Alignment Healthcare Inc. Common Stock (ALHC)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of stories that look cheap only if everything goes right. Alignment Healthcare serves seniors through Medicare Advantage. Filed figures show revenue rising from $2.7B in fiscal year 2024 (period ended 2024-12-31) to $3.9B in fiscal year 2025 (period ended 2025-12-31), and in fiscal Q2 2026 (quarter ended 2026-06-30) revenue was $1.3B versus $1.0B in fiscal Q2 2025. More importantly, fiscal Q2 2026 net income was $36.6M and diluted EPS $0.17, versus $15.7M and $0.07 in fiscal Q2 2025. Fiscal Q1 2026 also earned $11.4M. But those profits are thin: the latest quarter's net margin is 2.74%, and FairStock's ROCE is 3.07%, with D/E 1.25 and Altman Z 1.57. At the 2026-10-13 close of $8.30, FairStock's P/E is 43.68 and P/B is 6.48; its Graham Number is $2.34, a -254.70% margin of safety. The TTM FCF yield of 10.3% is attractive, but the stock sells far above conservative asset and earnings value. The computed Lynch category is none because of losses in each of the last four years. This is a business improving operationally, yet it lacks a clear durable moat and margin of safety. I would want many more quarters of consistent profit before calling it a value opportunity.

In plain English: Alignment Healthcare runs Medicare Advantage health plans for seniors. Revenue is growing and the business has recently become profitable, but it has a history of losses and very thin margins. At the recent $8.30 close, the price looks expensive compared with its earnings and accounting value, even though the business is generating cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer