For those who appreciate growth without the sticker shock, NASDAQ:ALGN is worth considering.

Take a closer look at ALIGN TECHNOLOGY INC (NASDAQ:ALGN), an affordable growth stock uncovered by our stock screener. NASDAQ:ALGN boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Analysis for NASDAQ:ALGN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:ALGN has achieved a 7 out of 10:

• The Earnings Per Share has grown by an impressive 29.09% 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 11.86% on average per year.
• Measured over the past years, ALGN shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
• ALGN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.50% yearly.
• ALGN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.49% yearly.
• 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.

Valuation Insights: NASDAQ:ALGN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ALGN has achieved a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of ALGN indicates a somewhat cheap valuation: ALGN is cheaper than 79.68% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 80.75% of the companies listed in the same industry.
• Based on the Enterprise Value to EBITDA ratio, ALGN is valued a bit cheaper than 77.01% of the companies 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 82.89% of the companies listed in the same industry.
• The excellent profitability rating of ALGN may justify a higher PE ratio.
• A more expensive valuation may be justified as ALGN's earnings are expected to grow with 14.81% in the coming years.

What does the Health looks like for NASDAQ:ALGN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:ALGN was assigned a score of 8 for health:

• An Altman-Z score of 6.16 indicates that ALGN is not in any danger for bankruptcy at the moment.
• ALGN has a Altman-Z score of 6.16. This is amongst the best in the industry. ALGN outperforms 82.35% 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.
• The current and quick ratio evaluation for ALGN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NASDAQ:ALGN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:ALGN has earned a 8 out of 10:

• The Return On Assets of ALGN (7.51%) is better than 88.24% of its industry peers.
• The Return On Equity of ALGN (12.29%) is better than 88.24% of its industry peers.
• The Return On Invested Capital of ALGN (10.63%) is better than 91.98% of its industry peers.
• ALGN had an Average Return On Invested Capital over the past 3 years of 12.31%. This is above the industry average of 8.53%.
• With an excellent Profit Margin value of 11.80%, ALGN belongs to the best of the industry, outperforming 88.77% of the companies in the same industry.
• ALGN has a better Operating Margin (17.29%) than 90.91% of its industry peers.
• ALGN has a Gross Margin of 70.06%. This is amongst the best in the industry. ALGN outperforms 81.28% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of ALGN for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.