ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock - Currency: USD
Overall ALGN gets a fundamental rating of 6 out of 10. We evaluated ALGN against 189 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 has a correct valuation and a medium 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.
ALGN had positive earnings in each of the past 5 years.
Each year in the past 5 years ALGN had a positive operating cash flow.
1.2 Ratios
ALGN has a better Return On Assets (6.78%) than 88.89% of its industry peers.
ALGN has a Return On Equity of 10.94%. This is amongst the best in the industry. ALGN outperforms 86.24% of its industry peers.
ALGN has a better Return On Invested Capital (11.15%) than 93.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALGN is above the industry average of 7.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 10.94% | ||
| ROIC | 11.15% |
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
With an excellent Profit Margin value of 10.54%, ALGN belongs to the best of the industry, outperforming 84.66% of the companies in the same industry.
In the last couple of years the Profit Margin of ALGN has declined.
ALGN's Operating Margin of 16.80% is amongst the best of the industry. ALGN outperforms 88.36% of its industry peers.
In the last couple of years the Operating Margin of ALGN has declined.
ALGN has a Gross Margin of 70.00%. This is in the better half of the industry: ALGN outperforms 79.37% 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 | 16.8% | ||
| PM (TTM) | 10.54% | ||
| GM | 70% |
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.
ALGN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ALGN has an Altman-Z score of 5.04. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
ALGN's Altman-Z score of 5.04 is fine compared to the rest of the industry. ALGN outperforms 77.78% of its industry peers.
ALGN 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 | 5.04 |
ROIC/WACC1.22
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.22 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN has a Current ratio of 1.22. This is amonst the worse of the industry: ALGN underperforms 82.01% of its industry peers.
A Quick Ratio of 1.10 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN has a worse Quick ratio (1.10) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
ALGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.60%.
The Earnings Per Share has been growing by 11.91% 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 3.54% in the last year.
Measured over the past years, ALGN shows a quite strong growth in Revenue. The Revenue has been growing by 10.69% on average per year.
EPS 1Y (TTM)4.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%-0.47%
Revenue 1Y (TTM)3.54%
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 12.09% yearly.
ALGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.98% yearly.
EPS Next Y12.35%
EPS Next 2Y10.78%
EPS Next 3Y10.78%
EPS Next 5Y12.09%
Revenue Next Year3.6%
Revenue Next 2Y4.59%
Revenue Next 3Y5.06%
Revenue Next 5Y6.98%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.57, ALGN is valued on the expensive side.
81.48% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALGN to the average of the S&P500 Index (26.60), we can say ALGN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.93, ALGN is valued correctly.
ALGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALGN is cheaper than 82.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. ALGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGN indicates a somewhat cheap valuation: ALGN is cheaper than 79.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaper than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 15.09 |
4.3 Compensation for Growth
ALGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)1.64
EPS Next 2Y10.78%
EPS Next 3Y10.78%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.58
-2.26 (-1.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change1.25%
Ins Owners0.63%
Ins Owner Change0.44%
Market Cap13.37B
Analysts75.83
Price Target233.62 (27.95%)
Short Float %4.67%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-1.15%
Min EPS beat(2)-2.04%
Max EPS beat(2)-0.26%
EPS beat(4)2
Avg EPS beat(4)1.74%
Min EPS beat(4)-2.04%
Max EPS beat(4)6.7%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)6
Avg EPS beat(12)-2.19%
EPS beat(16)10
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-2.89%
Max Revenue beat(2)-1.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)0.36%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-2.33%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)-7.31%
PT rev (3m)-12.1%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)5.29%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 15.93 | ||
| P/S | 3.34 | ||
| P/FCF | 21.47 | ||
| P/OCF | 18.11 | ||
| P/B | 3.47 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 15.09 |
EPS(TTM)9.33
EY5.11%
EPS(NY)11.46
Fwd EY6.28%
FCF(TTM)8.51
FCFY4.66%
OCF(TTM)10.08
OCFY5.52%
SpS54.62
BVpS52.62
TBVpS45.16
PEG (NY)1.58
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 10.94% | ||
| ROCE | 16.08% | ||
| ROIC | 11.15% | ||
| ROICexc | 14.86% | ||
| ROICexgc | 18% | ||
| OM | 16.8% | ||
| PM (TTM) | 10.54% | ||
| GM | 70% | ||
| FCFM | 15.57% |
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)14.94%
ROICexc(5y)15.83%
ROICexgc(3y)17.96%
ROICexgc(5y)19.34%
ROCE(3y)16.23%
ROCE(5y)16.81%
ROICexcg growth 3Y-14.88%
ROICexcg growth 5Y-21.64%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y-22.73%
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 | 79.69% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.38% | ||
| Profit Quality | 147.77% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 5.04 |
F-Score7
WACC9.1%
ROIC/WACC1.22
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)4.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%-0.47%
EPS Next Y12.35%
EPS Next 2Y10.78%
EPS Next 3Y10.78%
EPS Next 5Y12.09%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.82%
Revenue Next Year3.6%
Revenue Next 2Y4.59%
Revenue Next 3Y5.06%
Revenue Next 5Y6.98%
EBIT growth 1Y2.32%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year18.93%
EBIT Next 3Y14.21%
EBIT Next 5Y12.62%
FCF growth 1Y2.4%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y-6.05%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%