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Alignment Healthcare (NAS:ALHC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Alignment Healthcare Net Margin % Related Terms
Alignment Healthcare Net Margin % Historical Data
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The historical data trend for Alignment Healthcare's Net 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.
For the Healthcare Plans subindustry, Alignment Healthcare's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Alignment Healthcare's Net Margin % distribution charts can be found below:
* The bar in red indicates where Alignment Healthcare's Net 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.
Alignment Healthcare (ALHC) has a Net Margin % of 2.74% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Alignment Healthcare and its competitors. According to the industry distribution chart, Alignment Healthcare ranks #10 out of 18 companies in the Healthcare Plans industry, placing it in the top 55.6%.
Is Alignment Healthcare's Net Margin % too high?
Alignment Healthcare's current Net Margin % is 2.74%. The Healthcare Plans industry median Net Margin % is 0.99. Alignment Healthcare's value of 2.74% is 178.2% above this industry median. Based on the distribution chart, Alignment Healthcare ranks #10 out of 18 companies in the Healthcare Plans industry, which is below the industry midpoint. 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 Net Margin % compare to PGNY and CLOV?
According to the Healthcare Plans industry distribution chart, Alignment Healthcare ranks #10 out of 18 companies for Net Margin %. This places Alignment Healthcare in the lower half of its industry. The industry median Net Margin % is 0.99. Alignment Healthcare's value of 2.74% is 178.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Healthcare Plans company?
The median Net Margin % among Healthcare Plans companies is 0.99, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alignment Healthcare's current Net Margin % of 2.74% is 178.2% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Alignment Healthcare and its competitors. For the Healthcare Plans industry, the median Net Margin % is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alignment Healthcare's current Net Margin % is 2.74%. 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 Net Margin % is 2.74% and 178.2% above the Healthcare Plans industry median of 0.99. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Alignment Healthcare (ALHC), the current Net Margin % is 2.74% 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:
Net Margin %: 2.74%
GF Value™: $20.32 vs. price of $14.84 (27% below fair value)
Industry Position: 178.2% above the Healthcare Plans median (#10 of 18)
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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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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