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Market Cap

US$44.3b

Last Updated

2021/05/17 22:47 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 orthodontists and general practitioner dentists, and restorative and aesthetic dentistry. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ALGN's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

ALGN

-2.0%

US Medical Equipment

-0.6%

US Market


1 Year Return

143.9%

ALGN

31.2%

US Medical Equipment

46.0%

US Market

Return vs Industry: ALGN exceeded the US Medical Equipment industry which returned 34.4% over the past year.

Return vs Market: ALGN exceeded the US Market which returned 50.8% over the past year.


Shareholder returns

ALGNIndustryMarket
7 Day0.9%-2.0%-0.6%
30 Day-7.7%-3.7%-1.8%
90 Day-8.9%-3.2%0.2%
1 Year143.9%143.9%32.2%31.2%48.4%46.0%
3 Year85.0%85.0%66.7%62.7%60.5%50.4%
5 Year623.1%623.1%150.9%132.7%125.9%100.9%

Long-Term 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

Valuation

Is Align Technology undervalued compared to its fair value and its price relative to the market?

11.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALGN ($559.52) is trading below our estimate of fair value ($633.6)

Significantly Below Fair Value: ALGN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ALGN is poor value based on its PE Ratio (96.3x) compared to the US Medical Equipment industry average (58.1x).

PE vs Market: ALGN is poor value based on its PE Ratio (96.3x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ALGN is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: ALGN is overvalued based on its PB Ratio (13x) compared to the US Medical Equipment industry average (4.4x).


Future Growth

How is Align Technology forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALGN's forecast earnings growth (23% per year) is above the savings rate (2%).

Earnings vs Market: ALGN's earnings (23% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALGN's revenue (16.9% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: ALGN's revenue (16.9% 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 (20.9%)


Past Performance

How has Align Technology performed over the past 5 years?

47.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALGN has high quality earnings.

Growing Profit Margin: ALGN's current net profit margins (16.3%) are lower than last year (78.4%).


Past Earnings Growth Analysis

Earnings Trend: ALGN's earnings have grown significantly by 47.7% per year over the past 5 years.

Accelerating Growth: ALGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALGN had negative earnings growth (-75.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (10.5%).


Return on Equity

High ROE: ALGN's Return on Equity (13.5%) is considered low.


Financial Health

How is Align Technology's financial position?


Financial Position Analysis

Short Term Liabilities: ALGN's short term assets ($2.1B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: ALGN's short term assets ($2.1B) exceed its long term liabilities ($282.4M).


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


Dividend

What is Align Technology 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 recent payouts.

High Dividend: Unable to evaluate ALGN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

4.9yrs

Average management tenure


CEO

Joe Hogan (63 yo)

5.92yrs

Tenure

US$15,522,289

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 ($USD15.52M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALGN's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: ALGN's board of directors are seasoned and experienced ( 15.3 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$44.278b
  • Shares outstanding: 79.14m
  • Website: https://www.aligntech.com

Number of Employees


Location

  • Align Technology, Inc.
  • 410 North Scottsdale Road
  • Suite 1300
  • Tempe
  • Arizona
  • 85281
  • United States

Listings


Biography

Align Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontists and general practitioner dentists,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 22:47
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.