ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock - Currency: USD
Overall ALGN gets a fundamental rating of 7 out of 10. We evaluated ALGN against 187 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ALGN a very profitable company, without any liquidiy or solvency issues. ALGN has a decent growth rate and is not valued too expensively. This makes ALGN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ALGN was profitable.
ALGN had a positive operating cash flow in the past year.
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
ALGN has a better Return On Assets (6.71%) than 88.77% of its industry peers.
The Return On Equity of ALGN (10.79%) is better than 86.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.00%, ALGN belongs to the top of the industry, outperforming 93.05% of the companies in the same industry.
ALGN had an Average Return On Invested Capital over the past 3 years of 11.25%. This is above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 10.79% | ||
| ROIC | 11% |
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
With an excellent Profit Margin value of 10.29%, ALGN belongs to the best of the industry, outperforming 84.49% of the companies in the same industry.
In the last couple of years the Profit Margin of ALGN has declined.
Looking at the Operating Margin, with a value of 16.40%, ALGN belongs to the top of the industry, outperforming 86.63% of the companies in the same industry.
In the last couple of years the Operating Margin of ALGN has declined.
Looking at the Gross Margin, with a value of 69.87%, ALGN belongs to the top of the industry, outperforming 80.21% 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 | 16.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 69.87% |
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.
ALGN has less shares outstanding than it did 1 year ago.
ALGN has less shares outstanding than it did 5 years ago.
ALGN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ALGN has an Altman-Z score of 5.34. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.34, ALGN is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
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 | 5.34 |
ROIC/WACC1.22
WACC8.99%
2.3 Liquidity
ALGN has a Current Ratio of 1.21. 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 (1.21) than 82.35% of its industry peers.
A Quick Ratio of 1.08 indicates that ALGN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, ALGN is not doing good in the industry: 75.40% of the companies in the same industry are doing better.
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 | 1.21 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.60% 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 1.64% in the last year.
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)1.64%
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 12.92% yearly.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
EPS Next Y12.44%
EPS Next 2Y10.82%
EPS Next 3Y10.74%
EPS Next 5Y12.92%
Revenue Next Year3.6%
Revenue Next 2Y4.59%
Revenue Next 3Y5.04%
Revenue Next 5Y7.34%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.10, which indicates a rather expensive current valuation of ALGN.
Compared to the rest of the industry, the Price/Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 80.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALGN to the average of the S&P500 Index (27.45), we can say ALGN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.16, ALGN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 80.21% of the companies in the same industry.
ALGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued a bit cheaper than the industry average as 77.54% 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 86.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.62 | ||
| EV/EBITDA | 16.65 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)1.77
EPS Next 2Y10.82%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
196.82
-0.16 (-0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.18%
Inst Owner Change1.77%
Ins Owners0.67%
Ins Owner Change0.65%
Market Cap14.27B
Analysts78.33
Price Target230.92 (17.33%)
Short Float %4.46%
Short Ratio3.05
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)1.58%
Min EPS beat(2)-2.04%
Max EPS beat(2)5.2%
EPS beat(4)2
Avg EPS beat(4)1.37%
Min EPS beat(4)-2.04%
Max EPS beat(4)5.2%
EPS beat(8)5
Avg EPS beat(8)2.64%
EPS beat(12)7
Avg EPS beat(12)-1.25%
EPS beat(16)10
Avg EPS beat(16)0.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)-1.56%
Revenue beat(8)2
Avg Revenue beat(8)-1.78%
Revenue beat(12)3
Avg Revenue beat(12)-2.06%
Revenue beat(16)5
Avg Revenue beat(16)-1.52%
PT rev (1m)-1.15%
PT rev (3m)-9.56%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)0.08%
EPS NY rev (3m)5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.16 | ||
| P/S | 3.58 | ||
| P/FCF | 22.62 | ||
| P/OCF | 18.72 | ||
| P/B | 3.76 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)9.33
EY4.74%
EPS(NY)11.47
Fwd EY5.83%
FCF(TTM)8.7
FCFY4.42%
OCF(TTM)10.52
OCFY5.34%
SpS54.92
BVpS52.35
TBVpS44.62
PEG (NY)1.7
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 10.79% | ||
| ROCE | 15.88% | ||
| ROIC | 11% | ||
| ROICexc | 13.97% | ||
| ROICexgc | 16.89% | ||
| OM | 16.4% | ||
| PM (TTM) | 10.29% | ||
| GM | 69.87% | ||
| FCFM | 15.84% |
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-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.95% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.79% | ||
| Profit Quality | 154% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 5.34 |
F-Score6
WACC8.99%
ROIC/WACC1.22
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 Y12.44%
EPS Next 2Y10.82%
EPS Next 3Y10.74%
EPS Next 5Y12.92%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.82%
Revenue Next Year3.6%
Revenue Next 2Y4.59%
Revenue Next 3Y5.04%
Revenue Next 5Y7.34%
EBIT growth 1Y-3.59%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year22.41%
EBIT Next 3Y13.34%
EBIT Next 5Y13.42%
FCF growth 1Y34.37%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y3.27%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%