Align Technology
Market Cap
US$21.3b
Last Updated
2020/02/19 23:45 UTC
Data Sources
Company Financials +
Executive Summary
Align Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontics, and restorative and aesthetic dentistry worldwide.
Rewards
Risk Analysis
No risks detected for ALGN from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven track record.
Similar Companies
Share Price & News
How has Align Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALGN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.3%
ALGN
1.1%
US Medical Equipment
0.5%
US Market
1 Year Return
9.2%
ALGN
21.9%
US Medical Equipment
20.3%
US Market
Return vs Industry: ALGN underperformed the US Medical Equipment industry which returned 21.9% over the past year.
Return vs Market: ALGN underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| ALGN | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 1.1% | 0.5% |
| 30 Day | -1.3% | 0.4% | 2.0% |
| 90 Day | 1.8% | 8.3% | 9.4% |
| 1 Year | 9.2%9.2% | 22.9%21.9% | 22.8%20.3% |
| 3 Year | 174.2%174.2% | 82.5%77.4% | 50.1%40.4% |
| 5 Year | 393.5%393.5% | 116.4%93.7% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Align Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
14 hours ago | Simply Wall St
If You Like EPS Growth Then Check Out Align Technology (NASDAQ:ALGN) Before It's Too Late1 week ago | Simply Wall St
Stuart Hockridge Is The Senior Vice President of Global Human Resources of Align Technology, Inc. (NASDAQ:ALGN) And They Just Sold 86% Of Their Shares2 weeks ago | Simply Wall St
Align Technology, Inc. Yearly Results Just Came Out: Here's What Analysts Are Forecasting For Next YearValuation
Is Align Technology undervalued compared to its fair value and its price relative to the market?
39.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALGN ($277.15) is trading below our estimate of fair value ($458.63)
Significantly Below Fair Value: ALGN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALGN is poor value based on its PE Ratio (49.7x) compared to the Medical Equipment industry average (47.5x).
PE vs Market: ALGN is poor value based on its PE Ratio (49.7x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: ALGN is poor value based on its PEG Ratio (8.5x)
Price to Book Ratio
PB vs Industry: ALGN is overvalued based on its PB Ratio (16.2x) compared to the US Medical Equipment industry average (4.1x).
Next Steps
Future Growth
How is Align Technology forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALGN's forecast earnings growth (5.8% per year) is above the savings rate (1.7%).
Earnings vs Market: ALGN's earnings (5.8% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: ALGN's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALGN's revenue (15.5% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ALGN's revenue (15.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALGN's Return on Equity is forecast to be high in 3 years time (38.3%)
Next Steps
Past Performance
How has Align Technology performed over the past 5 years?
25.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALGN has high quality earnings.
Growing Profit Margin: ALGN's current net profit margins (18.4%) are lower than last year (20.4%).
Past Earnings Growth Analysis
Earnings Trend: ALGN's earnings have grown significantly by 25.7% per year over the past 5 years.
Accelerating Growth: ALGN's earnings growth over the past year (10.6%) is below its 5-year average (25.7% per year).
Earnings vs Industry: ALGN earnings growth over the past year (10.6%) exceeded the Medical Equipment industry 7.1%.
Return on Equity
High ROE: ALGN's Return on Equity (32.9%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Align Technology's financial position?
Financial Position Analysis
Short Term Liabilities: ALGN's short term assets ($1.6B) exceed its short term liabilities ($971.0M).
Long Term Liabilities: ALGN's short term assets ($1.6B) exceed its long term liabilities ($183.6M).
Debt to Equity History and Analysis
Debt Level: ALGN is debt free.
Reducing Debt: ALGN has not had any debt for past 5 years.
Debt Coverage: ALGN has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ALGN has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: ALGN has a high level of physical assets or inventory.
Debt Coverage by Assets: ALGN's debt is not covered by short term assets (assets are -119.2x debt).
Next Steps
Dividend
What is Align Technology's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ALGN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ALGN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ALGN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ALGN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ALGN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Joe Hogan (62yo)
4.7yrs
Tenure
US$41,758,338
Compensation
Mr. Joseph M. Hogan, also known as Joe, has been Chief Executive Officer and President of Align Technology, Inc. since June 01, 2015. Mr. Hogan serves as a Senior Advisor of ABB Ltd at ABB S.A. He served a ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD41.76M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.7yrs | US$41.76m | 0.20% $41.9m | |
| CFO & Senior VP of Global Finance | 3.3yrs | US$3.36m | 0.0074% $1.6m | |
| Senior Vice President of Global Operations | 12.2yrs | US$3.15m | 0.032% $6.8m | |
| CTO and Senior VP of Global Research & Development | 2yrs | US$3.08m | 0.035% $7.4m | |
| Vice President of Corporate Communications & Investor Relations | 0yrs | no data | no data | |
| Senior VP and Chief Legal & Regulatory Officer | 0.8yrs | no data | 0.00047% $100.0k | |
| Senior VP & Chief Marketing | 1yrs | no data | 0.0014% $297.8k | |
| Senior Vice President of Global Human Resources | 3.8yrs | US$3.35m | 0.00016% $34.0k | |
| Senior VP & MD of Asia Pacific | 6.9yrs | no data | 0.014% $3.1m | |
| MD for Americas Region & Senior VP | 4.3yrs | no data | 0.017% $3.7m |
3.8yrs
Average Tenure
52yo
Average Age
Experienced Management: ALGN's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.7yrs | US$41.76m | 0.20% $41.9m | |
| Independent Director | 22.5yrs | US$365.05k | 0.23% $49.5m | |
| Independent Director | 16.6yrs | US$390.55k | 0.019% $4.0m | |
| Director | 17.9yrs | US$355.05k | 0.17% $36.8m | |
| Independent Director | 2.9yrs | US$359.22k | 0.0038% $802.0k | |
| Independent Director | 14yrs | US$382.05k | 0.070% $15.0m | |
| Independent Chairman | 14yrs | US$536.93k | 0.040% $8.4m | |
| Independent Director | 15.7yrs | US$373.55k | 0.16% $33.6m | |
| Independent Director | 6.6yrs | US$382.05k | 0.018% $3.8m | |
| Independent Director | 1.9yrs | US$437.72k | 0.0018% $382.9k |
14.0yrs
Average Tenure
62.5yo
Average Age
Experienced Board: ALGN's board of directors are seasoned and experienced ( 14 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALGN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Align Technology, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Align Technology, Inc.
- Ticker: ALGN
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Health Care Supplies
- Sector: Healthcare
- Market Cap: US$21.274b
- Shares outstanding: 78.81m
- Website: https://www.aligntech.com
Number of Employees
Location
- Align Technology, Inc.
- 2820 Orchard Parkway
- San Jose
- California
- 95134
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ALGN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 2001 |
| AFW | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 2001 |
| 0HCK | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 2001 |
| ALGN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 2001 |
| ALGN | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 2001 |
| A1LG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Align Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontics, and restorative and aesthetic dentistry worldwide. It operates in two segments, Clear Aligner; and Scanners and Services. The Clear Aligner segment consists of comprehensive products, including Invisalign Comprehensive treatment that addresses the orthodontic needs of teenage patients, such as compliance indicators and compensation for tooth eruption; Invisalign Assist treatment, which offers support to dental practitioners throughout the treatment process, including progress tracking; and Invisalign First Phase I and Invisalign First Comprehensive Phase II package for younger patients with early mixed dentition with a mixture of primary/baby and permanent teeth. This segment’s non-comprehensive products comprise Invisalign Express 10, Invisalign Express 5, Express Package, Lite Package, Invisalign Go, and SmileDirectClub; and non-case products include retention products, Invisalign training fees, and sales of ancillary products, such as cleaning material, and adjusting tools used by dental professionals during the course of treatment. The Scanners and Services segment offers restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons; software for orthodontists for digital records storage, orthodontic diagnosis, and for the fabrication of printed models and retainers; computer-aided design/computer-aided manufacturing services and ancillary products, such as disposable sleeves for the wand; and iTero applications and tools. The company was founded in 1997 and is headquartered in San Jose, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 23:45 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.