Alight, Inc.
$0.72
-12%Alight, Inc. operates as a cloud-based provider of integrated digital human capital and business solutions worldwide. It operates through three segments: Employer Solutions, Professional Services, and Hosted Business. The company's solutions enable employees to enrich their health, wealth, and wellbeing, which helps organizations achieve a high-performance culture. It offers employer solutions comprising integrated benefits administration, healthcare navigation, financial health, employee wellbeing, and payroll; and professional services, including cloud deployment and consulting offerings that provides human capital and financial platforms, as well as cloud advisory and deployment, and optimization services for cloud platforms, such as Workday, SAP SuccessFactors, Oracle, and Cornerstone OnDemand. Alight, Inc. was founded in 2017 and is headquartered in Lincolnshire, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -0.1).
Valuation inputs: P/E -0.1, earnings yield N/A, momentum -12.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -3.0%, ROIC +0.9%).
Profitability stack: net margin -1.4%, ROE -3.0%, ROIC +0.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +77.1%, momentum -12.4%, net margin -1.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Alight, Inc. Market vs Earnings Trajectory
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Alight, Inc. Fair Value Envelope
Alight, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Alight, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Alight, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Alight, Inc. Street Expectations Map
Wall Street analysts project that ALIT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 3.75, with estimates ranging from a low of 2.50 to a high of 5.00.
The consensus 1-year price target stands at 3.75, with estimates ranging from a low of 2.50 to a high of 5.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Alight, Inc. Insider Positioning
During the last 12 months, insiders have purchased $975K and sold $317K worth of ALIT shares, resulting in $657K of net buying activity.
3 Months
142.0K
124.28K
0
0.00
+124K
+$124K
3-6 Months
100.0K
77.04K
0
0.00
+77K
+$77K
6-9 Months
239.4K
599.40K
59.1K
188.61K
+411K
+$411K
9-12 Months
31.9K
174.05K
24.6K
128.81K
+45K
+$45K
Top Buyers
Massey Richard N
Director
$290K
Verma Rohit
Director, Officer: Chief Executive Officer
$177K
Schriesheim Robert A
Director
$101K
Fradin Russell P
Director
$100K
Lopes Robert A. Jr.
Director
$98K
Top Sellers
Guilmette David D
Director, Officer: Chief Executive Officer
$287K
Felli Martin
Officer: See Remarks
$17K
Duggirala Deepika
Officer: Chief Technology Officer
$13K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $657K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
5 insider buyers vs. 3 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
alit Dividend History
Learning Layer
Related Guides
Build conviction on ALIT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.