ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
USA - NASDAQ:ALGN - US0162551016 - Common Stock
131.06 USD
-0.5 (-0.38%)
131.09 USD
+0.03 (+0.02%)
We assign a fundamental rating of 6 out of 10 to ALGN. ALGN was compared to 191 industry peers in the Health Care Equipment & Supplies industry. ALGN gets an excellent profitability rating and is at the same time showing great financial health properties. ALGN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ALGN very considerable 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.
In the past 5 years ALGN has always been profitable.
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.
ALGN has a Return On Equity of 11.18%. This is amongst the best in the industry. ALGN outperforms 87.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.50%, ALGN belongs to the top of the industry, outperforming 91.62% 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 8.46%.
| 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 better Profit Margin (11.04%) than 84.29% of its industry peers.
In the last couple of years the Profit Margin of ALGN has declined.
Looking at the Operating Margin, with a value of 16.14%, ALGN belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.84%, ALGN is in the better half of the industry, outperforming 79.58% 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 | 16.14% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALGN is still creating some value.
Compared to 1 year ago, ALGN has less shares outstanding
ALGN has less shares outstanding than it did 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
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.
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 | 4.09 |
ROIC/WACC1.21
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.23 indicates that ALGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.23, ALGN is not doing good in the industry: 80.63% 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 72.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
ALGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.29%.
ALGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
The Revenue has been growing slightly by 0.56% in the past year.
ALGN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.69% yearly.
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
ALGN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.97% yearly.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 6.61% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 13.93, ALGN is valued correctly.
87.43% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
ALGN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.87, which indicates a very decent 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 91.10% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. ALGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.87 |
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 92.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
ALGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)1.38
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 |
131.06
-0.5 (-0.38%)
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 Cap9.50B
Analysts78.33
Price Target190.53 (45.38%)
Short Float %3.41%
Short Ratio1.45
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)-2.11%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.77%
Revenue NY rev (1m)-3.55%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.87 | ||
| P/S | 2.4 | ||
| P/FCF | 15.04 | ||
| P/OCF | 13 | ||
| P/B | 2.43 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)9.41
EY7.18%
EPS(NY)11.04
Fwd EY8.43%
FCF(TTM)8.71
FCFY6.65%
OCF(TTM)10.09
OCFY7.7%
SpS54.69
BVpS53.98
TBVpS45.77
PEG (NY)1.38
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
WACC8.7%
ROIC/WACC1.21
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%