ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
USA - NASDAQ:ALGN - US0162551016 - Common Stock
134.84 USD
+1.11 (+0.83%)
134.84 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALGN. ALGN was compared to 189 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ALGN suitable for value and 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.
ALGN had positive earnings in each of the past 5 years.
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 88.36% of the companies in the same industry.
ALGN has a better Return On Equity (11.18%) than 87.83% 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 90.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALGN is above the industry average of 9.12%.
| 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
The Profit Margin of ALGN (11.04%) is better than 85.19% of its industry peers.
In the last couple of years the Profit Margin of ALGN has declined.
ALGN's Operating Margin of 16.14% is amongst the best of the industry. ALGN outperforms 85.71% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.84%, ALGN is in the better half of the industry, outperforming 78.84% 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 | 16.14% | ||
| 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.
Compared to 1 year ago, ALGN has less shares outstanding
ALGN has less shares outstanding than it did 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
ALGN has an Altman-Z score of 4.15. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.15, ALGN is doing good in the industry, outperforming 75.66% of the companies in the same industry.
ALGN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.2
WACC8.75%
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 80.95% 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 73.02% 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 3.76%.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.56% in the past year.
The Revenue has been growing by 10.69% on average over the past years. This is quite good.
EPS 1Y (TTM)3.76%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%11.06%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%1.82%
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 10.83% on average per year.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y11.17%
EPS Next 2Y9.15%
EPS Next 3Y8.98%
EPS Next 5Y10.83%
Revenue Next Year0.42%
Revenue Next 2Y1.92%
Revenue Next 3Y2.82%
Revenue Next 5Y6.37%
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
With a Price/Earnings ratio of 13.94, ALGN is valued correctly.
86.77% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.83, ALGN is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.12 indicates a correct valuation of ALGN.
89.95% of the companies in the same industry are more expensive than ALGN, based on the Price/Forward Earnings ratio.
ALGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
87.83% of the companies in the same industry are more expensive than ALGN, based on the Enterprise Value to EBITDA ratio.
92.06% of the companies in the same industry are more expensive than ALGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.48 | ||
| EV/EBITDA | 11.16 |
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)1.17
EPS Next 2Y9.15%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
134.84
+1.11 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change0.05%
Ins Owners0.68%
Ins Owner Change2.79%
Market Cap9.77B
Revenue(TTM)3.98B
Net Income(TTM)437.61M
Analysts76.67
Price Target179.63 (33.22%)
Short Float %3.59%
Short Ratio1.96
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)-5.66%
PT rev (3m)-5.72%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)1%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.12 | ||
| P/S | 2.47 | ||
| P/FCF | 15.48 | ||
| P/OCF | 13.37 | ||
| P/B | 2.5 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)9.67
EY7.17%
EPS(NY)11.13
Fwd EY8.25%
FCF(TTM)8.71
FCFY6.46%
OCF(TTM)10.09
OCFY7.48%
SpS54.69
BVpS53.98
TBVpS45.77
PEG (NY)1.25
PEG (5Y)1.17
Graham Number108.37
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%
ROICexgc growth 3Y-14.88%
ROICexgc 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 | 4.15 |
F-Score7
WACC8.75%
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)3.76%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%11.06%
EPS Next Y11.17%
EPS Next 2Y9.15%
EPS Next 3Y8.98%
EPS Next 5Y10.83%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%1.82%
Revenue Next Year0.42%
Revenue Next 2Y1.92%
Revenue Next 3Y2.82%
Revenue Next 5Y6.37%
EBIT growth 1Y-6.39%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year19.51%
EBIT Next 3Y10.28%
EBIT Next 5Y11.14%
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%
ALIGN TECHNOLOGY INC / ALGN FAQ
What is the ChartMill fundamental rating of ALIGN TECHNOLOGY INC (ALGN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALGN.
What is the valuation status of ALIGN TECHNOLOGY INC (ALGN) stock?
ChartMill assigns a valuation rating of 7 / 10 to ALIGN TECHNOLOGY INC (ALGN). This can be considered as Undervalued.
Can you provide the profitability details for ALIGN TECHNOLOGY INC?
ALIGN TECHNOLOGY INC (ALGN) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ALGN stock?
The Price/Earnings (PE) ratio for ALIGN TECHNOLOGY INC (ALGN) is 13.94 and the Price/Book (PB) ratio is 2.5.