shareholders' equity of $265.1M, yielding a debt-to-equity ratio of 1.25. Operating cash flow reached $139.9M in FY2025. In FY2025, the company deployed $26.8M toward capital expenditures, generating $113.1M in free cash flow. Share count increased by 20.5% over a 5-year span.
Valuation and performance
At $8.28, Alignment Healthcare trades at a trailing price-to-earnings multiple of 43.6x and a forward P/E of 204.1x, higher than the median of its US-listed Healthcare peers at 24.6x and 17.3x, respectively. The company's price-to-sales multiple is 0.4x, lower than the peer median of 4.1x, while its EV-to-EBITDA stands at 14.6x against the peer median of 12.0x. Alignment Healthcare's shares declined 51.3% over the past year and 58.1% year-to-date, trailing the S&P 500 (SPY), which gained 16.8% over the past year.
What analysts expect
Wall Street coverage includes 7 Strong Buy, 3 Buy, and 4 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $13.31 implies 60.7% upside relative to the last close of $8.28. For FY2026, analysts estimate revenue of $5.22B and EPS of $0.45. For FY2027, consensus models $6.51B in revenue and $0.65 in EPS. The company beat EPS consensus estimates in each of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.
Key risks and what to watch
- The stock carries a high short interest, with short percent of float at 11.7%.
- Net margin remains thin at 0.9% over the trailing twelve months, leaving little buffer against cost fluctuations.
- Share count expanded 20.5% over 5 years, posing continued potential dilution risk.
- Debt-to-equity stands at 1.25 with total debt of $330.5M relative to $265.1M in shareholders' equity.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ALHC AI stock analysis
This page is an AI-written research summary of Alignment Healthcare, Inc. (ALHC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ALHC income statement, ALHC balance sheet, ALHC key metrics, ALHC analyst forecast, ALHC chart. See the ALHC stock overview for the latest quote and news.
ALHC AI stock analysis FAQ
What states does Alignment Healthcare operate in?
Alignment Healthcare offers tailored Medicare Advantage plans across six states: California, North Carolina, Nevada, Arizona, Florida, and Texas.
Is Alignment Healthcare profitable?
The company reported FY2025 net income of -$724,000 with EPS of $0.23, and produced a trailing twelve months profit margin of 0.9% with an EPS of $0.19.
Does ALHC pay a dividend?
Alignment Healthcare does not pay a dividend.
What is the consensus price target for ALHC stock?
The analyst consensus mean price target is $13.31, representing a 60.7% premium over the last close price of $8.28.