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 187 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 is not valued too expensively and it also shows a decent growth rate. This makes ALGN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ALGN was profitable.
ALGN had a positive operating cash flow in the past year.
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 87.70% of the companies in the same industry.
ALGN has a better Return On Equity (11.19%) than 86.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.25%, ALGN belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
ALGN had an Average Return On Invested Capital over the past 3 years of 12.31%. This is above the industry average of 8.19%.
| 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.
ALGN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.16%, ALGN belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
ALGN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 69.98%, ALGN belongs to the best of the industry, outperforming 81.28% 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 | 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
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.
ALGN has less shares outstanding than it did 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 5.59. 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 5.59, ALGN belongs to the top of the industry, outperforming 80.75% 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 | 5.59 |
ROIC/WACC1.11
WACC9.21%
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 has a Current ratio of 1.26. This is amonst the worse of the industry: ALGN underperforms 84.49% 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.
With a Quick ratio value of 1.14, ALGN is not doing good in the industry: 72.19% of the companies in the same industry are doing better.
The current and quick ratio evaluation for ALGN is rather negative, while it does have 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.
Looking at the last year, ALGN shows a small growth in Revenue. The Revenue has grown by 4.03% in the last 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
Based on estimates for the next years, ALGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.88% on average per year.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.
EPS Next Y10.71%
EPS Next 2Y10.33%
EPS Next 3Y11.79%
EPS Next 5Y13.88%
Revenue Next Year4.37%
Revenue Next 2Y5.24%
Revenue Next 3Y6.2%
Revenue Next 5Y9.01%
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
The Price/Earnings ratio is 22.65, which indicates a rather expensive current valuation of ALGN.
85.03% 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 similar valuation than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 20.16 indicates a rather expensive valuation of ALGN.
ALGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALGN is cheaper than 82.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALGN to the average of the S&P500 Index (22.83), we can say ALGN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 20.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGN is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALGN is valued a bit cheaper than 77.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.24 | ||
| EV/EBITDA | 18.17 |
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.
ALGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)1.91
EPS Next 2Y10.33%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
No dividends for ALGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALIGN TECHNOLOGY INC
NASDAQ:ALGN (12/20/2024, 8:00:00 PM)
After market: 211.06 0 (0%)211.06
-2.52 (-1.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners86.02%
Inst Owner Change1.12%
Ins Owners6.01%
Ins Owner Change0.04%
Market Cap15.76B
Analysts74.55
Price Target263.51 (24.85%)
Short Float %3.63%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-6.51%
PT rev (3m)-9.65%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 20.16 | ||
| P/S | 3.98 | ||
| P/FCF | 42.24 | ||
| P/OCF | 31.57 | ||
| P/B | 3.99 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 18.17 |
EPS(TTM)9.32
EY4.42%
EPS(NY)10.47
Fwd EY4.96%
FCF(TTM)5
FCFY2.37%
OCF(TTM)6.68
OCFY3.17%
SpS53.05
BVpS52.84
TBVpS44.97
PEG (NY)2.11
PEG (5Y)1.91
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 | 5.59 |
F-Score8
WACC9.21%
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 Y10.71%
EPS Next 2Y10.33%
EPS Next 3Y11.79%
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 2Y5.24%
Revenue Next 3Y6.2%
Revenue Next 5Y9.01%
EBIT growth 1Y14.03%
EBIT growth 3Y19.25%
EBIT growth 5Y7.07%
EBIT Next Year18.36%
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%