Alight Inc logo

Alight Inc(ALIT)

upturn advisory logo
EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$8.46
10/27/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for ALIT

10/27/2026: ALIT (1-star) is currently NOT-A-BUY. Pass it for now.

Alight Inc is a professional services and HR technology company that provides integrated employee benefits, payroll, and health administration solutions. The company is currently executing a transition from a legacy BPO-heavy model to a software-centric business, driven by its proprietary Alight Worklife platform. Its primary opportunity lies in cross-selling these digital services to a deep base of enterprise clients to improve margins and recurring revenue. Risks remain significant, however, including high debt levels, competitive pressure from agile software firms, and the complexity of its ongoing business model pivot. It may suit investors looking for exposure to HR digital transformation, though the lack of a dividend and operational risks warrant a cautious approach.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers growth potential through its digital platform transition but faces significant execution hurdles.
Momentum investorMixed fitMomentum is often tied to quarterly platform adoption rates; position cautiously until sustained uptrends emerge.
Value investorMixed fitThe valuation may appear attractive relative to long-term potential, though debt levels warrant caution.
Dividend investorWeak fitAlight does not currently pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitHigh debt levels and ongoing business model transformation introduce volatility unsuitable for low-risk profiles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock is subject to fluctuations based on software transition progress and broader enterprise spending trends.
Valuation riskMediumMarket sentiment heavily discounts the company's ability to successfully shift to a pure SaaS business model.
Competition risk (Cloud HR Software)HighThe company faces immense pressure from well-capitalized software firms like Workday.
Business qualityMediumWhile the client base is sticky, the transition to software creates temporary operational complexity.
Dividend incomeLow / noneThe absence of a dividend removes a key pillar of support for long-term income-oriented investors.
Execution riskMedium / highSuccessfully integrating and scaling the Alight Worklife platform is critical to future valuation.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -49.57%
Avg. Invested days 24
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/27/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ALIT receives a 3-star rating based on the available scored pillars. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

★★★★★
ALIT has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and strong ownership. In FY2025 versus FY2024, solid cash generation (FCF margin 11.1%) is partially offset by negative earnings growth (-1872.6%), slightly negative revenue growth (-3.0%), weak profitability (net margin -136.9%).

Financial Health Rating

★★★★★
ALIT's financial health is supported by moderate liquidity, including working-capital and asset support (WC/assets 5.9%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is ALIT's strongest growth driver at +90.8% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-3.0%, slightly negative) and earnings growth (-1872.6%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 77.0% and approximately 81.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 5.92% supports management-shareholder alignment.

Top 5 Institutional Investors

Cannae Holdings Inc 7.66%
D. E. Shaw & Co LP 4.85%
AQR Capital Management LLC 4.73%
Fidelity National Title Group, Inc. 4.22%
CastleKnight Management LP 4.03%

Unit Economics (Per $1K Revenue)

★★★★★
ALIT generates approximately $207 of gross profit, $15 of operating income, and $111 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Soft margins explain the 1-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: -0.52% (Tax Credit)

Quantitative Style Profile

★★★★★
ALIT has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 404.88M USD
Price to earnings Ratio -
1Y Target Price 17
Price to earnings Ratio -
1Y Target Price 17
Volume (30-day avg) 476.4K shares
Beta 1.69
52 Weeks Range 7.93 - 59.94
Updated Date 10/26/2026
52 Weeks Range 7.93 - 59.94
Updated Date 10/26/2026
Dividends yield (FY) 16.70%
Basic EPS (TTM) -76.7

How Company Makes Money

Business areaWhat it includesRetail investor read
Business Process Outsourcing (BPO)Long-term service contracts for benefits and payroll administration.Provides stable, recurring cash flows from large enterprise long-term contracts.
Cloud Services & Professional ServicesConsulting and implementation fees for HR software projects.Project-based revenue that acts as an entry point for software platform sales.
GeographyPrimarily North American operations with growing international reach.Primarily sensitive to US employment and enterprise spending trends.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Advertisement

Valuation

Trailing PE -
Forward PE 4.93
Enterprise Value 2.15B
Price to Sales(TTM) 0.18
Enterprise Value 2.15B
Price to Sales(TTM) 0.18
Enterprise Value to Revenue 0.96
Enterprise Value to EBITDA 29.05
Shares Outstanding 26.42M
Shares Floating 21.64M
Shares Outstanding 26.42M
Shares Floating 21.64M
Percent Insiders 5.92
Percent Institutions 77.03

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.