ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
USA - NASDAQ:ALGN - US0162551016 - Common Stock
139.42 USD
-2.27 (-1.6%)
138.005 USD
-1.41 (-1.01%)
ALGN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 189 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ALGN suitable for value and quality 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.
In the past 5 years ALGN has always been profitable.
Each year in the past 5 years ALGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALGN (7.04%) is better than 87.30% of its industry peers.
With an excellent Return On Equity value of 11.18%, ALGN belongs to the best of the industry, outperforming 86.77% of the companies in the same industry.
ALGN has a better Return On Invested Capital (10.50%) than 90.48% 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 8.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.18% | ||
| 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
With an excellent Profit Margin value of 11.04%, ALGN belongs to the best of the industry, outperforming 84.66% of the companies in the same industry.
ALGN's Profit Margin has declined in the last couple of years.
ALGN has a Operating Margin of 16.14%. This is amongst the best in the industry. ALGN outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of ALGN has declined.
The Gross Margin of ALGN (69.84%) is better than 78.84% 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 | 16.14% | ||
| PM (TTM) | 11.04% | ||
| GM | 69.84% |
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
ALGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
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
ALGN has an Altman-Z score of 4.28. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALGN (4.28) is better than 76.19% of its industry peers.
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 | 4.28 |
ROIC/WACC1.2
WACC8.72%
2.3 Liquidity
ALGN has a Current Ratio of 1.23. 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 1.23, ALGN is doing worse than 81.48% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that ALGN should not have too much problems paying its short term obligations.
The Quick ratio of ALGN (1.10) is worse than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.1 |
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.
The Revenue has been growing by 10.69% on average over the past years. This is quite good.
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.
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 14.42 indicates a correct valuation of ALGN.
86.77% of the companies in the same industry are more expensive than ALGN, based on the Price/Earnings ratio.
ALGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 12.53 indicates a correct 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 90.48% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. ALGN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.53 |
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 86.77% of the companies listed in the same industry.
90.48% of the companies in the same industry are more expensive than ALGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 11.78 |
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)1.29
PEG (5Y)1.21
EPS Next 2Y9.15%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
139.42
-2.27 (-1.6%)
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 Change-0.64%
Ins Owners0.68%
Ins Owner Change2.79%
Market Cap10.11B
Revenue(TTM)3.98B
Net Income(TTM)437.61M
Analysts76.67
Price Target179.63 (28.84%)
Short Float %3.59%
Short Ratio1.96
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)0.12%
Min EPS beat(2)-4.95%
Max EPS beat(2)5.2%
EPS beat(4)1
Avg EPS beat(4)-0.52%
Min EPS beat(4)-4.95%
Max EPS beat(4)5.2%
EPS beat(8)4
Avg EPS beat(8)1.11%
EPS beat(12)7
Avg EPS beat(12)-0.67%
EPS beat(16)9
Avg EPS beat(16)-0.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.95%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-1.56%
Revenue beat(8)2
Avg Revenue beat(8)-2.47%
Revenue beat(12)3
Avg Revenue beat(12)-2.3%
Revenue beat(16)4
Avg Revenue beat(16)-2.2%
PT rev (1m)-5.66%
PT rev (3m)-5.72%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)1%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.53 | ||
| P/S | 2.55 | ||
| P/FCF | 16 | ||
| P/OCF | 13.82 | ||
| P/B | 2.58 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)9.67
EY6.94%
EPS(NY)11.13
Fwd EY7.98%
FCF(TTM)8.71
FCFY6.25%
OCF(TTM)10.09
OCFY7.23%
SpS54.69
BVpS53.98
TBVpS45.77
PEG (NY)1.29
PEG (5Y)1.21
Graham Number108.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.18% | ||
| ROCE | 15.15% | ||
| ROIC | 10.5% | ||
| ROICexc | 13.34% | ||
| ROICexgc | 16.25% | ||
| OM | 16.14% | ||
| PM (TTM) | 11.04% | ||
| GM | 69.84% | ||
| FCFM | 15.93% |
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)14.94%
ROICexc(5y)15.83%
ROICexgc(3y)17.96%
ROICexgc(5y)19.34%
ROCE(3y)16.23%
ROCE(5y)16.81%
ROICexgc growth 3Y-14.88%
ROICexgc growth 5Y-21.64%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y-22.73%
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 | 63.95% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.91% | ||
| Profit Quality | 144.32% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 4.28 |
F-Score7
WACC8.72%
ROIC/WACC1.2
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-6.39%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year19.51%
EBIT Next 3Y10.28%
EBIT Next 5Y11.14%
FCF growth 1Y3.26%
FCF growth 3Y-6.89%
FCF growth 5Y0.82%
OCF growth 1Y-15.28%
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 14.42 and the Price/Book (PB) ratio is 2.58.