ALIGN TECHNOLOGY INC (ALGN) Fundamental Analysis & Valuation

NASDAQ:ALGN • US0162551016

Current stock price

166.38 USD
-10.95 (-6.17%)
At close:
166.38 USD
0 (0%)
After Hours:

This ALGN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ALGN Profitability Analysis

1.1 Basic Checks

  • ALGN had positive earnings in the past year.
  • In the past year ALGN had a positive cash flow from operations.
  • Each year in the past 5 years ALGN has been profitable.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • ALGN's Return On Assets of 6.58% is amongst the best of the industry. ALGN outperforms 84.66% of its industry peers.
  • ALGN has a better Return On Equity (10.13%) than 83.60% of its industry peers.
  • With an excellent Return On Invested Capital value of 10.15%, ALGN belongs to the best of the industry, outperforming 89.42% of the companies in the same industry.
  • ALGN had an Average Return On Invested Capital over the past 3 years of 10.91%. This is in line with the industry average of 9.31%.
Industry RankSector Rank
ROA 6.58%
ROE 10.13%
ROIC 10.15%
ROA(3y)6.89%
ROA(5y)7.95%
ROE(3y)11.11%
ROE(5y)12.94%
ROIC(3y)10.91%
ROIC(5y)12.2%
ALGN Yearly ROA, ROE, ROICALGN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • ALGN's Profit Margin of 10.17% is amongst the best of the industry. ALGN outperforms 84.66% 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 15.58%, ALGN belongs to the top of the industry, outperforming 84.66% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ALGN has remained more or less at the same level.
  • With a decent Gross Margin value of 68.27%, ALGN is doing good in the industry, outperforming 75.66% of the companies in the same industry.
  • ALGN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.58%
PM (TTM) 10.17%
GM 68.27%
OM growth 3Y-3.82%
OM growth 5Y-0.1%
PM growth 3Y1.65%
PM growth 5Y-32.36%
GM growth 3Y-1.08%
GM growth 5Y-0.87%
ALGN Yearly Profit, Operating, Gross MarginsALGN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

2. ALGN Health Analysis

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.
  • 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.
ALGN Yearly Shares OutstandingALGN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
ALGN Yearly Total Debt VS Total AssetsALGN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • ALGN has an Altman-Z score of 5.14. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
  • ALGN has a better Altman-Z score (5.14) than 79.89% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.14
ROIC/WACC0.95
WACC10.7%
ALGN Yearly LT Debt VS Equity VS FCFALGN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • ALGN has a Current Ratio of 1.36. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.36, ALGN is doing worse than 79.37% of the companies in the same industry.
  • A Quick Ratio of 1.24 indicates that ALGN should not have too much problems paying its short term obligations.
  • ALGN's Quick ratio of 1.24 is on the low side compared to the rest of the industry. ALGN is outperformed by 67.20% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.24
ALGN Yearly Current Assets VS Current LiabilitesALGN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ALGN Growth Analysis

3.1 Past

  • ALGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.63%, which is quite good.
  • Measured over the past years, ALGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.96% on average per year.
  • The Revenue has been growing slightly by 0.90% in the past year.
  • The Revenue has been growing by 10.30% on average over the past years. This is quite good.
EPS 1Y (TTM)12.63%
EPS 3Y13.37%
EPS 5Y14.96%
EPS Q2Q%34.84%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y2.61%
Revenue growth 5Y10.3%
Sales Q2Q%5.26%

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 10.71% on average per year.
  • ALGN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.46% yearly.
EPS Next Y9.37%
EPS Next 2Y9.04%
EPS Next 3Y9.43%
EPS Next 5Y10.71%
Revenue Next Year4.12%
Revenue Next 2Y4.35%
Revenue Next 3Y4.89%
Revenue Next 5Y13.46%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ALGN Yearly Revenue VS EstimatesALGN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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6

4. ALGN Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.82 indicates a correct valuation of ALGN.
  • Based on the Price/Earnings ratio, ALGN is valued cheaply inside the industry as 83.60% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 24.88. ALGN is valued slightly cheaper when compared to this.
  • ALGN is valuated correctly with a Price/Forward Earnings ratio of 14.46.
  • Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 85.19% of the companies in the same industry.
  • ALGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.82
Fwd PE 14.46
ALGN Price Earnings VS Forward Price EarningsALGN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 83.60% of the companies listed in the same industry.
  • ALGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALGN is cheaper than 80.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.16
EV/EBITDA 13.31
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

  • The 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)1.69
PEG (5Y)1.06
EPS Next 2Y9.04%
EPS Next 3Y9.43%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ALGN Dividend Analysis

5.1 Amount

  • No dividends for ALGN!.
Industry RankSector Rank
Dividend Yield 0%

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ALGN Fundamentals: All Metrics, Ratios and Statistics

ALIGN TECHNOLOGY INC

NASDAQ:ALGN (3/27/2026, 8:00:25 PM)

After market: 166.38 0 (0%)

166.38

-10.95 (-6.17%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-04
Earnings (Next)04-29
Inst Owners95.18%
Inst Owner Change-3.03%
Ins Owners0.73%
Ins Owner Change4.63%
Market Cap11.86B
Revenue(TTM)4.03B
Net Income(TTM)410.35M
Analysts78.33
Price Target205.76 (23.67%)
Short Float %3.57%
Short Ratio1.93
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2
Avg EPS beat(2)7.54%
Min EPS beat(2)6.53%
Max EPS beat(2)8.54%
EPS beat(4)3
Avg EPS beat(4)3.83%
Min EPS beat(4)-4.95%
Max EPS beat(4)8.54%
EPS beat(8)5
Avg EPS beat(8)2.79%
EPS beat(12)8
Avg EPS beat(12)3.1%
EPS beat(16)9
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-0.02%
Revenue beat(8)1
Avg Revenue beat(8)-1.94%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)3
Avg Revenue beat(16)-2.28%
PT rev (1m)9.98%
PT rev (3m)11.56%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-6.91%
EPS NY rev (1m)2.7%
EPS NY rev (3m)3.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 15.82
Fwd PE 14.46
P/S 2.94
P/FCF 24.16
P/OCF 19.99
P/B 2.93
P/tB 3.42
EV/EBITDA 13.31
EPS(TTM)10.52
EY6.32%
EPS(NY)11.51
Fwd EY6.92%
FCF(TTM)6.89
FCFY4.14%
OCF(TTM)8.32
OCFY5%
SpS56.61
BVpS56.81
TBVpS48.59
PEG (NY)1.69
PEG (5Y)1.06
Graham Number115.96
Profitability
Industry RankSector Rank
ROA 6.58%
ROE 10.13%
ROCE 14.58%
ROIC 10.15%
ROICexc 13.61%
ROICexgc 16.63%
OM 15.58%
PM (TTM) 10.17%
GM 68.27%
FCFM 12.16%
ROA(3y)6.89%
ROA(5y)7.95%
ROE(3y)11.11%
ROE(5y)12.94%
ROIC(3y)10.91%
ROIC(5y)12.2%
ROICexc(3y)11.55%
ROICexc(5y)14.72%
ROICexgc(3y)13.41%
ROICexgc(5y)17.53%
ROCE(3y)15.67%
ROCE(5y)17.51%
ROICexgc growth 3Y-10.72%
ROICexgc growth 5Y-1.24%
ROICexc growth 3Y-10.02%
ROICexc growth 5Y0.7%
OM growth 3Y-3.82%
OM growth 5Y-0.1%
PM growth 3Y1.65%
PM growth 5Y-32.36%
GM growth 3Y-1.08%
GM growth 5Y-0.87%
F-Score7
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 43.15%
Cap/Sales 2.54%
Interest Coverage 250
Cash Conversion 68.48%
Profit Quality 119.6%
Current Ratio 1.36
Quick Ratio 1.24
Altman-Z 5.14
F-Score7
WACC10.7%
ROIC/WACC0.95
Cap/Depr(3y)82.55%
Cap/Depr(5y)169.73%
Cap/Sales(3y)3.34%
Cap/Sales(5y)5.6%
Profit Quality(3y)134.67%
Profit Quality(5y)116.09%
High Growth Momentum
Growth
EPS 1Y (TTM)12.63%
EPS 3Y13.37%
EPS 5Y14.96%
EPS Q2Q%34.84%
EPS Next Y9.37%
EPS Next 2Y9.04%
EPS Next 3Y9.43%
EPS Next 5Y10.71%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y2.61%
Revenue growth 5Y10.3%
Sales Q2Q%5.26%
Revenue Next Year4.12%
Revenue Next 2Y4.35%
Revenue Next 3Y4.89%
Revenue Next 5Y13.46%
EBIT growth 1Y-6.34%
EBIT growth 3Y-1.31%
EBIT growth 5Y10.18%
EBIT Next Year28.19%
EBIT Next 3Y13.04%
EBIT Next 5Y12.86%
FCF growth 1Y-21.18%
FCF growth 3Y21.03%
FCF growth 5Y-0.66%
OCF growth 1Y-19.64%
OCF growth 3Y1.42%
OCF growth 5Y-2.18%

ALIGN TECHNOLOGY INC / ALGN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ALIGN TECHNOLOGY INC (ALGN) stock?

ChartMill assigns a fundamental rating of 6 / 10 to ALGN.


Can you provide the valuation status for ALIGN TECHNOLOGY INC?

ChartMill assigns a valuation rating of 6 / 10 to ALIGN TECHNOLOGY INC (ALGN). This can be considered as Fairly Valued.


Can you provide the profitability details for ALIGN TECHNOLOGY INC?

ALIGN TECHNOLOGY INC (ALGN) has a profitability rating of 7 / 10.


What are the PE and PB ratios of ALIGN TECHNOLOGY INC (ALGN) stock?

The Price/Earnings (PE) ratio for ALIGN TECHNOLOGY INC (ALGN) is 15.82 and the Price/Book (PB) ratio is 2.93.