# Alight (ALIT.US)

Canonical: https://gigainvestors.com/s/ALIT

Analysis as of: 2026-10-16T07:26:23.023Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $9.22 per share; close as of 2026-10-15.

Estimated value: low $52.76 per share, central $59.14 per share, high $67.64 per share. Buy at or below the central value $59.14 per share. Valuation as of 2026-10-16T07:26:23.023Z; scenarios are not confidence intervals.

Expected annual return: 152.9% at the stated quote. About 152.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 7

- Operating margin variation: 1.41×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.09×

- FY2019: 0.10×

- FY2020: 0.05×

- FY2021: 0.07×

- FY2022: -0.04×

- FY2023: -0.03×

- FY2024: -0.04×

- FY2025: 0.02×

- LTM to Jun 2026: 0.44×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 12.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.7%

- ROIC, second-lowest year: -2.1%

- Typical minus recent gross margin: 12.3 pp

- Typical gross margin (annual median): 33.0%

- Recent gross margin (lower of latest and 3-year median): 20.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 2.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.3%

- FY2018: 7.3%

- FY2019: 7.1%

- FY2020: 5.1%

- FY2021: 4.7%

- FY2022: -2.1%

- FY2023: -2.1%

- FY2024: -2.4%

- FY2025: 1.0%

- LTM to Jun 2026: 28.0%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$2.4B

- Net income, five-year total: -$3.7B

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, final three-year average: 8.2%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $180M

- FY2022: $140M

- FY2023: -$64M

- FY2024: $117M

- FY2025: -$2.8B

### management: fail

- buybacks unrelated to price (informational)

- Per-share earnings: 0.19 to -0.70 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 3.4%

- Diluted shares, 5-year annual growth: 3.4%

- Per-share value change: -$0.90

- Per-share value, starting three-year median: $0.19

- Per-share value, ending three-year median: -$0.70

- Buybacks concentrated in cheaper years (correlation): -0.49

- Average buyback yield: 2.5%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: -$3.7B

- ROIC, last three-year median: -2.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.01

- FY2017: $0.19

- FY2018: -$0.17

- FY2019: $0.05

- FY2020: -$0.23

- FY2021: -$0.14

- FY2022: -$0.14

- FY2023: -$0.70

- FY2024: -$0.29

- FY2025: -$5.87

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -75.7%

- Receivables to sales index (DSRI): 0.88×

- Restructuring years, last five: 4

- Stock compensation / operating cash flow: 5.3%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 2.54×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.5%

- FY2018: -3.8%

- FY2019: -3.7%

- FY2020: -4.8%

- FY2021: -1.6%

- FY2022: -3.1%

- FY2023: -6.8%

- FY2024: -5.0%

- FY2025: -75.7%

## Holders

## Price story

Down 46% since Jul 2026 · "Alight (NYSE:ALIT) Beats Q2 CY2026 Sales Expectations But Stock Drops On Weak Guidance" (finance.yahoo.com, Aug 2026) · sales -3%

Story as of 2026-10-16T09:58:16.423Z; price observation 2026-10-15.

Price needs cash profits to shrink 42.9% a year for ten years

- 2025-08-13: ALIT Q2 Deep Dive: Guidance Lowered as Sales Cycles Lengthen and Execution Shifts ([finance.yahoo.com](https://finance.yahoo.com/news/alit-q2-deep-dive-guidance-035348194.html))

- 2025-11-06: ALIT Q3 Deep Dive: Guidance Cut Amid Weak Project Pipeline and Margin Focus ([finance.yahoo.com](https://finance.yahoo.com/news/alit-q3-deep-dive-guidance-053130891.html))

- 2026-03-27: Assessing Alight (ALIT) Valuation After Lawsuit Allegations Earnings Miss And Dividend Cancellation ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/assessing-alight-alit-valuation-lawsuit-140356364.html))

- 2026-08-04: Alight (NYSE:ALIT) Beats Q2 CY2026 Sales Expectations But Stock Drops On Weak Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/alight-nyse-alit-beats-q2-205404882.html))

### Sales · FY2024–2025

sales -3%; source https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm; observed 2026-02-24.

- FY2016: $2.3B 

- FY2017: $2.3B 

- FY2018: $2.4B 

- FY2019: $2.6B 

- FY2020: $2.7B 

- FY2021: $2.9B 

- FY2022: $2.2B 

- FY2023: $3.4B 

- FY2024: $2.3B 

- FY2025: $2.3B 

### Gross margin · FY2025

gross margin 20.7%; source https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm; observed 2026-02-24.

- FY2016: 32.6% 

- FY2017: 34.9% 

- FY2018: 35.8% 

- FY2019: 34.6% 

- FY2020: 30.6% 

- FY2021: 23.8% 

- FY2022: 31.1% 

- FY2023: 33.4% 

- FY2024: 34.0% 

- FY2025: 20.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 2.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm (filed 2026-02-24); FY2025: revenue 2262000000; grossProfit 469000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); ALIT.US: Alight, Inc. a technology-enabled services company worldwide. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its platform services include integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, and retiree healthcare; and operates AI-led capabilities software. In addition, it offers a full-service customer care center helping them manage the full life cycle of their health, wealth, and wellbeing. Alight, Inc. was founded in 2020 and is headquartered in Chicago, Illinois.

### Why customers stay

Margins ranged from 20.7% to 34% during 2023–25; it earns 4.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 34%.

- Source: https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 20.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2017,0.05282292557741659],[2018,0.07279132791327914],[2019,0.0708264802631579],[2020,0.05064544265154819],[2021,0.04727328809376928],[2022,-0.021138627953316252],[2023,-0.02094225721784777],[2024,-0.02443298969072165],[2025,0.009568934805842536]]; median 0.04727328809376928. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back USD 65 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 77000000; owner earnings 239000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 57000000; owner earnings 159000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 80000000; owner earnings 128000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 77000000; owner earnings 198000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 90000000; owner earnings 98000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 114000000; owner earnings 180000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 148000000; cash acquisitions 87000000; owner earnings 140000000. Growth capex plus acquisitions / owner earnings = 0.6214285714285714.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 121000000; cash acquisitions 0; owner earnings 117000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,308000000],[2017,69000000],[2018,2000000],[2019,10000000],[2020,3000000],[2021,1000000],[2022,0],[2023,0],[2024,21000000],[2025,86000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 65000000 USD.

### Are managers owners

Insiders own 5.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); ALIT.US SharesStats.PercentInsiders = 5.816000000000001 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 42.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate -0.5760737923088339. Price 9.22; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2020-07: $10.28 per share

- 2020-08: $10.10 per share

- 2020-09: $10.36 per share

- 2020-10: $10.05 per share

- 2020-11: $10.20 per share

- 2020-12: $11.18 per share

- 2021-01: $11.21 per share

- 2021-02: $10.40 per share

- 2021-03: $10.04 per share

- 2021-04: $10.05 per share

- 2021-05: $10.40 per share

- 2021-06: $9.77 per share

- 2021-07: $9.41 per share

- 2021-08: $10.99 per share

- 2021-09: $11.48 per share

- 2021-10: $10.88 per share

- 2021-11: $10.40 per share

- 2021-12: $10.81 per share

- 2022-01: $9.66 per share

- 2022-02: $10.44 per share

- 2022-03: $9.95 per share

- 2022-04: $8.59 per share

- 2022-05: $8.16 per share

- 2022-06: $6.75 per share

- 2022-07: $7.54 per share

- 2022-08: $7.88 per share

- 2022-09: $7.33 per share

- 2022-10: $8.29 per share

- 2022-11: $8.63 per share

- 2022-12: $8.36 per share

- 2023-01: $9.39 per share

- 2023-02: $9.60 per share

- 2023-03: $9.21 per share

- 2023-04: $9.25 per share

- 2023-05: $8.46 per share

- 2023-06: $9.24 per share

- 2023-07: $9.78 per share

- 2023-08: $7.64 per share

- 2023-09: $7.09 per share

- 2023-10: $6.64 per share

- 2023-11: $7.65 per share

- 2023-12: $8.53 per share

- 2024-01: $8.92 per share

- 2024-02: $9.01 per share

- 2024-03: $9.85 per share

- 2024-04: $9.02 per share

- 2024-05: $7.75 per share

- 2024-06: $7.38 per share

- 2024-07: $7.57 per share

- 2024-08: $7.46 per share

- 2024-09: $7.40 per share

- 2024-10: $6.93 per share

- 2024-11: $8.00 per share

- 2024-12: $6.92 per share

- 2025-01: $6.85 per share

- 2025-02: $6.83 per share

- 2025-03: $5.93 per share

- 2025-04: $5.11 per share

- 2025-05: $5.46 per share

- 2025-06: $5.66 per share

- 2025-07: $5.36 per share

- 2025-08: $3.88 per share

- 2025-09: $3.26 per share

- 2025-10: $2.88 per share

- 2025-11: $2.31 per share

- 2025-12: $1.95 per share

- 2026-01: $1.53 per share

- 2026-02: $0.88 per share

- 2026-03: $0.58 per share

- 2026-04: $0.83 per share

- 2026-05: $0.94 per share

- 2026-06: $0.56 per share

- 2026-07: $16.98 per share

- 2026-08: $14.31 per share

- 2026-09: $8.92 per share

- 2026-10: $9.22 per share

## Annual estimated value (USD per share)

- FY2020: low $5.62 per share, central $6.26 per share, high $7.10 per share

- FY2021: low $5.07 per share, central $5.69 per share, high $6.51 per share

- FY2022: low $3.64 per share, central $4.09 per share, high $4.68 per share

- FY2023: low $5.29 per share, central $5.94 per share, high $6.81 per share

- FY2024: low $2.92 per share, central $3.24 per share, high $3.68 per share

- FY2025: low $2.78 per share, central $3.11 per share, high $3.54 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:31:58.776Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.