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Alight Inc

ALIT

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Alight Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • TTM impairment charge of 1.34B (67% of equity) drove -2.2B net loss; excludes this, operating income was 25M positive[Asset Impairment Charge]
  • FCF of 243M TTM (10.6% margin) despite GAAP losses - cash generation intact vs -94% net margin[Free Cash Flow TTM]
  • Intangibles of 3.5B represent 176% of equity; tangible book value is -1.5B[Goodwill and Other Intangible Assets]

Watch Triggers

  • Total Revenue TTM: Decline >5% YoYWould signal accelerating customer attrition in sticky HR services business
  • Free Cash Flow TTM: Falls below 150MWould threaten dividend sustainability and debt service capacity
  • Goodwill: Additional impairment >200MWould indicate further business deterioration beyond current write-down

Bull Case

Trading at 0.49x P/S and 3.1x P/CF TTM with positive FCF - deep value if impairment is truly non-recurring

PS RatioPCF RatioFree Cash Flow TTM

243M FCF TTM covers 84M dividend (16c/share) and provides 22% yield on 1.1B market cap

Free Cash Flow TTMDividends Paid Per Share TTMMarket Cap TTM

Bear Case

Revenue declined -4.4% over 5Y while industry median grew 9%; structural demand erosion in HR services

Total Revenue 5yr GrowthTotal Revenue TTM

Debt/Equity of 1.07x with 2.1B debt vs 205M cash; interest expense of 88M TTM consumes 35% of operating income

Debt to EquityTotal DebtInterest Expense TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

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Forward Thesis

Normalized earnings power of ~100M+ obscured by 1.3B one-time impairment

1-3ymed
  • Operating income 25M TTM pre-impairment
  • FCF of 243M proves cash generation
  • Impairment non-recurring capital write-down
Operating margin 1.1% TTM positiveFCF/Net Income divergence of 2.4BImpairment charge 1.34B one-time

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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