ALIGN TECHNOLOGY INC (ALGN)
US0162551016 - Common Stock
ALGN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 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. This makes ALGN very considerable 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.
Each year in the past 5 years ALGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALGN (7.31%) is better than 87.18% of its industry peers.
ALGN has a Return On Equity of 12.26%. This is amongst the best in the industry. ALGN outperforms 87.18% of its industry peers.
ALGN's Return On Invested Capital of 10.60% is amongst the best of the industry. ALGN outperforms 92.31% of its industry peers.
ALGN had an Average Return On Invested Capital over the past 3 years of 12.31%. This is above the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 12.26% | ||
| ROIC | 10.6% |
ROA(3y)8.8%
ROA(5y)16.17%
ROE(3y)14.54%
ROE(5y)26.28%
ROIC(3y)12.31%
ROIC(5y)13.18%
1.3 Margins
Looking at the Profit Margin, with a value of 11.52%, ALGN belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
In the last couple of years the Profit Margin of ALGN has declined.
Looking at the Operating Margin, with a value of 17.00%, ALGN belongs to the top of the industry, outperforming 90.26% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
ALGN has a better Gross Margin (70.09%) than 81.54% of its industry peers.
ALGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17% | ||
| PM (TTM) | 11.52% | ||
| GM | 70.09% |
OM growth 3Y2.77%
OM growth 5Y-6.45%
PM growth 3Y-45.67%
PM growth 5Y-10.75%
GM growth 3Y-0.59%
GM growth 5Y-0.98%
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.
Compared to 1 year ago, ALGN has less shares outstanding
Compared to 5 years ago, ALGN has less shares outstanding
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 7.13. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALGN (7.13) is better than 85.64% 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 | 7.13 |
ROIC/WACC1.06
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.18 indicates that ALGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, ALGN is not doing good in the industry: 90.77% of the companies in the same industry are doing better.
A Quick Ratio of 1.04 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN's Quick ratio of 1.04 is on the low side compared to the rest of the industry. ALGN is outperformed by 83.59% of its industry peers.
The current and quick ratio evaluation for ALGN is rather negative, while it does have 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 | 1.18 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.11% over the past year.
The Earnings Per Share has been growing by 11.86% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.42% in the past year.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)19.11%
EPS 3Y17.96%
EPS 5Y11.86%
EPS growth Q2Q39.88%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y16.04%
Revenue growth 5Y14.45%
Revenue growth Q2Q6.13%
3.2 Future
Based on estimates for the next years, ALGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.08% on average per year.
ALGN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y9.87%
EPS Next 2Y11.6%
EPS Next 3Y13.48%
EPS Next 5Y14.08%
Revenue Next Year5.39%
Revenue Next 2Y7.48%
Revenue Next 3Y8.52%
Revenue Next 5Y10.46%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.98, the valuation of ALGN can be described as expensive.
ALGN's Price/Earnings ratio is a bit cheaper when compared to the industry. ALGN is cheaper than 74.87% of the companies in the same industry.
ALGN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.95.
The Price/Forward Earnings ratio is 31.84, which means the current valuation is very expensive for ALGN.
Based on the Price/Forward Earnings ratio, ALGN is valued a bit cheaper than the industry average as 76.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, ALGN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 31.84 |
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 73.85% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 82.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.23 | ||
| EV/EBITDA | 26.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALGN does not grow enough to justify the current Price/Earnings ratio.
ALGN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ALGN's earnings are expected to grow with 13.48% in the coming years.
PEG (NY)3.54
PEG (5Y)2.95
EPS Next 2Y11.6%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALIGN TECHNOLOGY INC
NASDAQ:ALGN (4/22/2024, 7:00:00 PM)
After market: 300.82 0 (0%)300.82
+1.84 (+0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 31.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.54
PEG (5Y)2.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 12.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17% | ||
| PM (TTM) | 11.52% | ||
| GM | 70.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.11%
EPS 3Y17.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.42%
Revenue growth 3Y16.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y