147.735 USD
+4.11 (+2.86%)
Taking everything into account, ALGN scores 6 out of 10 in our fundamental rating. ALGN was compared to 188 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ALGN could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ALGN was profitable.
In the past year ALGN had a positive cash flow from operations.
ALGN had positive earnings in each of the past 5 years.
Each year in the past 5 years ALGN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.07%, ALGN belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
ALGN has a Return On Equity of 9.57%. This is amongst the best in the industry. ALGN outperforms 84.04% of its industry peers.
The Return On Invested Capital of ALGN (10.50%) is better than 90.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALGN is above the industry average of 8.71%.
| 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
ALGN has a Profit Margin of 9.51%. This is amongst the best in the industry. ALGN outperforms 81.38% of its industry peers.
ALGN's Profit Margin has declined in the last couple of years.
ALGN has a Operating Margin of 16.23%. This is amongst the best in the industry. ALGN outperforms 86.17% of its industry peers.
In the last couple of years the Operating Margin of ALGN has declined.
The Gross Margin of ALGN (69.48%) is better than 76.60% of its industry peers.
In the last couple of years the Gross Margin of ALGN has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALGN is creating some value.
ALGN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALGN has less shares outstanding
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 4.38 indicates that ALGN is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALGN (4.38) is better than 75.00% 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 | 4.38 |
ROIC/WACC1.21
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN has a Current ratio of 1.29. This is amonst the worse of the industry: ALGN underperforms 80.85% of its industry peers.
ALGN has a Quick Ratio of 1.17. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ALGN (1.17) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.76% 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.
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.
The Revenue is expected to grow by 6.37% on average over the next years.
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
With a Price/Earnings ratio of 15.28, ALGN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 86.70% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.65. ALGN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.28, which indicates a correct valuation of ALGN.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 89.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, ALGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
87.23% of the companies in the same industry are more expensive than ALGN, based on the Enterprise Value to EBITDA ratio.
ALGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALGN is cheaper than 89.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.9 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)1.28
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 |
NASDAQ:ALGN (11/25/2025, 3:58:02 PM)
147.735
+4.11 (+2.86%)
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 Change4.6%
Ins Owners0.68%
Ins Owner Change1.24%
Market Cap10.71B
Revenue(TTM)3.98B
Net Income(TTM)378.59M
Analysts76.67
Price Target184.44 (24.85%)
Short Float %3.82%
Short Ratio2.05
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)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)-3.13%
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 | 15.28 | ||
| Fwd PE | 13.28 | ||
| P/S | 2.69 | ||
| P/FCF | 18.9 | ||
| P/OCF | 16.32 | ||
| P/B | 2.71 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)9.67
EY6.55%
EPS(NY)11.13
Fwd EY7.53%
FCF(TTM)7.82
FCFY5.29%
OCF(TTM)9.05
OCFY6.13%
SpS54.94
BVpS54.59
TBVpS46.45
PEG (NY)1.37
PEG (5Y)1.28
Graham Number108.99
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 | 4.38 |
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)3.76%
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 15.28 and the Price/Book (PB) ratio is 2.71.