Alight Inc (ALIT, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at a robust $5.36 billion, with the current stock price at $9.79. Over the past week, Alight has experienced a 7.74% gain, and looking at the past three months, the stock has surged by an impressive 18.57%. When compared to the GF Value of $9.33, Alight Inc is considered to be fairly valued, indicating that the stock price is aligned with the company's intrinsic value as calculated by GuruFocus.com.
Understanding Alight Inc's Business Model
Alight Inc operates within the competitive software industry, specializing in cloud-based human capital solutions. The company's services are integral for clients and employees managing health, wealth, and HR needs. With the majority of its revenue generated from the United States, Alight has established a strong foothold in its market segment. 
Assessing Alight's Profitability
Despite its recent stock performance, Alight's Profitability Rank is relatively low at 3/10. The company's operating margin stands at 1.38%, which is better than 45.69% of its industry peers. However, Alight's return on equity (ROE) is at -7.68%, which, while better than 33.51% of industry peers, indicates that the company is not generating positive net income with shareholders' equity. Similarly, the return on assets (ROA) is -3.17%, and the return on invested capital (ROIC) is 0.46%, both metrics showing that Alight is better than nearly half of its competitors but still has room for improvement. Alight has only been profitable for one year over the past decade, which is better than 9.76% of industry peers. 
Alight's Growth Trajectory
When it comes to growth, Alight Inc shows potential. The company's 3-year revenue growth rate per share is at 4.50%, outperforming 38.81% of its industry peers. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 5.46%, which is better than 26.4% of industry peers. These figures suggest that Alight is on a growth path, albeit not at the top of its industry. 
Key Shareholders in Alight
Alight's shareholder base includes notable investors who have significant stakes in the company. Larry Robbins (Trades, Portfolio) is the leading holder with 25,082,388 shares, representing a 5.07% share percentage. Following him is David Einhorn (Trades, Portfolio) with 9,241,670 shares, holding 1.87% of the company. Louis Moore Bacon (Trades, Portfolio) also has a stake with 3,416,585 shares, equating to 0.69% share percentage. The confidence of these prominent investors may signal a positive outlook for Alight's future.
Competitive Landscape
Alight Inc operates in a competitive landscape, with key players such as Sprinklr Inc (CXM, Financial) with a market cap of $3.56 billion, Pegasystems Inc (PEGA, Financial) at $5.39 billion, and Clearwater Analytics Holdings Inc (CWAN, Financial) at $3.62 billion. These companies, with market capitalizations close to Alight's, are significant competitors within the software industry.
Conclusion: Alight Inc's Market Position
In summary, Alight Inc's stock performance has been strong in recent months, with the company being fairly valued according to the GF Value. While the company's profitability metrics suggest there are areas for improvement, its growth rates indicate a steady upward trajectory. The presence of high-profile shareholders may provide additional confidence in the company's prospects. Compared to its competitors, Alight holds its own in the market, suggesting that it is a company worth watching for investors interested in the software industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
