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ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis

NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock - Currency: USD

146.41  +1.47 (+1.01%)

Fundamental Rating

6

ALGN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ALGN suitable for value and quality investing!


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year ALGN was profitable.
ALGN had a positive operating cash flow in the past year.
ALGN had positive earnings in each of the past 5 years.
In the past 5 years ALGN always reported a positive cash flow from operatings.
ALGN Yearly Net Income VS EBIT VS OCF VS FCFALGN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

The Return On Assets of ALGN (7.04%) is better than 88.77% of its industry peers.
ALGN has a Return On Equity of 11.18%. This is amongst the best in the industry. ALGN outperforms 87.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.50%, ALGN belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALGN is above the industry average of 8.08%.
Industry RankSector Rank
ROA 7.04%
ROE 11.18%
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%
ALGN Yearly ROA, ROE, ROICALGN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

ALGN has a Profit Margin of 11.04%. This is amongst the best in the industry. ALGN outperforms 84.49% 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 16.14%, ALGN belongs to the top of the industry, outperforming 86.10% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
ALGN has a Gross Margin of 69.84%. This is in the better half of the industry: ALGN outperforms 79.68% 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 RankSector Rank
OM 16.14%
PM (TTM) 11.04%
GM 69.84%
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%
ALGN Yearly Profit, Operating, Gross MarginsALGN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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7

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.
The number of shares outstanding for ALGN has been reduced compared to 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.
ALGN Yearly Shares OutstandingALGN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ALGN Yearly Total Debt VS Total AssetsALGN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

ALGN has an Altman-Z score of 4.34. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.34, ALGN is in the better half of the industry, outperforming 76.47% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.34
ROIC/WACC1.17
WACC8.97%
ALGN Yearly LT Debt VS Equity VS FCFALGN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

ALGN has a Current Ratio of 1.23. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
ALGN has a Current ratio of 1.23. This is amonst the worse of the industry: ALGN underperforms 82.35% of its industry peers.
ALGN has a Quick Ratio of 1.10. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, ALGN is not doing good in the industry: 74.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.1
ALGN Yearly Current Assets VS Current LiabilitesALGN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.29% over the past year.
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.
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)3.29%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%3.32%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.56%

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 10.97% yearly.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 6.61% on average per year.
EPS Next Y12.44%
EPS Next 2Y10.82%
EPS Next 3Y10.74%
EPS Next 5Y10.97%
Revenue Next Year3.65%
Revenue Next 2Y4.63%
Revenue Next 3Y5.02%
Revenue Next 5Y6.61%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ALGN Yearly Revenue VS EstimatesALGN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ALGN Yearly EPS VS EstimatesALGN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.56, which indicates a correct valuation of ALGN.
Based on the Price/Earnings ratio, ALGN is valued cheaper than 86.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, ALGN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.76, the valuation of ALGN can be described as correct.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaply inside the industry as 88.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, ALGN is valued rather cheaply.
Industry RankSector Rank
PE 15.56
Fwd PE 12.76
ALGN Price Earnings VS Forward Price EarningsALGN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

86.63% of the companies in the same industry are more expensive than ALGN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaper than 90.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.8
EV/EBITDA 12.07
ALGN Per share dataALGN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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)1.25
PEG (5Y)1.31
EPS Next 2Y10.82%
EPS Next 3Y10.74%

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0

5. Dividend

5.1 Amount

ALGN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ALIGN TECHNOLOGY INC

NASDAQ:ALGN (8/19/2025, 11:31:53 AM)

146.41

+1.47 (+1.01%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)07-30 2025-07-30/amc
Earnings (Next)10-29 2025-10-29/amc
Inst Owners94.76%
Inst Owner Change0.69%
Ins Owners0.67%
Ins Owner Change0.83%
Market Cap10.61B
Analysts77.5
Price Target190.53 (30.13%)
Short Float %4.05%
Short Ratio1.82
Dividend
Industry RankSector 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)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-4.95%
Max EPS beat(2)5.2%
EPS beat(4)1
Avg EPS beat(4)-0.52%
Min EPS beat(4)-4.95%
Max EPS beat(4)5.2%
EPS beat(8)4
Avg EPS beat(8)1.11%
EPS beat(12)7
Avg EPS beat(12)-0.67%
EPS beat(16)9
Avg EPS beat(16)-0.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.95%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-1.56%
Revenue beat(8)2
Avg Revenue beat(8)-2.47%
Revenue beat(12)3
Avg Revenue beat(12)-2.3%
Revenue beat(16)4
Avg Revenue beat(16)-2.2%
PT rev (1m)-17.49%
PT rev (3m)-18.44%
EPS NQ rev (1m)-10.3%
EPS NQ rev (3m)-6.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-5.77%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 15.56
Fwd PE 12.76
P/S 2.68
P/FCF 16.8
P/OCF 14.52
P/B 2.71
P/tB 3.2
EV/EBITDA 12.07
EPS(TTM)9.41
EY6.43%
EPS(NY)11.47
Fwd EY7.83%
FCF(TTM)8.71
FCFY5.95%
OCF(TTM)10.09
OCFY6.89%
SpS54.7
BVpS53.98
TBVpS45.78
PEG (NY)1.25
PEG (5Y)1.31
Profitability
Industry RankSector Rank
ROA 7.04%
ROE 11.18%
ROCE 15.15%
ROIC 10.5%
ROICexc 13.34%
ROICexgc 16.25%
OM 16.14%
PM (TTM) 11.04%
GM 69.84%
FCFM 15.93%
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 63.95%
Cap/Sales 2.51%
Interest Coverage 250
Cash Conversion 91.91%
Profit Quality 144.32%
Current Ratio 1.23
Quick Ratio 1.1
Altman-Z 4.34
F-Score7
WACC8.97%
ROIC/WACC1.17
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)3.29%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%3.32%
EPS Next Y12.44%
EPS Next 2Y10.82%
EPS Next 3Y10.74%
EPS Next 5Y10.97%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.56%
Revenue Next Year3.65%
Revenue Next 2Y4.63%
Revenue Next 3Y5.02%
Revenue Next 5Y6.61%
EBIT growth 1Y-6.39%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year19.74%
EBIT Next 3Y10.28%
EBIT Next 5Y11.32%
FCF growth 1Y3.26%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y-15.28%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%