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ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Alignment Healthcare's ROE % distribution charts can be found below:
* The bar in red indicates where Alignment Healthcare's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Alignment Healthcare (ALHC) has a ROE % of 61.96% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Alignment Healthcare and its competitors. According to the industry distribution chart, Alignment Healthcare ranks #6 out of 18 companies in the Healthcare Plans industry, placing it in the top 33.3%.
Is Alignment Healthcare's ROE % too high?
Alignment Healthcare's current ROE % is 61.96%. The Healthcare Plans industry median ROE % is 8.52. Alignment Healthcare's value of 61.96% is 627.2% above this industry median. Based on the distribution chart, Alignment Healthcare ranks #6 out of 18 companies in the Healthcare Plans industry, which is above 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 ROE % compare to PGNY and CLOV?
According to the Healthcare Plans industry distribution chart, Alignment Healthcare ranks #6 out of 18 companies for ROE %. This puts Alignment Healthcare in the upper half of its industry. The industry median ROE % is 8.52. Alignment Healthcare's value of 61.96% is 627.2% 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 ROE % for a Healthcare Plans company?
The median ROE % among Healthcare Plans companies is 8.52, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alignment Healthcare's current ROE % of 61.96% is 627.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Alignment Healthcare and its competitors. For the Healthcare Plans industry, the median ROE % is 8.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alignment Healthcare's current ROE % is 61.96%. 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 ROE % is 61.96% and 627.2% above the Healthcare Plans industry median of 8.52. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Alignment Healthcare (ALHC), the current ROE % is 61.96% 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:
ROE %: 61.96%
GF Value™: $20.32 vs. price of $14.84 (27% below fair value)
Industry Position: 627.2% above the Healthcare Plans median (#6 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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