ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN - US0162551016 - Common Stock
132.94 USD
-2.99 (-2.2%)
133.75 USD
+0.81 (+0.61%)
Overall ALGN gets a fundamental rating of 6 out of 10. We evaluated ALGN against 190 industry peers in the Health Care Equipment & Supplies industry. ALGN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALGN is not valued too expensively and it also shows a decent growth rate. 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.
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
Looking at the Return On Assets, with a value of 7.04%, ALGN belongs to the top of the industry, outperforming 87.89% of the companies in the same industry.
ALGN has a better Return On Equity (11.18%) than 87.37% of its industry peers.
ALGN has a better Return On Invested Capital (10.50%) than 91.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALGN is above the industry average of 8.46%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 11.04%, ALGN belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
ALGN's Profit Margin has declined in the last couple of years.
ALGN has a better Operating Margin (16.14%) than 86.32% of its industry peers.
In the last couple of years the Operating Margin of ALGN has declined.
Looking at the Gross Margin, with a value of 69.84%, ALGN is in the better half of the industry, outperforming 79.47% of the companies in the same industry.
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 | 16.14% | ||
| 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%
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.
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 4.12. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
ALGN has a Altman-Z score of 4.12. This is in the better half of the industry: ALGN outperforms 75.79% of its industry peers.
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 | 4.12 |
ROIC/WACC1.2
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.23 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN has a Current ratio of 1.23. This is amonst the worse of the industry: ALGN underperforms 81.05% 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.
The Quick ratio of ALGN (1.10) is worse than 73.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| 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 3.29%.
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.
Looking at the last year, ALGN shows a small growth in Revenue. The Revenue has grown by 0.56% 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)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.
ALGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y10.07%
EPS Next 2Y8.74%
EPS Next 3Y8.61%
EPS Next 5Y10.97%
Revenue Next Year-0.02%
Revenue Next 2Y1.63%
Revenue Next 3Y2.59%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.13, the valuation of ALGN can be described as correct.
86.84% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. ALGN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.04, ALGN is valued correctly.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 90.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.54, ALGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 12.04 |
4.2 Price Multiples
87.89% 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 cheaply inside the industry as 91.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.26 | ||
| EV/EBITDA | 10.98 |
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)1.4
PEG (5Y)1.19
EPS Next 2Y8.74%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
132.94
-2.99 (-2.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change0.69%
Ins Owners0.67%
Ins Owner Change2.79%
Market Cap9.64B
Analysts78.33
Price Target190.53 (43.32%)
Short Float %3.41%
Short Ratio1.45
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)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)0%
PT rev (3m)-17.49%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)-2.11%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-3.55%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 12.04 | ||
| P/S | 2.43 | ||
| P/FCF | 15.26 | ||
| P/OCF | 13.18 | ||
| P/B | 2.46 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 10.98 |
EPS(TTM)9.41
EY7.08%
EPS(NY)11.04
Fwd EY8.31%
FCF(TTM)8.71
FCFY6.55%
OCF(TTM)10.09
OCFY7.59%
SpS54.69
BVpS53.98
TBVpS45.77
PEG (NY)1.4
PEG (5Y)1.19
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.12 |
F-Score7
WACC8.72%
ROIC/WACC1.2
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 Y10.07%
EPS Next 2Y8.74%
EPS Next 3Y8.61%
EPS Next 5Y10.97%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.56%
Revenue Next Year-0.02%
Revenue Next 2Y1.63%
Revenue Next 3Y2.59%
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%