Align Technology
Market Cap
US$44.8b
Last Updated
2021/02/23 23:51 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
Rewards
PE ratio (25.2x) is below the Medical Equipment industry average (55.5x)
Risk Analysis
Earnings are forecast to decline by an average of 22.3% per year for the next 3 years
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 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
-7.6%
ALGN
-3.8%
US Medical Equipment
-2.5%
US Market
1 Year Return
147.3%
ALGN
27.3%
US Medical Equipment
34.1%
US Market
Return vs Industry: ALGN exceeded the US Medical Equipment industry which returned 27.3% over the past year.
Return vs Market: ALGN exceeded the US Market which returned 34.1% over the past year.
Shareholder returns
| ALGN | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.6% | -3.8% | -2.5% |
| 30 Day | 6.3% | 0.2% | 0.1% |
| 90 Day | 19.9% | 8.8% | 4.5% |
| 1 Year | 147.3%147.3% | 28.4%27.3% | 37.1%34.1% |
| 3 Year | 115.2%115.2% | 72.0%67.6% | 58.0%47.9% |
| 5 Year | 736.7%736.7% | 154.3%135.4% | 131.9%106.2% |
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
2 weeks ago | Simply Wall St
Trade Alert: The Independent Director Of Align Technology, Inc. (NASDAQ:ALGN), George Morrow, Has Sold Some Shares Recently2 weeks ago | Simply Wall St
Estimating The Fair Value Of Align Technology, Inc. (NASDAQ:ALGN)4 weeks ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Align Technology, Inc.'s (NASDAQ:ALGN) Stock?Valuation
Is Align Technology undervalued compared to its fair value and its price relative to the market?
25.18x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ALGN ($567.81) is trading above our estimate of fair value ($347.17)
Significantly Below Fair Value: ALGN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ALGN is good value based on its PE Ratio (25.2x) compared to the US Medical Equipment industry average (55.5x).
PE vs Market: ALGN is poor value based on its PE Ratio (25.2x) compared to the US market (21.5x).
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 (13.8x) compared to the US Medical Equipment industry average (5.1x).
Next Steps
Future Growth
How is Align Technology forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-22.3%
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 (-22.3% per year).
Earnings vs Market: ALGN's earnings are forecast to decline over the next 3 years (-22.3% per year).
High Growth Earnings: ALGN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ALGN's revenue (18.6% per year) is forecast to grow faster than the US market (10.5% per year).
High Growth Revenue: ALGN's revenue (18.6% 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 (21.6%)
Next Steps
Past Performance
How has Align Technology performed over the past 5 years?
54.2%
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 (71.8%) are higher than last year (19.1%).
Past Earnings Growth Analysis
Earnings Trend: ALGN's earnings have grown significantly by 54.2% per year over the past 5 years.
Accelerating Growth: ALGN's earnings growth over the past year (287.2%) exceeds its 5-year average (54.2% per year).
Earnings vs Industry: ALGN earnings growth over the past year (287.2%) exceeded the Medical Equipment industry 10%.
Return on Equity
High ROE: ALGN's Return on Equity (54.9%) 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 ($1.8B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: ALGN's short term assets ($1.8B) exceed its long term liabilities ($270.2M).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
Joe Hogan (63 yo)
5.67yrs
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 ($USD10.54M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.67yrs | US$18.27m | 0.15% $ 65.6m | |
| CFO & Senior VP of Global Finance | 4.25yrs | US$3.98m | 0.0037% $ 1.7m | |
| Senior Vice President of Global Operations | 13.17yrs | US$3.56m | 0.023% $ 10.3m | |
| Senior VP and Chief Product | 2yrs | US$3.48m | no data | |
| Senior VP & MD of Asia Pacific | 7.92yrs | US$3.68m | 0.022% $ 10.0m | |
| Senior VP & Chief Technology Officer | 3yrs | US$3.08m | 0.017% $ 7.8m | |
| Vice President of Corporate Communications & Investor Relations | no data | no data | no data | |
| Senior VP and Chief Legal & Regulatory Officer | 1.75yrs | no data | 0% $ 0 | |
| Senior Vice President of Global Human Resources | 4.75yrs | US$3.35m | 0.012% $ 5.6m | |
| MD for Americas Region & Senior VP | 5.33yrs | no data | 0.022% $ 10.0m | |
| Senior VP & MD of Customer Success | 4.5yrs | no data | 0.0029% $ 1.3m | |
| Senior VP & Chief Digital Officer | no data | no data | 0.019% $ 8.4m |
4.6yrs
Average Tenure
51.5yo
Average Age
Experienced Management: ALGN's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.67yrs | US$18.27m | 0.15% $ 65.6m | |
| Independent Director | 23.5yrs | US$364.98k | 0.20% $ 87.5m | |
| Independent Director | 17.58yrs | US$390.48k | 0.015% $ 6.6m | |
| Director | 18.92yrs | US$354.98k | 0.067% $ 30.0m | |
| Independent Director | 3.92yrs | US$359.98k | 0.0049% $ 2.2m | |
| Independent Director | 15yrs | US$381.98k | 0.021% $ 9.4m | |
| Independent Chairman | 15yrs | US$499.97k | 0.041% $ 18.2m | |
| Independent Director | 16.67yrs | US$373.48k | 0.12% $ 53.6m | |
| Independent Director | 1.5yrs | US$211.16k | 0.0019% $ 850.7k | |
| Independent Director | 7.58yrs | US$381.98k | 0.016% $ 7.1m | |
| Independent Director | 2.92yrs | US$354.98k | 0.0030% $ 1.3m |
15.0yrs
Average Tenure
63yo
Average Age
Experienced Board: ALGN's board of directors are seasoned and experienced ( 15 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$44.772b
- Shares outstanding: 78.85m
- Website: https://www.aligntech.com
Number of Employees
Location
- Align Technology, Inc.
- 410 North Scottsdale Road
- Suite 1300
- Tempe
- Arizona
- 85281
- 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 orthodontists and general practitioner dentists,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/23 23:51 |
| End of Day Share Price | 2021/02/23 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.