NasdaqGS:ALGN

Stock Analysis Report

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.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.


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


Market Performance


7 Day Return

6.9%

ALGN

1.9%

US Medical Equipment

0.4%

US Market


1 Year Return

-31.6%

ALGN

15.6%

US Medical Equipment

6.9%

US Market

Return vs Industry: ALGN underperformed the US Medical Equipment industry which returned 15.6% over the past year.

Return vs Market: ALGN underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ALGNIndustryMarket
7 Day6.9%1.9%0.4%
30 Day18.6%-1.6%-1.2%
90 Day-23.9%0.01%-0.4%
1 Year-31.6%-31.6%16.5%15.6%9.3%6.9%
3 Year139.0%139.0%72.1%66.9%45.8%36.4%
5 Year315.3%315.3%125.8%100.8%62.9%45.1%

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

Valuation

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

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ALGN ($213.88) is trading below our estimate of fair value ($301.29)

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


Price To Earnings Ratio

PE vs Industry: ALGN is good value based on its PE Ratio (41x) compared to the Medical Equipment industry average (42.2x).

PE vs Market: ALGN is poor value based on its PE Ratio (41x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ALGN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ALGN is overvalued based on its PB Ratio (12.4x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALGN's forecast earnings growth (19.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ALGN's earnings (19.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: ALGN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALGN's revenue (17.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ALGN's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ALGN's Return on Equity is forecast to be high in 3 years time (34.3%)


Next Steps

Past Performance

How has Align Technology performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ALGN's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: ALGN's earnings growth over the past year (41.5%) exceeds its 5-year average (23.9% per year).

Earnings vs Industry: ALGN earnings growth over the past year (41.5%) exceeded the Medical Equipment industry 28.2%.


Return on Equity

High ROE: ALGN's Return on Equity (30.4%) is considered high.


Return on Assets

ROA vs Industry: ALGN has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: ALGN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Align Technology's financial position?


Financial Position Analysis

Short Term Liabilities: ALGN's short term assets ($1.5B) exceeds its short term liabilities ($789.0M)

Long Term Liabilities: ALGN's short term assets (1.5B) exceeds its long term liabilities (183.3M)


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 covered by short term assets (assets are 102553578177178921.163020x debt).


Next Steps

Dividend

What is Align Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Align Technology's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Joe Hogan (62yo)

4.3yrs

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 ($USD41.76M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.4yrs

Average Tenure

52yo

Average Age

Experienced Management: ALGN's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

13.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ALGN's board of directors are seasoned and experienced ( 13.7 years average tenure).


Insider Trading

Insider Buying: ALGN insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$165,24003 Sep 19
Yuval Shaked
EntityIndividual
Shares900
Max PriceUS$183.60
SellUS$1,776,41928 Aug 19
Joseph Lacob
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$177.64
SellUS$746,35626 Aug 19
Andrea Saia
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,157
Max PriceUS$179.54
BuyUS$99,85314 Aug 19
Anne Myong
EntityIndividual
Shares564
Max PriceUS$177.04
SellUS$5,453,78713 Aug 19
Joseph Lacob
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$183.50
BuyUS$206,92106 Aug 19
Vamsi Pudipeddi
EntityIndividual
Role
Head of Marketing
Senior VP & Chief Marketing
Shares1,100
Max PriceUS$188.11
BuyUS$998,16906 Aug 19
Joseph Hogan
EntityIndividual
Role
Chief Executive Officer
President
Shares4,995
Max PriceUS$199.83
SellUS$681,12903 Jun 19
John Morici
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP of Global Finance
Shares2,374
Max PriceUS$286.91
SellUS$2,887,55531 May 19
Charles Larkin
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares9,734
Max PriceUS$296.65
SellUS$939,39829 May 19
Gregory Santora
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$313.13
SellUS$3,685,64828 May 19
Thomas Prescott
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,000
Max PriceUS$307.76
SellUS$973,52028 May 19
Warren Thaler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,115
Max PriceUS$315.17
SellUS$1,092,23620 May 19
Jennifer Olson-Wilk
EntityIndividual
Shares3,291
Max PriceUS$331.89
SellUS$1,600,00016 May 19
Joseph Lacob
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$320.00
SellUS$1,038,12216 May 19
Roger George
EntityIndividual
Shares3,214
Max PriceUS$323.00
SellUS$6,321,93816 May 19
Sreelakshmi Kolli
EntityIndividual
Shares19,495
Max PriceUS$328.27
SellUS$4,892,67016 May 19
Raphael Pascaud
EntityIndividual
Shares15,000
Max PriceUS$328.00
SellUS$4,352,50016 May 19
Julie Tay
EntityIndividual
Role
Senior Key Executive
Senior VP & MD of Asia Pacific
Shares13,500
Max PriceUS$325.00
SellUS$1,157,00009 May 19
Julie Tay
EntityIndividual
Role
Senior Key Executive
Senior VP & MD of Asia Pacific
Shares3,560
Max PriceUS$325.00
SellUS$5,166,21401 Mar 19
Joseph Lacob
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$259.00
SellUS$102,20827 Feb 19
Yuval Shaked
EntityIndividual
Shares400
Max PriceUS$255.52
SellUS$318,22814 Feb 19
Julie Tay
EntityIndividual
Role
Senior Key Executive
Senior VP & MD of Asia Pacific
Shares1,250
Max PriceUS$254.58
SellUS$1,993,07503 Dec 18
Christopher Puco
EntityIndividual
Shares8,764
Max PriceUS$228.05
SellUS$2,318,15103 Dec 18
Joseph Lacob
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$231.82
SellUS$1,115,77329 Nov 18
Sreelakshmi Kolli
EntityIndividual
Shares5,000
Max PriceUS$223.92

Ownership Breakdown


Management Team

  • Joe Hogan (62yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$41.76m
  • Emory Wright (49yo)

    Senior Vice President of Global Operations

    • Tenure: 11.8yrs
    • Compensation: US$3.15m
  • Julie Coletti

    Senior VP and Chief Legal & Regulatory Officer

    • Tenure: 0.4yrs
  • Julie Tay (52yo)

    Senior VP & MD of Asia Pacific

    • Tenure: 6.6yrs
  • Zelko Relic (54yo)

    CTO and Senior VP of Global Research & Development

    • Tenure: 1.7yrs
    • Compensation: US$3.08m
  • Simon Beard (52yo)

    MD for Americas Region & Senior VP

    • Tenure: 4yrs
  • Stuart Hockridge (47yo)

    Senior Vice President of Global Human Resources

    • Tenure: 3.4yrs
    • Compensation: US$3.35m
  • John Morici (52yo)

    CFO & Senior VP of Global Finance

    • Tenure: 2.9yrs
    • Compensation: US$3.36m
  • Vamsi Pudipeddi (47yo)

    Senior VP & Chief Marketing

    • Tenure: 0.7yrs
  • Shirley Stacy

    Vice President of Corporate Communications & Investor Relations

    • Tenure: 0yrs

Board Members

  • Joe Lacob (63yo)

    Independent Director

    • Tenure: 22.2yrs
    • Compensation: US$365.05k
  • Greg Santora (68yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$390.55k
  • Tim Prescott (63yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$355.05k
  • Sue Siegel (58yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$359.22k
  • Joe Hogan (62yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$41.76m
  • Greg Morrow (67yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$382.05k
  • Ray Larkin (70yo)

    Independent Chairman

    • Tenure: 13.7yrs
    • Compensation: US$536.93k
  • Warren Thaler (56yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$373.55k
  • Andrea Saia (61yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$382.05k
  • Kevin Dallas (55yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$437.72k

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$17.083b
  • Shares outstanding: 79.87m
  • 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

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 dent ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.