Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alignment Healthcare's annualized net income for the quarter that ended in Mar. 2026 was $46 Mil. Alignment Healthcare's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $156 Mil. Therefore, Alignment Healthcare's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 29.18%.
The historical rank and industry rank for Alignment Healthcare's Return-on-Tangible-Equity or its related term are showing as below:
ALHC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -146.34 Med: -94.07 Max: 16.18
Current: 16.18
During the past 7 years, Alignment Healthcare's highest Return-on-Tangible-Equity was 16.18%. The lowest was -146.34%. And the median was -94.07%.
ALHC's Return-on-Tangible-Equity is ranked better than 55.56% of 18
companies
in the Healthcare Plans industry
Industry Median: 14.115
vs ALHC: 16.18
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alignment Healthcare Return-on-Tangible-Equity Related Terms
Alignment Healthcare Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alignment Healthcare's Return-on-Tangible-Equity 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 CLOV, PGNY, OSCR: Return-on-Tangible-Equity Comparison
For the Healthcare Plans subindustry, Alignment Healthcare's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Alignment Healthcare's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alignment Healthcare's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 29.18% mean?
Alignment Healthcare (ALHC) has a Return-on-Tangible-Equity of 29.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alignment Healthcare and its competitors. According to the industry distribution chart, Alignment Healthcare ranks #8 out of 18 companies in the Healthcare Plans industry, placing it in the top 44.4%.
Is Alignment Healthcare's Return-on-Tangible-Equity too high?
Alignment Healthcare's current Return-on-Tangible-Equity is 29.18%. The Healthcare Plans industry median Return-on-Tangible-Equity is 14.12. Alignment Healthcare's value of 29.18% is 106.7% above this industry median. Based on the distribution chart, Alignment Healthcare ranks #8 out of 18 companies in the Healthcare Plans industry, which is above the industry midpoint. Overall, Alignment Healthcare has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alignment Healthcare's Return-on-Tangible-Equity compare to CLOV and PGNY?
According to the Healthcare Plans industry distribution chart, Alignment Healthcare ranks #8 out of 18 companies for Return-on-Tangible-Equity. This puts Alignment Healthcare in the upper half of its industry. The industry median Return-on-Tangible-Equity is 14.12. Alignment Healthcare's value of 29.18% is 106.7% 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 Return-on-Tangible-Equity for a Healthcare Plans company?
The median Return-on-Tangible-Equity among Healthcare Plans companies is 14.12, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alignment Healthcare's current Return-on-Tangible-Equity of 29.18% is 106.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alignment Healthcare and its competitors. For the Healthcare Plans industry, the median Return-on-Tangible-Equity is 14.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alignment Healthcare's current Return-on-Tangible-Equity is 29.18%. 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 Overvalued. The stock's GF Value™ is $19.11, compared to a current price of $23.26 — trading 21.7% above its estimated fair value. The current Return-on-Tangible-Equity is 29.18% and 106.7% above the Healthcare Plans industry median of 14.12. Alignment Healthcare's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alignment Healthcare (ALHC), the current Return-on-Tangible-Equity is 29.18% as of Mar. 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 overvalued.
The current stock price of $23.26 is trading 21.7% above its estimated GF Value™ of $19.11.
GuruFocus considers Alignment Healthcare to be Modestly Overvalued.
Key valuation signals for ALHC:
Return-on-Tangible-Equity: 29.18%
GF Value™: $19.11 vs. price of $23.26 (21.7% above fair value)
Industry Position: 106.7% above the Healthcare Plans median (#8 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.
81GF Score
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