ALIGN TECHNOLOGY INC (ALGN)
US0162551016 - Common Stock
Taking everything into account, ALGN scores 7 out of 10 in our fundamental rating. ALGN was compared to 188 industry peers in the Health Care Equipment & Supplies industry. ALGN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ALGN has a correct valuation and a medium growth rate. With these ratings, ALGN could be worth investigating further 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.
ALGN had positive earnings in each of the past 5 years.
ALGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALGN's Return On Assets of 6.94% is amongst the best of the industry. ALGN outperforms 87.70% of its industry peers.
ALGN has a Return On Equity of 11.19%. This is amongst the best in the industry. ALGN outperforms 86.10% of its industry peers.
ALGN's Return On Invested Capital of 10.25% is amongst the best of the industry. ALGN outperforms 91.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALGN is above the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 11.19% | ||
| ROIC | 10.25% |
ROA(3y)8.8%
ROA(5y)16.17%
ROE(3y)14.54%
ROE(5y)26.28%
ROIC(3y)12.31%
ROIC(5y)13.18%
1.3 Margins
ALGN's Profit Margin of 11.15% is amongst the best of the industry. ALGN outperforms 86.10% of its industry peers.
In the last couple of years the Profit Margin of ALGN has declined.
ALGN has a better Operating Margin (17.16%) than 89.84% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
ALGN has a Gross Margin of 69.98%. This is amongst the best in the industry. ALGN outperforms 81.82% 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 3Y2.77%
OM growth 5Y-6.45%
PM growth 3Y-45.67%
PM growth 5Y-10.75%
GM growth 3Y-0.59%
GM growth 5Y-0.98%
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.
The number of shares outstanding for ALGN has been reduced compared to 1 year ago.
Compared to 5 years ago, ALGN has less shares outstanding
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 5.89. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
ALGN has a better Altman-Z score (5.89) than 81.28% 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 | 5.89 |
ROIC/WACC1.13
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ALGN should not have too much problems paying its short term obligations.
ALGN has a worse Current ratio (1.26) than 85.03% of its industry peers.
ALGN has a Quick Ratio of 1.14. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.14, ALGN is doing worse than 73.26% of the companies in the same industry.
ALGN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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 17.83% 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 11.86% on average per year.
The Revenue has been growing slightly by 4.03% in the past year.
The Revenue has been growing by 14.45% on average over the past years. This is quite good.
EPS 1Y (TTM)17.83%
EPS 3Y17.96%
EPS 5Y11.86%
EPS Q2Q%9.81%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y16.04%
Revenue growth 5Y14.45%
Sales Q2Q%1.84%
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 15.50% yearly.
Based on estimates for the next years, ALGN will show a quite strong growth in Revenue. The Revenue will grow by 10.49% on average per year.
EPS Next Y10.71%
EPS Next 2Y10.33%
EPS Next 3Y11.79%
EPS Next 5Y15.5%
Revenue Next Year4.37%
Revenue Next 2Y5.24%
Revenue Next 3Y6.2%
Revenue Next 5Y10.49%
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 accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ALGN is valuated rather expensively with a Price/Earnings ratio of 24.67.
Compared to the rest of the industry, the Price/Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 83.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALGN to the average of the S&P500 Index (28.65), we can say ALGN is valued inline with the index average.
A Price/Forward Earnings ratio of 21.96 indicates a rather expensive valuation of ALGN.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 82.89% of the companies in the same industry.
ALGN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.67 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued a bit cheaper than the industry average as 79.68% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALGN indicates a somewhat cheap valuation: ALGN is cheaper than 78.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.01 | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)2.08
EPS Next 2Y10.33%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
ALGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALIGN TECHNOLOGY INC
NASDAQ:ALGN (11/18/2024, 8:08:16 PM)
After market: 229.9 0 (0%)229.9
+6.21 (+2.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.67 | ||
| Fwd PE | 21.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.3
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 11.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.16% | ||
| PM (TTM) | 11.15% | ||
| GM | 69.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.83%
EPS 3Y17.96%
EPS 5Y
EPS Q2Q%
EPS Next Y10.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.03%
Revenue growth 3Y16.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y