ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock - Currency: USD
Overall ALGN gets a fundamental rating of 6 out of 10. We evaluated ALGN against 190 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. This makes ALGN very considerable for 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.
In the past 5 years ALGN has always been profitable.
Of the past 5 years ALGN 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.94%, ALGN belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.
The Return On Equity of ALGN (11.19%) is better than 86.17% of its industry peers.
ALGN has a Return On Invested Capital of 10.95%. This is amongst the best in the industry. ALGN outperforms 92.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALGN is above the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 11.19% | ||
| ROIC | 10.95% |
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
Looking at the Profit Margin, with a value of 11.15%, ALGN belongs to the top of the industry, outperforming 86.17% 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 17.16%, ALGN belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
The Gross Margin of ALGN (69.98%) is better than 81.38% of its industry peers.
ALGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 11.15% | ||
| GM | 69.98% |
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
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
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
An Altman-Z score of 5.30 indicates that ALGN is not in any danger for bankruptcy at the moment.
ALGN has a better Altman-Z score (5.30) than 79.26% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.3 |
ROIC/WACC1.2
WACC9.14%
2.3 Liquidity
ALGN has a Current Ratio of 1.26. 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 (1.26) than 82.98% of its industry peers.
A Quick Ratio of 1.14 indicates that ALGN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, ALGN is not doing good in the industry: 70.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.60% 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 3.54% in the last 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)8.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%0.83%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%4.02%
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 15.24% on average per year.
ALGN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.55% yearly.
EPS Next Y9.6%
EPS Next 2Y10.33%
EPS Next 3Y12.64%
EPS Next 5Y15.24%
Revenue Next Year5.88%
Revenue Next 2Y6.9%
Revenue Next 3Y8.18%
Revenue Next 5Y11.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.39 indicates a rather expensive valuation of ALGN.
85.64% 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 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.60, ALGN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 83.51% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ALGN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
ALGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALGN is cheaper than 80.85% of the companies in the same industry.
78.72% of the companies in the same industry are more expensive than ALGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.11 | ||
| EV/EBITDA | 16.76 |
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 a very decent profitability rating, which may justify a higher PE ratio.
ALGN's earnings are expected to grow with 12.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)1.71
EPS Next 2Y10.33%
EPS Next 3Y12.64%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
190.43
-7.63 (-3.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.77%
Inst Owner Change0.78%
Ins Owners0.63%
Ins Owner Change-0.1%
Market Cap14.22B
Analysts76.52
Price Target265.77 (39.56%)
Short Float %3.24%
Short Ratio3.08
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)1.16%
Min EPS beat(2)-0.26%
Max EPS beat(2)2.59%
EPS beat(4)3
Avg EPS beat(4)4.5%
Min EPS beat(4)-0.26%
Max EPS beat(4)8.98%
EPS beat(8)6
Avg EPS beat(8)4.08%
EPS beat(12)7
Avg EPS beat(12)-1.84%
EPS beat(16)11
Avg EPS beat(16)2.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-2.89%
Max Revenue beat(2)-2.7%
Revenue beat(4)2
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)0.46%
Revenue beat(8)3
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-2.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.66%
PT rev (1m)-0.41%
PT rev (3m)-5.71%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)-2.37%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 18.6 | ||
| P/S | 3.59 | ||
| P/FCF | 38.11 | ||
| P/OCF | 28.49 | ||
| P/B | 3.6 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 16.76 |
EPS(TTM)9.34
EY4.9%
EPS(NY)10.24
Fwd EY5.38%
FCF(TTM)5
FCFY2.62%
OCF(TTM)6.68
OCFY3.51%
SpS53.05
BVpS52.84
TBVpS44.97
PEG (NY)2.12
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 11.19% | ||
| ROCE | 15.79% | ||
| ROIC | 10.95% | ||
| ROICexc | 14.44% | ||
| ROICexgc | 17.62% | ||
| OM | 17.16% | ||
| PM (TTM) | 11.15% | ||
| GM | 69.98% | ||
| FCFM | 9.42% |
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-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 89.64% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.85% | ||
| Profit Quality | 84.47% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 5.3 |
F-Score8
WACC9.14%
ROIC/WACC1.2
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.6%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%0.83%
EPS Next Y9.6%
EPS Next 2Y10.33%
EPS Next 3Y12.64%
EPS Next 5Y15.24%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%4.02%
Revenue Next Year5.88%
Revenue Next 2Y6.9%
Revenue Next 3Y8.18%
Revenue Next 5Y11.55%
EBIT growth 1Y14.03%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year22.18%
EBIT Next 3Y18.82%
EBIT Next 5Y17.19%
FCF growth 1Y-45.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-43.52%
OCF growth 3YN/A
OCF growth 5YN/A