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Alignment HealthcareALHC -20.20%79 Gross Margin % is 13.55% as of Jun. 2026, which is 10% above its 10-year median of 12.37. GuruFocus rates ALHC with a GF Score™ of 79/100 and a GF Value™ of $20.32 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 14 Healthcare Plans companies, Alignment Healthcare ranks worse than 78.57% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alignment Healthcare had a gross margin of 13.55% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alignment Healthcare Gross Margin % Related Terms
Alignment Healthcare Gross Margin % Historical Data
* Premium members only.
The historical data trend for Alignment Healthcare's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALHC vs PGNY, CLOV, PFHO: Gross Margin % Comparison
For the Healthcare Plans subindustry, Alignment Healthcare's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alignment Healthcare Gross Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Alignment Healthcare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alignment Healthcare's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alignment Healthcare (ALHC) has a Gross Margin % of 13.55% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alignment Healthcare and its competitors. This is 10% above median its historical median of 12.37. Over the past decade, Alignment Healthcare's Gross Margin % has ranged from 10.97 to 17.33. According to the industry distribution chart, Alignment Healthcare ranks #11 out of 14 companies in the Healthcare Plans industry, placing it in the top 78.6%.
Is Alignment Healthcare's Gross Margin % too high?
Alignment Healthcare's current Gross Margin % of 13.55% is 10% above median its 10-year median of 12.37. Over the past 10 years, this metric has ranged from a low of 10.97 to a high of 17.33. The Healthcare Plans industry median Gross Margin % is 18.60. Alignment Healthcare's value of 13.55% is 27.1% below this industry median. Based on the distribution chart, Alignment Healthcare ranks #11 out of 14 companies in the Healthcare Plans industry, which is in the bottom quartile relative to peers. Overall, Alignment Healthcare has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alignment Healthcare's Gross Margin % compare to PGNY and CLOV?
According to the Healthcare Plans industry distribution chart, Alignment Healthcare ranks #11 out of 14 companies for Gross Margin %. This places Alignment Healthcare in the lower half of its industry. The industry median Gross Margin % is 18.60. Alignment Healthcare's value of 13.55% is 27.1% below this benchmark. Historically, Alignment Healthcare's own Gross Margin % has ranged from 10.97 to 17.33 over the past decade. While the company's 10-year median is 12.37 vs. the industry median of 18.60, Alignment Healthcare has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Plans company?
The median Gross Margin % among Healthcare Plans companies is 18.60, based on 14 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alignment Healthcare's current Gross Margin % of 13.55% is 27.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alignment Healthcare and its competitors. For the Healthcare Plans industry, the median Gross Margin % is 18.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alignment Healthcare's current Gross Margin % is 13.55%, which is 10% above median its own 10-year median of 12.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alignment Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Alignment Healthcare (ALHC) is currently considered Modestly Undervalued. The stock's GF Value™ is $20.32, compared to a current price of $14.84 — trading 27% below its estimated fair value. The current Gross Margin % is 13.55%, which is 10% above median its 10-year median of 12.37 and 27.1% below the Healthcare Plans industry median of 18.60. Alignment Healthcare's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alignment Healthcare (ALHC), the current Gross Margin % is 13.55% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alignment Healthcare (ALHC) Overvalued in 2026?
Based on GuruFocus' analysis, Alignment Healthcare stock appears to be undervalued.
The current stock price of $14.84 is trading 27% below its estimated GF Value™ of $20.32.
GuruFocus considers Alignment Healthcare to be Modestly Undervalued.
Key valuation signals for ALHC:
Gross Margin %: 13.55% (10% above median its 10-year median of 12.37)
GF Value™: $20.32 vs. price of $14.84 (27% below fair value)
Industry Position: 27.1% below the Healthcare Plans median (#11 of 14)
No single metric tells the full story. See the ALHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alignment Healthcare Inc is a next-generation, consumer-centric platform that is revolutionizing the healthcare experience for seniors through Medicare Advantage plans. These plans are marketed and sold direct-to-consumer, allowing seniors to select the manner in which customers receive healthcare coverage and services on an annual basis. The company combines a technology platform and clinical model for more effective health outcomes.
79GF Score
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