| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | — | 17.8x | Around median | |
Growth | 96 | 37.2% | 7.1% | Top tier | |
Quality | 55 | — | 4.5% | Around median | |
Safety | 66 | — | 2.6x | Around median | |
Capital Return | 49 | — | 2.12% | Around median | |
Momentum | 16 | -13.6% | 2.9% | Bottom tier | |
Sentiment | 34 | 6 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alignment Healthcare operates healthcare plans in the Medicare Advantage market, linking its revenue growth to plan membership and its ability to manage medical care costs. The company relies on the AVA Care Anywhere model and clinical teams to intervene with members at greatest risk of hospitalization, while also using contractual arrangements that include risk sharing and direct contracting with care providers. Its profitability is therefore primarily determined by the spread between membership revenue and medical claims and benefits, alongside the efficiency of selling, general, and administrative expenses.
In Q2 FY2026, health plan membership increased 31% year over year to 294 thousand members, while revenue rose 32% to $1.3 billion. Net income according to EDGAR data was approximately $36.6 million, and earnings per share were $0.17, while adjusted gross profit reached $183 million and the adjusted MBR was 86.3%, an improvement of 40 basis points. Adjusted earnings before interest, taxes, depreciation, and amortization were $68 million, up 48%, with the margin expanding 60 basis points to 5.1%.
The membership mix reflects high growth but includes an upfront cost: approximately 50% of the company's members were in their first- or second-year cohorts as of June 30, 2026, while those eligible for C-SNP and D-SNP plans and dual-eligible beneficiaries represented 50% of new members in FY2026. Management raised its FY2026 revenue range to $5.20–5.23 billion, with adjusted gross profit between $630 million and $650 million and adjusted earnings before interest, taxes, depreciation, and amortization between $145 million and $163 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates ALHC shares a “Buy,” with an average price target of $19 and a target range of $16 to $22. The average target is approximately 24% below the 52-week high of $25.12, while even the highest target of $22 does not reach that peak, reflecting a degree of caution despite revenue and margin growth. This consensus should be weighed against the wide 52-week range of $12.70–25.12 and the risks of rising medical costs, intensive investment, and regulatory uncertainty.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Alignment Healthcare generates revenue by operating Medicare Advantage plans tied to health plan membership. In Q2 FY2026, membership of 294 thousand generated revenue of $1.3 billion, up 32% year over year. The company manages care costs through AVA Care Anywhere, risk-sharing arrangements, and direct contracting with providers, so medical claims and the effectiveness of clinical intervention directly affect profitability.
Revenue in Q2 FY2026 rose 32% to $1.3 billion, while net income reached $36.6 million and earnings per share were $0.17. Adjusted gross profit was $183 million, and the adjusted MBR improved 40 basis points to 86.3%. Adjusted earnings before interest, taxes, depreciation, and amortization also rose 48% to $68 million, with a margin of 5.1%.
The company expects FY2026 revenue between $5.20 billion and $5.23 billion, equivalent to approximately 32% growth at the midpoint of the range. It expects adjusted gross profit between $630 million and $650 million and adjusted earnings before interest, taxes, depreciation, and amortization between $145 million and $163 million. For Q3 FY2026, it expects revenue between $1.30 billion and $1.32 billion and adjusted earnings before interest, taxes, depreciation, and amortization between $20 million and $30 million due to seasonality and investments.
The company announced on July 30, 2026 the deployment of the latest version of the AI-powered stratification model within AVA. The model can identify the 10% of members expected to account for approximately 70% of hospitalizations over the following thirty days. AVA Care Anywhere teams use these signals and medical case records to direct proactive interventions, while the company also invests in automating record preparation, administrative processes, and risk data reconciliation.
The company intends to make additional investments in the tens of millions of dollars during the second half of FY2026 across clinical operations and administrative expenses, with a greater concentration in Q3. These expenditures include expanding AVA Care Anywhere, early clinical hiring, automation, artificial intelligence, and preparations for market launches in FY2027. As a result, management expects a seasonal increase in MBR and a higher share of selling, general, and administrative expenses to be recorded in Q3 FY2026.
Management said on July 30, 2026 that it had no visibility into the content of the CMS technical rule for FY2028 and that the regulatory and legal environment surrounding Stars ratings was unsettled. It also expected two or three players to become more aggressive in the Medicare Advantage market during FY2027. These factors could pressure benefit design, pricing, and member retention alongside Alignment Healthcare's expansions within existing states in FY2027.
