ALIGN TECHNOLOGY INC (ALGN)
US0162551016 - Common Stock
Overall ALGN gets a fundamental rating of 7 out of 10. We evaluated ALGN against 192 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make ALGN a good candidate for growth and quality investing.
1. Profitability
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.
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 7.51%, ALGN belongs to the top of the industry, outperforming 88.08% of the companies in the same industry.
With an excellent Return On Equity value of 12.29%, ALGN belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.63%, ALGN belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALGN is above the industry average of 8.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.51% | ||
| ROE | 12.29% | ||
| ROIC | 10.63% |
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
The Profit Margin of ALGN (11.80%) is better than 87.56% of its industry peers.
In the last couple of years the Profit Margin of ALGN has declined.
The Operating Margin of ALGN (17.29%) is better than 90.16% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
ALGN's Gross Margin of 70.06% is amongst the best of the industry. ALGN outperforms 80.83% of its industry peers.
ALGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 11.8% | ||
| GM | 70.06% |
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
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
The number of shares outstanding for ALGN has been reduced compared to 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 6.77. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
ALGN's Altman-Z score of 6.77 is amongst the best of the industry. ALGN outperforms 82.38% 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 | 6.77 |
ROIC/WACC1.11
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.23 indicates that ALGN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, ALGN is doing worse than 90.16% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN has a Quick ratio of 1.09. This is amonst the worse of the industry: ALGN underperforms 80.83% of its industry peers.
ALGN does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.23 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
ALGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.09%, which is quite impressive.
ALGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.86% yearly.
ALGN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.72%.
ALGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.45% yearly.
EPS 1Y (TTM)29.09%
EPS 3Y17.96%
EPS 5Y11.86%
EPS growth Q2Q17.58%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y16.04%
Revenue growth 5Y14.45%
Revenue growth Q2Q5.76%
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 15.50% on average per year.
Based on estimates for the next years, ALGN will show a quite strong growth in Revenue. The Revenue will grow by 10.49% on average per year.
EPS Next Y9.87%
EPS Next 2Y11.6%
EPS Next 3Y13.48%
EPS Next 5Y15.5%
Revenue Next Year5.39%
Revenue Next 2Y7.48%
Revenue Next 3Y8.52%
Revenue Next 5Y10.49%
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 accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.44, which means the current valuation is very expensive for ALGN.
77.72% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
ALGN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
Based on the Price/Forward Earnings ratio of 25.35, the valuation of ALGN can be described as expensive.
78.24% of the companies in the same industry are more expensive than ALGN, based on the Price/Forward Earnings ratio.
ALGN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 25.35 |
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 77.20% 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 81.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.56 | ||
| EV/EBITDA | 23.87 |
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)3.08
PEG (5Y)2.57
EPS Next 2Y11.6%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALIGN TECHNOLOGY INC
NASDAQ:ALGN (5/17/2024, 7:00:00 PM)
After market: 271.05 -0.45 (-0.17%)271.5
-2.06 (-0.75%)
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 Cap20.43B
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(4)
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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 | 30.44 | ||
| Fwd PE | 25.35 | ||
| 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)3.08
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.51% | ||
| ROE | 12.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.29% | ||
| PM (TTM) | 11.8% | ||
| GM | 70.06% | ||
| 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.09 | ||
| 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)29.09%
EPS 3Y17.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.72%
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