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ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis

NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock - Currency: USD

191.06  +2.06 (+1.09%)

Fundamental Rating

6

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 is not valued too expensively and it also shows a decent growth rate. These ratings would make ALGN suitable for quality investing!


Dividend Valuation Growth Profitability Health

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7

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.
Each year in the past 5 years ALGN had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

With an excellent Return On Assets value of 6.78%, ALGN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.94%, ALGN belongs to the top of the industry, outperforming 86.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.15%, ALGN belongs to the best of the industry, outperforming 93.12% 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 7.82%.
Industry RankSector Rank
ROA 6.78%
ROE 10.94%
ROIC 11.15%
ROA(3y)6.72%
ROA(5y)13.99%
ROE(3y)11.08%
ROE(5y)21.89%
ROIC(3y)11.25%
ROIC(5y)11.65%
ALGN Yearly ROA, ROE, ROICALGN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

With an excellent Profit Margin value of 10.54%, ALGN belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
In the last couple of years the Profit Margin of ALGN has declined.
ALGN's Operating Margin of 16.80% is amongst the best of the industry. ALGN outperforms 88.36% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
ALGN's Gross Margin of 70.00% is fine compared to the rest of the industry. ALGN outperforms 79.37% of its industry peers.
In the last couple of years the Gross Margin of ALGN has remained more or less at the same level.
Industry RankSector Rank
OM 16.8%
PM (TTM) 10.54%
GM 70%
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%
ALGN Yearly Profit, Operating, Gross MarginsALGN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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7

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
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.
ALGN Yearly Shares OutstandingALGN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ALGN Yearly Total Debt VS Total AssetsALGN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

ALGN has an Altman-Z score of 5.16. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
ALGN has a Altman-Z score of 5.16. This is in the better half of the industry: ALGN outperforms 78.84% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.16
ROIC/WACC1.24
WACC9.01%
ALGN Yearly LT Debt VS Equity VS FCFALGN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

ALGN has a Current Ratio of 1.22. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.22, ALGN is not doing good in the industry: 82.01% of the companies in the same industry are doing better.
A Quick Ratio of 1.10 indicates that ALGN should not have too much problems paying its short term obligations.
The Quick ratio of ALGN (1.10) is worse than 74.07% of its industry peers.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.1
ALGN Yearly Current Assets VS Current LiabilitesALGN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

ALGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.60%.
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.
ALGN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.54%.
Measured over the past years, ALGN shows a quite strong growth in Revenue. The Revenue has been growing by 10.69% on average per year.
EPS 1Y (TTM)4.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%-0.47%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.82%

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 12.09% yearly.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y6.71%
EPS Next 2Y8.77%
EPS Next 3Y10.23%
EPS Next 5Y12.09%
Revenue Next Year3.63%
Revenue Next 2Y4.49%
Revenue Next 3Y5.12%
Revenue Next 5Y6.98%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ALGN Yearly Revenue VS EstimatesALGN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.48, the valuation of ALGN can be described as rather expensive.
80.95% 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 24.83. ALGN is around the same levels.
The Price/Forward Earnings ratio is 17.29, which indicates a rather expensive current valuation of ALGN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 80.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.94. ALGN is around the same levels.
Industry RankSector Rank
PE 20.48
Fwd PE 17.29
ALGN Price Earnings VS Forward Price EarningsALGN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ALGN is valued a bit cheaper than the industry average as 79.89% of the companies are valued more expensively.
ALGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALGN is cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.46
EV/EBITDA 15.66
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALGN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)1.72
EPS Next 2Y8.77%
EPS Next 3Y10.23%

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0

5. Dividend

5.1 Amount

ALGN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ALIGN TECHNOLOGY INC

NASDAQ:ALGN (5/13/2025, 1:05:30 PM)

191.06

+2.06 (+1.09%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners89.6%
Inst Owner Change-0.52%
Ins Owners0.63%
Ins Owner Change0.44%
Market Cap13.99B
Analysts75.83
Price Target233.62 (22.28%)
Short Float %4.67%
Short Ratio2.33
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-1.15%
Min EPS beat(2)-2.04%
Max EPS beat(2)-0.26%
EPS beat(4)2
Avg EPS beat(4)1.74%
Min EPS beat(4)-2.04%
Max EPS beat(4)6.7%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)6
Avg EPS beat(12)-2.19%
EPS beat(16)10
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-2.89%
Max Revenue beat(2)-1.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)0.36%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-2.33%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)-7.31%
PT rev (3m)-12.1%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-12.49%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-4.42%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-5.07%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)-2.13%
Valuation
Industry RankSector Rank
PE 20.48
Fwd PE 17.29
P/S 3.5
P/FCF 22.46
P/OCF 18.95
P/B 3.63
P/tB 4.23
EV/EBITDA 15.66
EPS(TTM)9.33
EY4.88%
EPS(NY)11.05
Fwd EY5.78%
FCF(TTM)8.51
FCFY4.45%
OCF(TTM)10.08
OCFY5.28%
SpS54.62
BVpS52.62
TBVpS45.16
PEG (NY)3.05
PEG (5Y)1.72
Profitability
Industry RankSector Rank
ROA 6.78%
ROE 10.94%
ROCE 16.08%
ROIC 11.15%
ROICexc 14.86%
ROICexgc 18%
OM 16.8%
PM (TTM) 10.54%
GM 70%
FCFM 15.57%
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 79.69%
Cap/Sales 2.89%
Interest Coverage 250
Cash Conversion 90.38%
Profit Quality 147.77%
Current Ratio 1.22
Quick Ratio 1.1
Altman-Z 5.16
F-Score7
WACC9.01%
ROIC/WACC1.24
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)4.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%-0.47%
EPS Next Y6.71%
EPS Next 2Y8.77%
EPS Next 3Y10.23%
EPS Next 5Y12.09%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.82%
Revenue Next Year3.63%
Revenue Next 2Y4.49%
Revenue Next 3Y5.12%
Revenue Next 5Y6.98%
EBIT growth 1Y2.32%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year18.93%
EBIT Next 3Y14.21%
EBIT Next 5Y12.62%
FCF growth 1Y2.4%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y-6.05%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%