ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ALGN. ALGN was compared to 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 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
In the past year ALGN was profitable.
In the past year ALGN had a positive cash flow from operations.
In the past 5 years ALGN has always been profitable.
ALGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALGN's Return On Assets of 6.71% is amongst the best of the industry. ALGN outperforms 88.77% of its industry peers.
ALGN has a Return On Equity of 10.79%. This is amongst the best in the industry. ALGN outperforms 86.63% of its industry peers.
With an excellent Return On Invested Capital value of 11.00%, ALGN belongs to the best of the industry, outperforming 93.05% 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 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 10.79% | ||
| ROIC | 11% |
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 10.29% is amongst the best of the industry. ALGN outperforms 84.49% of its industry peers.
ALGN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.40%, ALGN belongs to the top of the industry, outperforming 86.63% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 69.87%, ALGN belongs to the best of the industry, outperforming 80.21% 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 | 16.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 69.87% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALGN is still 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
An Altman-Z score of 5.34 indicates that ALGN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.34, ALGN is doing good in the industry, outperforming 77.01% 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 | 5.34 |
ROIC/WACC1.22
WACC8.99%
2.3 Liquidity
ALGN has a Current Ratio of 1.21. 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 1.21. This is amonst the worse of the industry: ALGN underperforms 82.35% of its industry peers.
A Quick Ratio of 1.08 indicates that ALGN should not have too much problems paying its short term obligations.
The Quick ratio of ALGN (1.08) is worse than 75.40% of its industry peers.
ALGN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 |
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%.
ALGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
Looking at the last year, ALGN shows a small growth in Revenue. The Revenue has grown by 1.64% in the last year.
ALGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.69% yearly.
EPS 1Y (TTM)4.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%-0.47%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.82%
3.2 Future
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y12.44%
EPS Next 2Y10.82%
EPS Next 3Y10.74%
EPS Next 5Y12.92%
Revenue Next Year3.6%
Revenue Next 2Y4.59%
Revenue Next 3Y5.04%
Revenue Next 5Y7.34%
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
A Price/Earnings ratio of 21.10 indicates a rather expensive valuation of ALGN.
Based on the Price/Earnings ratio, ALGN is valued cheaper than 80.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. ALGN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.16, the valuation of ALGN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, ALGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued a bit cheaper than 77.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaply inside the industry as 86.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.62 | ||
| EV/EBITDA | 16.65 |
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 excellent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)1.77
EPS Next 2Y10.82%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
196.82
-0.16 (-0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.18%
Inst Owner Change1.77%
Ins Owners0.67%
Ins Owner Change0.65%
Market Cap14.27B
Analysts76.67
Price Target230.92 (17.33%)
Short Float %4.46%
Short Ratio3.05
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)1
Avg EPS beat(2)1.58%
Min EPS beat(2)-2.04%
Max EPS beat(2)5.2%
EPS beat(4)2
Avg EPS beat(4)1.37%
Min EPS beat(4)-2.04%
Max EPS beat(4)5.2%
EPS beat(8)5
Avg EPS beat(8)2.64%
EPS beat(12)7
Avg EPS beat(12)-1.25%
EPS beat(16)10
Avg EPS beat(16)0.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)-1.56%
Revenue beat(8)2
Avg Revenue beat(8)-1.78%
Revenue beat(12)3
Avg Revenue beat(12)-2.06%
Revenue beat(16)5
Avg Revenue beat(16)-1.52%
PT rev (1m)-1.15%
PT rev (3m)-9.56%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)0.08%
EPS NY rev (3m)5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.16 | ||
| P/S | 3.58 | ||
| P/FCF | 22.62 | ||
| P/OCF | 18.72 | ||
| P/B | 3.76 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)9.33
EY4.74%
EPS(NY)11.47
Fwd EY5.83%
FCF(TTM)8.7
FCFY4.42%
OCF(TTM)10.52
OCFY5.34%
SpS54.92
BVpS52.35
TBVpS44.62
PEG (NY)1.7
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 10.79% | ||
| ROCE | 15.88% | ||
| ROIC | 11% | ||
| ROICexc | 13.97% | ||
| ROICexgc | 16.89% | ||
| OM | 16.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 69.87% | ||
| FCFM | 15.84% |
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-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.95% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.79% | ||
| Profit Quality | 154% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 5.34 |
F-Score6
WACC8.99%
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 Y12.44%
EPS Next 2Y10.82%
EPS Next 3Y10.74%
EPS Next 5Y12.92%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.82%
Revenue Next Year3.6%
Revenue Next 2Y4.59%
Revenue Next 3Y5.04%
Revenue Next 5Y7.34%
EBIT growth 1Y-3.59%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year22.41%
EBIT Next 3Y13.34%
EBIT Next 5Y13.42%
FCF growth 1Y34.37%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y3.27%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%