150.93 USD
+4.21 (+2.87%)
152 USD
+1.07 (+0.71%)
We assign a fundamental rating of 6 out of 10 to ALGN. ALGN was compared to 188 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.
ALGN had positive earnings in each of the past 5 years.
In the past 5 years ALGN always reported a positive cash flow from operatings.
1.2 Ratios
ALGN's Return On Assets of 6.07% is amongst the best of the industry. ALGN outperforms 82.98% of its industry peers.
Looking at the Return On Equity, with a value of 9.57%, ALGN belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
ALGN's Return On Invested Capital of 10.50% is amongst the best of the industry. ALGN outperforms 90.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALGN is above the industry average of 8.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 9.57% | ||
| 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
The Profit Margin of ALGN (9.51%) is better than 81.38% of its industry peers.
ALGN's Profit Margin has declined in the last couple of years.
The Operating Margin of ALGN (16.23%) is better than 86.17% of its industry peers.
In the last couple of years the Operating Margin of ALGN has declined.
ALGN's Gross Margin of 69.48% is fine compared to the rest of the industry. ALGN outperforms 76.60% of its industry peers.
ALGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.23% | ||
| PM (TTM) | 9.51% | ||
| GM | 69.48% |
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
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
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
ALGN has an Altman-Z score of 4.41. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.41, ALGN is doing good in the industry, outperforming 76.06% of the companies in the same industry.
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 | 4.41 |
ROIC/WACC1.2
WACC8.73%
2.3 Liquidity
ALGN has a Current Ratio of 1.29. 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 (1.29) than 80.32% of its industry peers.
A Quick Ratio of 1.17 indicates that ALGN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, ALGN is doing worse than 69.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
ALGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.76%.
ALGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
ALGN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
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)3.76%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%11.06%
Revenue 1Y (TTM)0.56%
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 10.83% yearly.
Based on estimates for the next years, ALGN will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y11.17%
EPS Next 2Y9.15%
EPS Next 3Y8.98%
EPS Next 5Y10.83%
Revenue Next Year0.42%
Revenue Next 2Y1.92%
Revenue Next 3Y2.82%
Revenue Next 5Y6.37%
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 stable.
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 15.61, which indicates a correct valuation of ALGN.
87.23% 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 valuation a bit cheaper than the S&P500 average which is at 26.15.
With a Price/Forward Earnings ratio of 13.56, ALGN is valued correctly.
ALGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALGN is cheaper than 89.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALGN to the average of the S&P500 Index (36.22), we can say ALGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued cheaper than 87.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.12 | ||
| EV/EBITDA | 12.57 |
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)1.4
PEG (5Y)1.31
EPS Next 2Y9.15%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
150.93
+4.21 (+2.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change4.38%
Ins Owners0.68%
Ins Owner Change1.24%
Market Cap10.83B
Revenue(TTM)3.98B
Net Income(TTM)378.59M
Analysts76.67
Price Target184.44 (22.2%)
Short Float %4.48%
Short Ratio2.18
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)0.79%
Min EPS beat(2)-4.95%
Max EPS beat(2)6.53%
EPS beat(4)2
Avg EPS beat(4)1.18%
Min EPS beat(4)-4.95%
Max EPS beat(4)6.53%
EPS beat(8)5
Avg EPS beat(8)2.84%
EPS beat(12)8
Avg EPS beat(12)3.11%
EPS beat(16)9
Avg EPS beat(16)-1.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.18%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)-1.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.6%
Revenue beat(16)3
Avg Revenue beat(16)-2.32%
PT rev (1m)2.68%
PT rev (3m)-5.44%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)1.24%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 13.56 | ||
| P/S | 2.72 | ||
| P/FCF | 19.12 | ||
| P/OCF | 16.51 | ||
| P/B | 2.74 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 12.57 |
EPS(TTM)9.67
EY6.41%
EPS(NY)11.13
Fwd EY7.37%
FCF(TTM)7.9
FCFY5.23%
OCF(TTM)9.14
OCFY6.06%
SpS55.51
BVpS55.16
TBVpS46.93
PEG (NY)1.4
PEG (5Y)1.31
Graham Number109.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 9.57% | ||
| ROCE | 15.14% | ||
| ROIC | 10.5% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 12.91% | ||
| OM | 16.23% | ||
| PM (TTM) | 9.51% | ||
| GM | 69.48% | ||
| FCFM | 14.22% |
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)12.85%
ROICexc(5y)14.58%
ROICexgc(3y)15.07%
ROICexgc(5y)17.6%
ROCE(3y)16.23%
ROCE(5y)16.81%
ROICexgc growth 3Y-21.83%
ROICexgc growth 5Y-25.54%
ROICexc growth 3Y-20.41%
ROICexc growth 5Y-25.98%
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%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.62% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.04% | ||
| Profit Quality | 149.64% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 4.41 |
F-Score7
WACC8.73%
ROIC/WACC1.2
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)3.76%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%11.06%
EPS Next Y11.17%
EPS Next 2Y9.15%
EPS Next 3Y8.98%
EPS Next 5Y10.83%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%1.82%
Revenue Next Year0.42%
Revenue Next 2Y1.92%
Revenue Next 3Y2.82%
Revenue Next 5Y6.37%
EBIT growth 1Y-4.86%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year19.51%
EBIT Next 3Y10.28%
EBIT Next 5Y11.14%
FCF growth 1Y-17.43%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y-25.75%
OCF growth 3Y-14.29%
OCF growth 5Y-0.24%
ALIGN TECHNOLOGY INC / ALGN FAQ
What is the ChartMill fundamental rating of ALIGN TECHNOLOGY INC (ALGN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALGN.
What is the valuation status of ALIGN TECHNOLOGY INC (ALGN) stock?
ChartMill assigns a valuation rating of 7 / 10 to ALIGN TECHNOLOGY INC (ALGN). This can be considered as Undervalued.
Can you provide the profitability details for ALIGN TECHNOLOGY INC?
ALIGN TECHNOLOGY INC (ALGN) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ALGN stock?
The Price/Earnings (PE) ratio for ALIGN TECHNOLOGY INC (ALGN) is 15.61 and the Price/Book (PB) ratio is 2.74.