Alight, Inc. (ALIT) stock analysis

In our weekly check, Alight, Inc. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 3, red flags: 11.

About Alight, Inc.

Alight, Inc. is a Technology company (Software - Application) based in the United States, listed on NYSE as ALIT.

What our checks show for ALIT

Red flags

• Debt is high against equity (2.14x). That limits room in a downturn.
• The net margin fell by 44 points over 5 years, to -46%: the company keeps less of each sale as profit.
• The gross margin fell by 7.9 points, to 15.9%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 3.3% a year.
• Revenue fell 0.1% a year over the last 3 years.
• Weak EPS growth
• The company is losing money: the net margin is -46%.
• Alight, Inc. pays a dividend while losing money: it is funded from reserves or debt.
• The price swings a lot: 112% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 97% from a peak. Would you have held through that?
• Beta 1.74: the stock usually moves more than the market, both up and down.

Warning signs

• Analysts expect earnings per share to shrink about 62.3% a year.
• A small company (market value $340 million): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 23.2 times over.
• Operating cash flow is 0.3x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 51.6 points from today's -46%.
• Return on capital (ROCE) is 64.1%: the business earns well on the money put into it.
• Pay in shares is only 9.2% of free cash flow.

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Questions

What grade does Alight, Inc. (ALIT) have?

In our weekly check, Alight, Inc. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 3, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ALIT stock?

This week's biggest flags for Alight, Inc.: High debt, Margins falling, Gross margin falling. In total 14 of 23 checks show a warning or a red flag.

What does Alight, Inc. do?

Alight, Inc. is a Technology company (Software - Application) based in the United States, listed on NYSE as ALIT.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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