ALIGN TECHNOLOGY INC (ALGN) Stock Fundamental Analysis
USA - NASDAQ:ALGN - US0162551016 - Common Stock
128.43 USD
-1.36 (-1.05%)
128 USD
-0.43 (-0.33%)
Taking everything into account, ALGN scores 6 out of 10 in our fundamental rating. ALGN was compared to 191 industry peers in the Health Care Equipment & Supplies industry. ALGN gets an excellent profitability rating and is at the same time showing great financial health properties. ALGN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, ALGN could be worth investigating further 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.
In the past 5 years ALGN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.04%, ALGN belongs to the top of the industry, outperforming 88.48% of the companies in the same industry.
ALGN has a better Return On Equity (11.18%) than 87.96% of its industry peers.
With an excellent Return On Invested Capital value of 10.50%, ALGN belongs to the best of the industry, outperforming 90.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALGN is above the industry average of 8.89%.
| 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
ALGN has a better Profit Margin (11.04%) than 84.82% of its industry peers.
ALGN's Profit Margin has declined in the last couple of years.
ALGN's Operating Margin of 16.14% is amongst the best of the industry. ALGN outperforms 86.39% of its industry peers.
ALGN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.84%, ALGN is in the better half of the industry, outperforming 79.58% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALGN is still 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.
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 4.03. This indicates that ALGN is financially healthy and has little risk of bankruptcy at the moment.
ALGN's Altman-Z score of 4.03 is fine compared to the rest of the industry. ALGN outperforms 74.87% 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 | 4.03 |
ROIC/WACC1.21
WACC8.67%
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.
ALGN's Current ratio of 1.23 is on the low side compared to the rest of the industry. ALGN is outperformed by 81.15% of its industry peers.
ALGN has a Quick Ratio of 1.10. This is a normal value and indicates that ALGN is financially healthy and should not expect problems in meeting its short term obligations.
ALGN has a worse Quick ratio (1.10) than 72.77% 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 3.29%.
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%.
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)3.29%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%3.32%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.56%
3.2 Future
The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
ALGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y10.07%
EPS Next 2Y8.74%
EPS Next 3Y8.61%
EPS Next 5Y10.97%
Revenue Next Year0.02%
Revenue Next 2Y1.66%
Revenue Next 3Y2.59%
Revenue Next 5Y6.61%
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 13.65 indicates a correct valuation of ALGN.
Based on the Price/Earnings ratio, ALGN is valued cheaply inside the industry as 87.96% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.53, ALGN is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.63, the valuation of ALGN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALGN is valued cheaper than 91.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. ALGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 11.63 |
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 87.96% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALGN is valued cheaply inside the industry as 92.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 10.57 |
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)1.15
EPS Next 2Y8.74%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.43
-1.36 (-1.05%)
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 Change0.16%
Ins Owners0.68%
Ins Owner Change2.79%
Market Cap9.31B
Analysts78.33
Price Target190.41 (48.26%)
Short Float %3.3%
Short Ratio1.28
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)-0.06%
PT rev (3m)-17.54%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-11.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.77%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 11.63 | ||
| P/S | 2.35 | ||
| P/FCF | 14.74 | ||
| P/OCF | 12.73 | ||
| P/B | 2.38 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)9.41
EY7.33%
EPS(NY)11.04
Fwd EY8.6%
FCF(TTM)8.71
FCFY6.78%
OCF(TTM)10.09
OCFY7.85%
SpS54.69
BVpS53.98
TBVpS45.77
PEG (NY)1.36
PEG (5Y)1.15
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%
ROICexcg growth 3Y-14.88%
ROICexcg 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 | 4.03 |
F-Score7
WACC8.67%
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)3.29%
EPS 3Y-5.96%
EPS 5Y11.91%
EPS Q2Q%3.32%
EPS Next Y10.07%
EPS Next 2Y8.74%
EPS Next 3Y8.61%
EPS Next 5Y10.97%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y0.39%
Revenue growth 5Y10.69%
Sales Q2Q%-1.56%
Revenue Next Year0.02%
Revenue Next 2Y1.66%
Revenue Next 3Y2.59%
Revenue Next 5Y6.61%
EBIT growth 1Y-6.39%
EBIT growth 3Y-11.72%
EBIT growth 5Y5.48%
EBIT Next Year19.51%
EBIT Next 3Y10.28%
EBIT Next 5Y11.32%
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%