ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
NASDAQ:ALGN - Nasdaq - US0162551016 - Common Stock
Overall ALGN gets a fundamental rating of 7 out of 10. We evaluated ALGN against 191 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ALGN a very profitable company, without any liquidiy or solvency issues. ALGN has a decent growth rate and is not valued too expensively. These ratings would make ALGN suitable 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.
Each year in the past 5 years ALGN has been profitable.
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 6.94%, ALGN belongs to the top of the industry, outperforming 87.89% of the companies in the same industry.
ALGN has a Return On Equity of 11.19%. This is amongst the best in the industry. ALGN outperforms 86.32% of its industry peers.
The Return On Invested Capital of ALGN (10.25%) is better than 91.05% of its industry peers.
ALGN had an Average Return On Invested Capital over the past 3 years of 12.31%. This is above the industry average of 8.08%.
| 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
With an excellent Profit Margin value of 11.15%, ALGN belongs to the best of the industry, outperforming 86.32% 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 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of ALGN has declined.
ALGN has a better Gross Margin (69.98%) than 81.58% 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
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.
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 an Altman-Z score of 5.79. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.79, ALGN is in the better half of the industry, outperforming 80.00% 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 | 5.79 |
ROIC/WACC1.11
WACC9.25%
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's Current ratio of 1.26 is on the low side compared to the rest of the industry. ALGN is outperformed by 82.11% 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.
ALGN's Quick ratio of 1.14 is on the low side compared to the rest of the industry. ALGN is outperformed by 68.95% of its industry peers.
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.
The Earnings Per Share has been growing by 11.86% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.03% in the past year.
Measured over the past years, ALGN shows a quite strong growth in Revenue. The Revenue has been growing by 14.45% on average per year.
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
The Earnings Per Share is expected to grow by 13.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.
EPS Next Y10.81%
EPS Next 2Y10.42%
EPS Next 3Y11.91%
EPS Next 5Y13.88%
Revenue Next Year4.37%
Revenue Next 2Y5.29%
Revenue Next 3Y6.24%
Revenue Next 5Y9.01%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.46 indicates a rather expensive valuation of ALGN.
84.21% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ALGN is valued at the same level.
The Price/Forward Earnings ratio is 21.75, which indicates a rather expensive current valuation of ALGN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 81.58% of the companies listed in the same industry.
ALGN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGN indicates a rather cheap valuation: ALGN is cheaper than 80.53% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALGN indicates a somewhat cheap valuation: ALGN is cheaper than 77.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.63 | ||
| EV/EBITDA | 19.14 |
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.
The excellent profitability rating of ALGN may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)2.06
EPS Next 2Y10.42%
EPS Next 3Y11.91%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALIGN TECHNOLOGY INC
NASDAQ:ALGN (1/21/2025, 8:00:00 PM)
After market: 228 0 (0%)228
+3.77 (+1.68%)
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 Change0.4%
Ins Owners0.63%
Ins Owner Change0.04%
Market Cap17.02B
Analysts74.78
Price Target266.86 (17.04%)
Short Float %3.88%
Short Ratio3.73
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)1.27%
PT rev (3m)-8.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 21.75 | ||
| P/S | 4.3 | ||
| P/FCF | 45.63 | ||
| P/OCF | 34.11 | ||
| P/B | 4.32 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 19.14 |
EPS(TTM)9.32
EY4.09%
EPS(NY)10.49
Fwd EY4.6%
FCF(TTM)5
FCFY2.19%
OCF(TTM)6.68
OCFY2.93%
SpS53.05
BVpS52.84
TBVpS44.97
PEG (NY)2.26
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 11.19% | ||
| ROCE | 15.79% | ||
| ROIC | 10.25% | ||
| ROICexc | 13.52% | ||
| ROICexgc | 16.49% | ||
| OM | 17.16% | ||
| PM (TTM) | 11.15% | ||
| GM | 69.98% | ||
| FCFM | 9.42% |
ROA(3y)8.8%
ROA(5y)16.17%
ROE(3y)14.54%
ROE(5y)26.28%
ROIC(3y)12.31%
ROIC(5y)13.18%
ROICexc(3y)16.76%
ROICexc(5y)22.13%
ROICexgc(3y)20.31%
ROICexgc(5y)26.14%
ROCE(3y)18.97%
ROCE(5y)20.32%
ROICexcg growth 3Y9.5%
ROICexcg growth 5Y-21.37%
ROICexc growth 3Y12.31%
ROICexc growth 5Y-21.99%
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%
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 | 5.79 |
F-Score8
WACC9.25%
ROIC/WACC1.11
Cap/Depr(3y)241.94%
Cap/Depr(5y)216.2%
Cap/Sales(3y)7.52%
Cap/Sales(5y)7.01%
Profit Quality(3y)104.37%
Profit Quality(5y)95.32%
High Growth Momentum
Growth
EPS 1Y (TTM)17.83%
EPS 3Y17.96%
EPS 5Y11.86%
EPS Q2Q%9.81%
EPS Next Y10.81%
EPS Next 2Y10.42%
EPS Next 3Y11.91%
EPS Next 5Y13.88%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y16.04%
Revenue growth 5Y14.45%
Sales Q2Q%1.84%
Revenue Next Year4.37%
Revenue Next 2Y5.29%
Revenue Next 3Y6.24%
Revenue Next 5Y9.01%
EBIT growth 1Y14.03%
EBIT growth 3Y19.25%
EBIT growth 5Y7.07%
EBIT Next Year18.94%
EBIT Next 3Y14.79%
EBIT Next 5Y15.12%
FCF growth 1Y6.88%
FCF growth 3Y6.23%
FCF growth 5Y12.91%
OCF growth 1Y-28.38%
OCF growth 3Y5.87%
OCF growth 5Y7.21%