ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
USA - NASDAQ:ALGN - US0162551016 - Common Stock
142.56 USD
+9.75 (+7.34%)
142.56 USD
0 (0%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. ALGN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ALGN very considerable for value 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.
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's Return On Assets of 6.08% is amongst the best of the industry. ALGN outperforms 82.98% of its industry peers.
ALGN has a better Return On Equity (9.58%) than 83.51% of its industry peers.
ALGN has a better Return On Invested Capital (9.82%) than 89.36% of its industry peers.
ALGN had an Average Return On Invested Capital over the past 3 years of 11.24%. This is above the industry average of 8.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 9.58% | ||
| ROIC | 9.82% |
ROA(3y)6.72%
ROA(5y)13.99%
ROE(3y)11.08%
ROE(5y)21.89%
ROIC(3y)11.24%
ROIC(5y)11.64%
1.3 Margins
With an excellent Profit Margin value of 9.52%, ALGN belongs to the best of the industry, outperforming 81.38% of the companies in the same industry.
ALGN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.20%, ALGN belongs to the top of the industry, outperforming 84.57% 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 68.46%, ALGN is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
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 | 15.2% | ||
| PM (TTM) | 9.52% | ||
| GM | 68.46% |
OM growth 3Y-12.05%
OM growth 5Y-4.7%
PM growth 3Y-18.62%
PM growth 5Y-10.56%
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.
ALGN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALGN has been reduced compared to 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 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 | N/A |
ROIC/WACC1.12
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ALGN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, ALGN is doing worse than 80.85% of the companies in the same industry.
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 69.68% 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.
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%.
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)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
Based on estimates for the next years, ALGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.83% on average per year.
ALGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.37% yearly.
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 14.74, which indicates a correct valuation of ALGN.
Based on the Price/Earnings ratio, ALGN is valued cheaper than 86.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALGN to the average of the S&P500 Index (25.45), we can say ALGN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.81, ALGN is valued correctly.
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 34.46, ALGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued cheaper than 86.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaply inside the industry as 91.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.33 | ||
| EV/EBITDA | 11.49 |
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)1.32
PEG (5Y)1.24
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 |
142.56
+9.75 (+7.34%)
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 Change4.45%
Ins Owners0.68%
Ins Owner Change5.07%
Market Cap10.33B
Revenue(TTM)3.98B
Net Income(TTM)379.00M
Analysts76.67
Price Target179.63 (26%)
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)-5.66%
PT rev (3m)-5.72%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)1%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.81 | ||
| P/S | 2.59 | ||
| P/FCF | 16.33 | ||
| P/OCF | 15.75 | ||
| P/B | 2.61 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)9.67
EY6.78%
EPS(NY)11.13
Fwd EY7.8%
FCF(TTM)8.73
FCFY6.13%
OCF(TTM)9.05
OCFY6.35%
SpS54.94
BVpS54.6
TBVpS46.45
PEG (NY)1.32
PEG (5Y)1.24
Graham Number108.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 9.58% | ||
| ROCE | 14.18% | ||
| ROIC | 9.82% | ||
| ROICexc | 12.85% | ||
| ROICexgc | 15.69% | ||
| OM | 15.2% | ||
| PM (TTM) | 9.52% | ||
| GM | 68.46% | ||
| FCFM | 15.89% |
ROA(3y)6.72%
ROA(5y)13.99%
ROE(3y)11.08%
ROE(5y)21.89%
ROIC(3y)11.24%
ROIC(5y)11.64%
ROICexc(3y)14.93%
ROICexc(5y)15.82%
ROICexgc(3y)17.95%
ROICexgc(5y)19.33%
ROCE(3y)16.23%
ROCE(5y)16.81%
ROICexgc growth 3Y-14.88%
ROICexgc growth 5Y-21.63%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y-22.72%
OM growth 3Y-12.05%
OM growth 5Y-4.7%
PM growth 3Y-18.62%
PM growth 5Y-10.56%
GM growth 3Y-1.95%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.45% | ||
| Profit Quality | 167.02% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score6
WACC8.74%
ROIC/WACC1.12
Cap/Depr(3y)145.8%
Cap/Depr(5y)194.41%
Cap/Sales(3y)5.11%
Cap/Sales(5y)6.35%
Profit Quality(3y)120.31%
Profit Quality(5y)97.88%
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-10.9%
EBIT growth 3Y-11.71%
EBIT growth 5Y5.49%
EBIT Next Year19.51%
EBIT Next 3Y10.28%
EBIT Next 5Y11.14%
FCF growth 1Y-7.74%
FCF growth 3Y-6.92%
FCF growth 5Y0.8%
OCF growth 1Y-25.76%
OCF growth 3Y-14.3%
OCF growth 5Y-0.25%
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 14.74 and the Price/Book (PB) ratio is 2.61.