ALIGN TECHNOLOGY INC (1ALGN.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1ALGN • US0162551016
134.4 EUR
+21.1 (+18.62%)
Last: Dec 29, 2025, 07:00 PM
Taking everything into account, 1ALGN scores 6 out of 10 in our fundamental rating. 1ALGN was compared to 68 industry peers in the Health Care Equipment & Supplies industry. 1ALGN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1ALGN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1ALGN was profitable.
- 1ALGN had a positive operating cash flow in the past year.
- 1ALGN had positive earnings in each of the past 5 years.
- 1ALGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1ALGN has a better Return On Assets (6.07%) than 67.69% of its industry peers.
- 1ALGN's Return On Equity of 9.57% is fine compared to the rest of the industry. 1ALGN outperforms 63.08% of its industry peers.
- With an excellent Return On Invested Capital value of 10.50%, 1ALGN belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1ALGN is in line with the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 9.57% | ||
| ROIC | 10.5% |
ROA(3y)6.72%
ROA(5y)13.99%
ROE(3y)11.08%
ROE(5y)21.89%
ROIC(3y)11.25%
ROIC(5y)11.65%
1.3 Margins
- The Profit Margin of 1ALGN (9.51%) is better than 67.69% of its industry peers.
- 1ALGN's Profit Margin has declined in the last couple of years.
- 1ALGN has a Operating Margin of 16.23%. This is in the better half of the industry: 1ALGN outperforms 72.31% of its industry peers.
- 1ALGN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 69.48%, 1ALGN is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
- 1ALGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.23% | ||
| PM (TTM) | 9.51% | ||
| GM | 69.48% |
OM growth 3Y-12.06%
OM growth 5Y-4.71%
PM growth 3Y-18.59%
PM growth 5Y-10.55%
GM growth 3Y-1.95%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1ALGN is creating some value.
- Compared to 1 year ago, 1ALGN has less shares outstanding
- The number of shares outstanding for 1ALGN has been reduced compared to 5 years ago.
- There is no outstanding debt for 1ALGN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 4.59 indicates that 1ALGN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.59, 1ALGN is doing good in the industry, outperforming 78.46% of the companies in the same industry.
- 1ALGN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.59 |
ROIC/WACC1.07
WACC9.81%
2.3 Liquidity
- 1ALGN has a Current Ratio of 1.29. This is a normal value and indicates that 1ALGN is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of 1ALGN (1.29) is worse than 60.00% of its industry peers.
- A Quick Ratio of 1.17 indicates that 1ALGN should not have too much problems paying its short term obligations.
- The Quick ratio of 1ALGN (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.76% over the past year.
- Measured over the past years, 1ALGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.91% on average per year.
- 1ALGN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
- Measured over the past years, 1ALGN shows a quite strong growth in Revenue. The Revenue has been growing by 10.69% on average per year.
EPS 1Y (TTM)3.76%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%11.06%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%1.82%
3.2 Future
- The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y11.34%
EPS Next 2Y9.33%
EPS Next 3Y9.06%
EPS Next 5Y10.83%
Revenue Next Year0.51%
Revenue Next 2Y1.93%
Revenue Next 3Y2.8%
Revenue Next 5Y6.37%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.17, which indicates a correct valuation of 1ALGN.
- 95.38% of the companies in the same industry are more expensive than 1ALGN, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. 1ALGN is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.02, 1ALGN is valued correctly.
- 1ALGN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1ALGN is cheaper than 80.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1ALGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
- 1ALGN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1ALGN is cheaper than 72.31% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ALGN indicates a rather cheap valuation: 1ALGN is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 13.42 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1ALGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)1.36
EPS Next 2Y9.33%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
- No dividends for 1ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ALIGN TECHNOLOGY INC / 1ALGN.MI FAQ
What is the ChartMill fundamental rating of ALIGN TECHNOLOGY INC (1ALGN.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1ALGN.MI.
Can you provide the valuation status for ALIGN TECHNOLOGY INC?
ChartMill assigns a valuation rating of 6 / 10 to ALIGN TECHNOLOGY INC (1ALGN.MI). This can be considered as Fairly Valued.
What is the profitability of 1ALGN stock?
ALIGN TECHNOLOGY INC (1ALGN.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for 1ALGN stock?
The financial health rating of ALIGN TECHNOLOGY INC (1ALGN.MI) is 7 / 10.
Can you provide the expected EPS growth for 1ALGN stock?
The Earnings per Share (EPS) of ALIGN TECHNOLOGY INC (1ALGN.MI) is expected to grow by 11.34% in the next year.