Alignment Healthcare Inc (ALHC, Financial) has recently seen a notable uptick in its stock performance. With a current market capitalization of $1.47 billion, the stock price stands at $7.76, reflecting a gain of 2.65% over the past week. More impressively, over the past three months, ALHC has experienced a significant gain of 34.02%. When compared to the GF Value of $15.2, the stock appears to be significantly undervalued, indicating potential room for growth. It's important to note that the past GF Value is not applicable, as it was listed as $0.
Introducing Alignment Healthcare Inc
Alignment Healthcare Inc operates within the healthcare plans industry, focusing on a consumer-centric platform that offers Medicare Advantage plans directly to seniors. This innovative approach to healthcare coverage allows seniors to choose their healthcare services annually, tailoring their experience to their specific needs. As the healthcare industry continues to evolve, Alignment Healthcare's direct-to-consumer model positions it at the forefront of this transformation.
Assessing Profitability
Despite the positive stock performance, Alignment Healthcare's Profitability Rank is low at 1/10. The company's operating margin stands at -8.02%, which is better than 26.67% of its industry peers. In terms of return on equity (ROE), the figure is at a concerning -69.73%, yet it still outperforms 10.53% of industry competitors. The return on assets (ROA) is also in the negative at -21.17%, surpassing 10.53% of peers. Lastly, the return on invested capital (ROIC) is at -67.66%, which is better than 5.26% of the industry. These figures suggest that while Alignment Healthcare is not leading in profitability, it is not at the bottom of the pack either.
Evaluating Growth Prospects
When it comes to growth, Alignment Healthcare shows a mixed picture. The company's 3-year revenue growth rate per share is a robust 16.70%, which is better than 61.11% of its industry peers. However, the 3-year EPS without NRI growth rate is at -40.80%, which, while not ideal, is still better than 11.76% of industry competitors. This suggests that while the company is growing its revenue, it is facing challenges in translating that growth into earnings per share.
Notable Shareholders
Among the notable shareholders of Alignment Healthcare, Jim Simons (Trades, Portfolio) stands out with 980,100 shares, representing a 0.52% share percentage. Following him is Paul Tudor Jones (Trades, Portfolio), who holds 123,760 shares, accounting for 0.07% of the company. The presence of these prominent investors may offer a vote of confidence in the company's potential and strategy.
Competitive Landscape
Alignment Healthcare operates in a competitive industry, with several close competitors in terms of market capitalization. Oscar Health Inc (OSCR, Financial) has a market cap of $1.84 billion, slightly larger than ALHC. On the other hand, Clover Health Investments Corp (CLOV, Financial) and Bright Health Group Inc (BHG, Financial) have market caps of $463.262 million and $52.163 million, respectively, which are smaller than ALHC's. This positioning gives Alignment Healthcare a middle ground in terms of size among its competitors.
Conclusion
In summary, Alignment Healthcare Inc's stock has shown impressive performance in recent months, with a 34.02% increase in value. The company's valuation status, as indicated by the GF Value, suggests that the stock is significantly undervalued. Within the healthcare plans industry, Alignment Healthcare is innovating with its direct-to-consumer model, although its profitability metrics indicate room for improvement. The company's revenue growth is strong, but this has not yet fully translated into earnings growth. Notable shareholders like Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) provide a layer of investor confidence. Finally, when compared to its competitors, Alignment Healthcare holds a competitive market capitalization, which could be a sign of stability and potential for future growth.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
