Stock in Focus: Alignment Healthcare, Inc. (ALHC)

Company Profile:

Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform. It provides customized health care in the United States to seniors and those who need it through its Medicare advantage plans. The company owns Medicare advantage plans in the states of California, North Carolina, and Nevada. It also coordinates and provides covered health care services, including professional, institutional, and ancillary services to members enrolled in certain benefit plans of unaffiliated Medicare Advantage Health Maintenance Organizations. The company was founded in 2013 and is based in Orange, California.

Recent News:

For its third quarter ended Sept. 30, 2022, the company reported that total revenue was $360.3 million, up 22.8% year over year. Health plan premium revenue of $345.4 million represented 23.9% growth year over year.

On Oct. 24, 2022, the company had been named a 2023 Best Insurance Company for Medicare Advantage plans by U.S. News & World Report for its top-rated HMO in North Carolina. Alignment is one of only four MA insurance companies in the state to earn the U.S. News “Best” rankings badge.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

ALHC receives outperform rating in price to book value, discounted cash flow and debt to equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the Stochastic oscillator, the MACD is trying to cross back up and the RSI(14) stands at 46.1 with positive bias. We rate Alignment Healthcare, Inc. (ALHC) a BUY.