170.815 USD
+4 (+2.4%)
We assign a fundamental rating of 6 out of 10 to ALGN. ALGN was compared to 185 industry peers in the Health Care Equipment & Supplies industry. ALGN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ALGN is not valued too expensively and it also shows a decent growth rate. With these ratings, ALGN could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ALGN had positive earnings in the past year.
ALGN had a positive operating cash flow in the past year.
Each year in the past 5 years ALGN has been profitable.
In the past 5 years ALGN always reported a positive cash flow from operatings.
1.2 Ratios
ALGN has a Return On Assets of 6.07%. This is amongst the best in the industry. ALGN outperforms 83.78% of its industry peers.
The Return On Equity of ALGN (9.57%) is better than 84.32% of its industry peers.
ALGN has a Return On Invested Capital of 10.50%. This is amongst the best in the industry. ALGN outperforms 90.27% of its industry peers.
ALGN had an Average Return On Invested Capital over the past 3 years of 11.25%. This is above the industry average of 8.84%.
| 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
ALGN's Profit Margin of 9.51% is amongst the best of the industry. ALGN outperforms 82.70% of its industry peers.
In the last couple of years the Profit Margin of ALGN has declined.
Looking at the Operating Margin, with a value of 16.23%, ALGN belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.48%, ALGN is in the better half of the industry, outperforming 76.76% of the companies in the same industry.
ALGN'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
ALGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ALGN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALGN has been reduced compared to 5 years ago.
There is no outstanding debt for ALGN. 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
ALGN has an Altman-Z score of 4.79. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.79, ALGN is doing good in the industry, outperforming 76.76% of the companies in the same industry.
There is no outstanding debt for ALGN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.07
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ALGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, ALGN is not doing good in the industry: 79.46% of the companies in the same industry are doing better.
A Quick Ratio of 1.17 indicates that ALGN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, ALGN is doing worse than 68.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
ALGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.76%.
Measured over the past years, ALGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.91% on average per year.
The Revenue has been growing slightly by 0.56% in the past year.
The Revenue has been growing by 10.69% on average over the past years. This is quite good.
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
ALGN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.83% yearly.
ALGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.37% yearly.
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
Based on the Price/Earnings ratio of 17.66, the valuation of ALGN can be described as rather expensive.
Based on the Price/Earnings ratio, ALGN is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
ALGN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.30, ALGN is valued correctly.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 89.73% of the companies in the same industry.
ALGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued cheaper than 83.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 89.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)1.48
EPS Next 2Y9.33%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:ALGN (1/8/2026, 3:43:08 PM)
170.815
+4 (+2.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.78%
Inst Owner Change0%
Ins Owners0.69%
Ins Owner Change1.24%
Market Cap12.26B
Revenue(TTM)3.98B
Net Income(TTM)378.59M
Analysts77.39
Price Target183.71 (7.55%)
Short Float %4.38%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-4.95%
Max EPS beat(2)6.53%
EPS beat(4)2
Avg EPS beat(4)1.18%
Min EPS beat(4)-4.95%
Max EPS beat(4)6.53%
EPS beat(8)5
Avg EPS beat(8)2.84%
EPS beat(12)8
Avg EPS beat(12)3.11%
EPS beat(16)9
Avg EPS beat(16)-1.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.18%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)-1.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.6%
Revenue beat(16)3
Avg Revenue beat(16)-2.32%
PT rev (1m)-0.4%
PT rev (3m)-3.52%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.3 | ||
| P/S | 3.08 | ||
| P/FCF | 21.63 | ||
| P/OCF | 18.68 | ||
| P/B | 3.1 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 14.33 |
EPS(TTM)9.67
EY5.66%
EPS(NY)11.16
Fwd EY6.54%
FCF(TTM)7.9
FCFY4.62%
OCF(TTM)9.14
OCFY5.35%
SpS55.51
BVpS55.16
TBVpS46.93
PEG (NY)1.56
PEG (5Y)1.48
Graham Number109.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 9.57% | ||
| ROCE | 15.14% | ||
| ROIC | 10.5% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 12.91% | ||
| OM | 16.23% | ||
| PM (TTM) | 9.51% | ||
| GM | 69.48% | ||
| FCFM | 14.22% |
ROA(3y)6.72%
ROA(5y)13.99%
ROE(3y)11.08%
ROE(5y)21.89%
ROIC(3y)11.25%
ROIC(5y)11.65%
ROICexc(3y)12.85%
ROICexc(5y)14.58%
ROICexgc(3y)15.07%
ROICexgc(5y)17.6%
ROCE(3y)16.23%
ROCE(5y)16.81%
ROICexgc growth 3Y-21.83%
ROICexgc growth 5Y-25.54%
ROICexc growth 3Y-20.41%
ROICexc growth 5Y-25.98%
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%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.62% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.04% | ||
| Profit Quality | 149.64% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.79 |
F-Score7
WACC9.79%
ROIC/WACC1.07
Cap/Depr(3y)145.51%
Cap/Depr(5y)194.24%
Cap/Sales(3y)5.1%
Cap/Sales(5y)6.34%
Profit Quality(3y)120.32%
Profit Quality(5y)97.89%
High Growth Momentum
Growth
EPS 1Y (TTM)3.76%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%11.06%
EPS Next Y11.34%
EPS Next 2Y9.33%
EPS Next 3Y9.06%
EPS Next 5Y10.83%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%1.82%
Revenue Next Year0.51%
Revenue Next 2Y1.93%
Revenue Next 3Y2.8%
Revenue Next 5Y6.37%
EBIT growth 1Y-4.86%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year23.45%
EBIT Next 3Y10.5%
EBIT Next 5Y11.14%
FCF growth 1Y-17.43%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y-25.75%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%
ALIGN TECHNOLOGY INC / ALGN FAQ
What is the ChartMill fundamental rating of ALIGN TECHNOLOGY INC (ALGN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALGN.
Can you provide the valuation status for ALIGN TECHNOLOGY INC?
ChartMill assigns a valuation rating of 6 / 10 to ALIGN TECHNOLOGY INC (ALGN). This can be considered as Fairly Valued.
Can you provide the profitability details for ALIGN TECHNOLOGY INC?
ALIGN TECHNOLOGY INC (ALGN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ALIGN TECHNOLOGY INC (ALGN) stock?
The Price/Earnings (PE) ratio for ALIGN TECHNOLOGY INC (ALGN) is 17.66 and the Price/Book (PB) ratio is 3.1.