147.35 USD
+0.12 (+0.08%)
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 outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALGN. This makes ALGN very considerable 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 better Return On Equity (9.57%) than 84.04% of its industry peers.
ALGN has a Return On Invested Capital of 10.50%. This is amongst the best in the industry. ALGN outperforms 90.43% of its industry peers.
ALGN had an Average Return On Invested Capital over the past 3 years of 11.25%. This 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
Looking at the Profit Margin, with a value of 9.51%, ALGN belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
In the last couple of years the Profit Margin of ALGN has declined.
ALGN's Operating Margin of 16.23% is amongst the best of the industry. ALGN outperforms 86.17% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
The Gross Margin of ALGN (69.48%) is better than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALGN is still creating some value.
Compared to 1 year ago, ALGN has less shares outstanding
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 4.45 indicates that ALGN is not in any danger for bankruptcy at the moment.
ALGN has a better Altman-Z score (4.45) 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 | 4.45 |
ROIC/WACC1.21
WACC8.64%
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.
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.
ALGN's Quick ratio of 1.17 is on the low side compared to the rest of the industry. ALGN is outperformed by 70.21% of its industry peers.
| 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.
Looking at the last year, ALGN shows a small growth in Revenue. The Revenue has grown by 0.56% in the last year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
ALGN is valuated correctly with a Price/Earnings ratio of 15.24.
ALGN's Price/Earnings ratio is rather cheap when compared to the industry. ALGN is cheaper than 86.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ALGN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.24, ALGN is valued correctly.
89.36% of the companies in the same industry are more expensive than ALGN, based on the Price/Forward Earnings ratio.
ALGN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 13.24 |
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.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaply inside the industry as 88.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.85 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
The 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)1.36
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 (11/28/2025, 9:44:30 AM)
147.35
+0.12 (+0.08%)
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 Cap10.68B
Revenue(TTM)3.98B
Net Income(TTM)378.59M
Analysts76.67
Price Target184.44 (25.17%)
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 | 15.24 | ||
| Fwd PE | 13.24 | ||
| P/S | 2.68 | ||
| P/FCF | 18.85 | ||
| P/OCF | 16.28 | ||
| P/B | 2.7 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 12.75 |
EPS(TTM)9.67
EY6.56%
EPS(NY)11.13
Fwd EY7.55%
FCF(TTM)7.82
FCFY5.3%
OCF(TTM)9.05
OCFY6.14%
SpS54.94
BVpS54.59
TBVpS46.45
PEG (NY)1.36
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 | 4.45 |
F-Score7
WACC8.64%
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 15.24 and the Price/Book (PB) ratio is 2.7.