ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN • US0162551016
190.1 USD
+0.9 (+0.48%)
At close: Feb 27, 2026
190.1 USD
0 (0%)
After Hours: 2/27/2026, 8:00:00 PM
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 gets an excellent profitability rating and is at the same time showing great financial health properties. ALGN has a decent growth rate and is not valued too expensively. These ratings would make ALGN suitable 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.
- ALGN had positive earnings in each of the past 5 years.
- Of the past 5 years ALGN 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.07%, ALGN belongs to the best of the industry, outperforming 84.86% of the companies in the same industry.
- ALGN has a better Return On Equity (9.57%) than 84.86% of its industry peers.
- ALGN's Return On Invested Capital of 10.55% is amongst the best of the industry. ALGN outperforms 90.81% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALGN is in line with the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 9.57% | ||
| ROIC | 10.55% |
ROA(3y)6.89%
ROA(5y)7.95%
ROE(3y)11.11%
ROE(5y)12.94%
ROIC(3y)10.68%
ROIC(5y)12.06%
1.3 Margins
- ALGN's Profit Margin of 9.51% is amongst the best of the industry. ALGN outperforms 83.24% of its industry peers.
- In the last couple of years the Profit Margin of ALGN has declined.
- ALGN has a Operating Margin of 16.23%. This is amongst the best in the industry. ALGN outperforms 85.41% of its industry peers.
- ALGN's Operating Margin has declined in the last couple of years.
- ALGN has a Gross Margin of 69.48%. This is in the better half of the industry: ALGN outperforms 77.84% of its industry peers.
- In the last couple of years the Gross Margin of ALGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.23% | ||
| PM (TTM) | 9.51% | ||
| GM | 69.48% |
OM growth 3Y-6.09%
OM growth 5Y-1.52%
PM growth 3Y1.65%
PM growth 5Y-32.36%
GM growth 3Y-1.6%
GM growth 5Y-1.19%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALGN is creating some value.
- ALGN has less shares outstanding than it did 1 year ago.
- ALGN has less shares outstanding than it did 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
- An Altman-Z score of 5.21 indicates that ALGN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.21, ALGN is in the better half of 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 | 5.21 |
ROIC/WACC1.07
WACC9.88%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that ALGN should not have too much problems paying its short term obligations.
- ALGN has a Current ratio of 1.29. This is amonst the worse of the industry: ALGN underperforms 80.54% of its industry peers.
- A Quick Ratio of 1.17 indicates that ALGN should not have too much problems paying its short term obligations.
- ALGN has a worse Quick ratio (1.17) than 69.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- ALGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.63%, which is quite good.
- The Earnings Per Share has been growing by 14.96% on average over the past years. This is quite good.
- Looking at the last year, ALGN shows a small growth in Revenue. The Revenue has grown by 0.90% in the last year.
- ALGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.30% yearly.
EPS 1Y (TTM)12.63%
EPS 3Y13.37%
EPS 5Y14.96%
EPS Q2Q%34.84%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y2.61%
Revenue growth 5Y10.3%
Sales Q2Q%5.26%
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 10.71% yearly.
- Based on estimates for the next years, ALGN will show a quite strong growth in Revenue. The Revenue will grow by 13.46% on average per year.
EPS Next Y6.49%
EPS Next 2Y7.51%
EPS Next 3Y9%
EPS Next 5Y10.71%
Revenue Next Year3.61%
Revenue Next 2Y4.11%
Revenue Next 3Y5.84%
Revenue Next 5Y13.46%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.07, ALGN is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 86.49% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ALGN to the average of the S&P500 Index (27.10), we can say ALGN is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 16.97, ALGN is valued correctly.
- 85.95% of the companies in the same industry are more expensive than ALGN, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, ALGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
- ALGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALGN is cheaper than 80.54% of the companies in the same industry.
- 85.41% of the companies in the same industry are more expensive than ALGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.08 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)1.21
EPS Next 2Y7.51%
EPS Next 3Y9%
5. Dividend
5.1 Amount
- No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
190.1
+0.9 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners97.78%
Inst Owner Change-2.96%
Ins Owners0.69%
Ins Owner Change-1.31%
Market Cap13.64B
Revenue(TTM)4.03B
Net Income(TTM)378.59M
Analysts77.5
Price Target187.08 (-1.59%)
Short Float %2.88%
Short Ratio1.62
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)1.46%
PT rev (3m)1.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 16.97 | ||
| P/S | 3.42 | ||
| P/FCF | 24.08 | ||
| P/OCF | 20.79 | ||
| P/B | 3.45 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)10.52
EY5.53%
EPS(NY)11.2
Fwd EY5.89%
FCF(TTM)7.9
FCFY4.15%
OCF(TTM)9.14
OCFY4.81%
SpS55.51
BVpS55.16
TBVpS46.93
PEG (NY)2.78
PEG (5Y)1.21
Graham Number114.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 9.57% | ||
| ROCE | 15.14% | ||
| ROIC | 10.55% | ||
| ROICexc | 11.09% | ||
| ROICexgc | 12.97% | ||
| OM | 16.23% | ||
| PM (TTM) | 9.51% | ||
| GM | 69.48% | ||
| FCFM | 14.22% |
ROA(3y)6.89%
ROA(5y)7.95%
ROE(3y)11.11%
ROE(5y)12.94%
ROIC(3y)10.68%
ROIC(5y)12.06%
ROICexc(3y)12.11%
ROICexc(5y)15.06%
ROICexgc(3y)14.28%
ROICexgc(5y)18.05%
ROCE(3y)15.33%
ROCE(5y)17.31%
ROICexgc growth 3Y-5.05%
ROICexgc growth 5Y2.48%
ROICexc growth 3Y-5.64%
ROICexc growth 5Y3.62%
OM growth 3Y-6.09%
OM growth 5Y-1.52%
PM growth 3Y1.65%
PM growth 5Y-32.36%
GM growth 3Y-1.6%
GM growth 5Y-1.19%
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 | 5.21 |
F-Score7
WACC9.88%
ROIC/WACC1.07
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.63%
EPS 3Y13.37%
EPS 5Y14.96%
EPS Q2Q%34.84%
EPS Next Y6.49%
EPS Next 2Y7.51%
EPS Next 3Y9%
EPS Next 5Y10.71%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y2.61%
Revenue growth 5Y10.3%
Sales Q2Q%5.26%
Revenue Next Year3.61%
Revenue Next 2Y4.11%
Revenue Next 3Y5.84%
Revenue Next 5Y13.46%
EBIT growth 1Y-4.86%
EBIT growth 3Y-3.64%
EBIT growth 5Y8.62%
EBIT Next Year23.96%
EBIT Next 3Y12.69%
EBIT Next 5Y12.86%
FCF growth 1Y52.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.5%
OCF growth 3YN/A
OCF growth 5YN/A
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 18.07 and the Price/Book (PB) ratio is 3.45.