ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
USA - NASDAQ:ALGN - US0162551016 - Common Stock
131.39 USD
-1.18 (-0.89%)
131.75 USD
+0.36 (+0.27%)
Overall ALGN gets a fundamental rating of 6 out of 10. We evaluated ALGN against 191 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ALGN could be worth investigating further for value and 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.
ALGN had positive earnings in each of the past 5 years.
In the past 5 years ALGN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALGN (7.04%) is better than 87.96% of its industry peers.
With an excellent Return On Equity value of 11.18%, ALGN belongs to the best of the industry, outperforming 87.43% of the companies in the same industry.
ALGN's Return On Invested Capital of 10.50% is amongst the best of the industry. ALGN outperforms 91.62% 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
ALGN has a Profit Margin of 11.04%. This is amongst the best in the industry. ALGN outperforms 84.29% of its industry peers.
In the last couple of years the Profit Margin of ALGN has declined.
ALGN has a Operating Margin of 16.14%. This is amongst the best in the industry. ALGN outperforms 86.91% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
ALGN has a Gross Margin of 69.84%. This is in the better half of the industry: ALGN outperforms 79.58% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALGN is creating some value.
The number of shares outstanding for ALGN has been reduced compared to 1 year ago.
Compared to 5 years ago, ALGN has less shares outstanding
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 4.09 indicates that ALGN is not in any danger for bankruptcy at the moment.
ALGN has a Altman-Z score of 4.09. This is in the better half of the industry: ALGN outperforms 74.87% of its industry peers.
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 | 4.09 |
ROIC/WACC1.2
WACC8.78%
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 worse Current ratio (1.23) than 80.63% of its industry peers.
A Quick Ratio of 1.10 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN's Quick ratio of 1.10 is on the low side compared to the rest of the industry. ALGN is outperformed by 72.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.29% over the past year.
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.
The Revenue has been growing by 10.69% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.61% on average over the next years.
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
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
ALGN is valuated correctly with a Price/Earnings ratio of 13.96.
87.43% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALGN to the average of the S&P500 Index (27.38), we can say ALGN is valued slightly cheaper.
ALGN is valuated reasonably with a Price/Forward Earnings ratio of 11.90.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaply inside the industry as 91.62% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. ALGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
ALGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALGN is cheaper than 88.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaper than 91.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 10.84 |
4.3 Compensation for Growth
ALGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.17
EPS Next 2Y8.74%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
131.39
-1.18 (-0.89%)
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 Cap9.52B
Analysts78.33
Price Target190.53 (45.01%)
Short Float %3.22%
Short Ratio1.29
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)-11.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.9 | ||
| P/S | 2.4 | ||
| P/FCF | 15.08 | ||
| P/OCF | 13.03 | ||
| P/B | 2.43 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 10.84 |
EPS(TTM)9.41
EY7.16%
EPS(NY)11.04
Fwd EY8.41%
FCF(TTM)8.71
FCFY6.63%
OCF(TTM)10.09
OCFY7.68%
SpS54.69
BVpS53.98
TBVpS45.77
PEG (NY)1.39
PEG (5Y)1.17
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 | 4.09 |
F-Score7
WACC8.78%
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%