ALHC (ALHC): a likely value trap?

Avoid — management itself just cut near-term profits, admitted rising medical costs and Star Rating risk, and the CEO is selling shares.

⚠ TRAP Fundamentals66/100

Fell 24% in 10 trading day(s) — now $10.37

Why ALHC dropped

The stock has fallen in a series of steps since a Q2 earnings call where management announced it would reinvest profits (cutting second-half earnings), then continued dropping this week after a conference presentation where the company disclosed extra unplanned spending and acknowledged "near-term pressure from medical costs, extra investment spending and investor concern over Star Ratings," plus claims-system problems.

Fwd P/E 13.8Op margin 3.2%Rev growth 31.6%Debt/equity 124.7%Analyst upside 132.2%

How this scored 66/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 0.9%

✅ Generates cash Free cash flow $189M

✅ Not drowning in debt Debt/equity 124.7% (limit 200%)

✅ Can pay its bills Current ratio 1.7 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 8/25

Operating margin 3.2% 1/9

Net profit margin 0.9% 0/8

Return on equity 20.0% 6/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 31.6% 9/9

Earnings growth 142.9% 8/8

Expected profit change 296.1% 8/8

Value Is it cheap right now? 18/25

Forward P/E 13.8 8/10

PEG ratio unknown 2/8

Analyst target upside 132.2% 7/7

Balance sheet Will it survive? 15/25

Debt / equity 124.7% 4/10

Current ratio 1.7 4/8

Free cash flow $189M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-16. Research only — not financial advice.