NasdaqGS:ALGN

Stock Analysis Report

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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.


Snowflake Analysis

Flawless balance sheet with solid 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.5%

ALGN

-1.4%

US Medical Equipment

1.2%

US Market


1 Year Return

67.1%

ALGN

14.9%

US Medical Equipment

16.8%

US Market

Return vs Industry: ALGN exceeded the US Medical Equipment industry which returned 14.9% over the past year.

Return vs Market: ALGN exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

ALGNIndustryMarket
7 Day5.5%-1.4%1.2%
30 Day11.3%7.8%4.9%
90 Day51.3%11.7%20.0%
1 Year67.1%67.1%15.9%14.9%19.3%16.8%
3 Year70.9%70.9%72.7%68.1%43.7%34.4%
5 Year402.5%402.5%116.8%100.0%75.5%56.6%

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?

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALGN ($304.13) is trading below our estimate of fair value ($389.31)

Significantly Below Fair Value: ALGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALGN is good value based on its PE Ratio (14.1x) compared to the US Medical Equipment industry average (51.4x).

PE vs Market: ALGN is good value based on its PE Ratio (14.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ALGN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALGN is overvalued based on its PB Ratio (8.4x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Align Technology forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALGN's earnings are forecast to decline over the next 3 years (-40.6% per year).

Earnings vs Market: ALGN's earnings are forecast to decline over the next 3 years (-40.6% per year).

High Growth Earnings: ALGN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALGN's revenue (22.3% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: ALGN's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALGN's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Align Technology performed over the past 5 years?

49.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALGN has a high level of non-cash earnings.

Growing Profit Margin: ALGN's current net profit margins (78.7%) are higher than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: ALGN's earnings have grown significantly by 49.9% per year over the past 5 years.

Accelerating Growth: ALGN's earnings growth over the past year (307.7%) exceeds its 5-year average (49.9% per year).

Earnings vs Industry: ALGN earnings growth over the past year (307.7%) exceeded the Medical Equipment industry -0.2%.


Return on Equity

High ROE: ALGN's Return on Equity (59.8%) is considered outstanding.


Next Steps

Financial Health

How is Align Technology's financial position?


Financial Position Analysis

Short Term Liabilities: ALGN's short term assets ($1.1B) exceed its short term liabilities ($941.6M).

Long Term Liabilities: ALGN's short term assets ($1.1B) exceed its long term liabilities ($239.2M).


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


Next Steps

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?

4.1yrs

Average management tenure


CEO

Joe Hogan (63 yo)

5.17yrs

Tenure

US$18,269,139

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 ($USD18.27M) is above average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Hogan
President5.17yrsUS$18.27m0.26%
$ 61.2m
John Morici
CFO & Senior VP of Global Finance3.75yrsUS$3.98m0.0048%
$ 1.2m
Emory Wright
Senior Vice President of Global Operations12.67yrsUS$3.56m0.043%
$ 10.4m
Vamsi Pudipeddi
Senior VP and Chief Product1.5yrsUS$3.48mno data
Julie Tay
Senior VP & MD of Asia Pacific7.42yrsUS$3.68m0.032%
$ 7.7m
Zelko Relic
Senior VP & Chief Technology Officer2.5yrsUS$3.08m0.046%
$ 11.1m
Shirley Stacy
Vice President of Corporate Communications & Investor Relationsno datano datano data
Julie Coletti
Senior VP and Chief Legal & Regulatory Officer1.25yrsno data0.0011%
$ 270.8k
Stuart Hockridge
Senior Vice President of Global Human Resources4.25yrsUS$3.35m0.012%
$ 2.8m
Simon Beard
MD for Americas Region & Senior VP4.83yrsno data0.028%
$ 6.8m
Jennifer Olson-Wilk
Senior VP & MD of Customer Success4yrsno data0.0083%
$ 2.0m
Sreelakshmi Kolli
Senior VP & Chief Digital Officerno datano data0.019%
$ 4.5m

4.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: ALGN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Hogan
President5.17yrsUS$18.27m0.26%
$ 61.2m
Joseph Lacob
Independent Director23yrsUS$364.98k0.22%
$ 53.0m
Gregory Santora
Independent Director17.08yrsUS$390.48k0.020%
$ 4.7m
Thomas Prescott
Director18.42yrsUS$354.98k0.13%
$ 31.1m
Susan Siegel
Independent Director3.42yrsUS$359.98k0.0049%
$ 1.2m
George Morrow
Independent Director14.5yrsUS$381.98k0.072%
$ 17.2m
Charles Larkin
Independent Chairman14.5yrsUS$499.97k0.041%
$ 9.8m
Warren Thaler
Independent Director16.17yrsUS$373.48k0.15%
$ 36.0m
Anne Myong
Independent Director1yrUS$211.16k0.0019%
$ 455.3k
Andrea Saia
Independent Director7.08yrsUS$381.98k0.019%
$ 4.6m
Kevin Dallas
Independent Director2.42yrsUS$354.98k0.0030%
$ 711.7k

14.5yrs

Average Tenure

63yo

Average Age

Experienced Board: ALGN's board of directors are seasoned and experienced ( 14.5 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$23.961b
  • Shares outstanding: 78.79m
  • Website: https://www.aligntech.com

Number of Employees


Location

  • Align Technology, Inc.
  • 2820 Orchard Parkway
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALGNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2001
AFWDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2001
0HCKLSE (London Stock Exchange)YesCommon StockGBUSDJan 2001
ALGN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 2001
ALGNWBAG (Wiener Boerse AG)YesCommon StockATEURJan 2001
A1LG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 SHS UNSPONBRBRLJan 2020

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 Analysis2020/08/11 23:52
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.