Align Technology (NasdaqGS:ALGN) - Share price, News & Analysis

ALGN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

ALGN Stock Overview

Rewards

Trading at 39% below our estimate of its fair value

Earnings are forecast to grow 21.87% per year

Earnings grew by 54.1% over the past year

Risk Analysis

ALGN passed our risk checks.

Align Technology Competitors

SmileDirectClub

NasdaqGS:SDC

US$572.8m

NYSE:MMM

US$81.8b

Price History & Performance

Summary of all time highs, changes and price drops for Align Technology
Historical stock prices
Current Share Price	US$275.04
52 Week High	US$737.45
52 Week Low	US$250.64
Beta	1.76
1 Month Change	-23.72%
3 Month Change	-44.84%
1 Year Change	-53.52%
3 Year Change	-11.70%
5 Year Change	93.55%
Change since IPO	1,488.68%

Recent News & Updates

Apr 30

Is It Too Late To Consider Buying Align Technology, Inc. (NASDAQ:ALGN)?

Let's talk about the popular Align Technology, Inc. ( NASDAQ:ALGN ). The company's shares received a lot of attention...

Apr 11

Here's What Align Technology's (NASDAQ:ALGN) Strong Returns On Capital Mean

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	ALGN	US Medical Equipment	US Market
7D	-0.2%	0.5%	-2.7%
1Y	-53.5%	-16.2%	-12.9%

Return vs Industry: ALGN underperformed the US Medical Equipment industry which returned -16.2% over the past year.

Return vs Market: ALGN underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is ALGN's price volatile compared to industry and market?
ALGN volatility
ALGN Average Weekly Movement	9.4%
Medical Equipment Industry Average Movement	10.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: ALGN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ALGN's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	23,625	Joe Hogan	https://www.aligntech.com

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. 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 mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of seven and ten years, which is a mixture of primary/baby and permanent teeth.

Align Technology Fundamentals Summary

How do Align Technology's earnings and revenue compare to its market cap?
ALGN fundamental statistics
Market Cap	US$21.67b
Earnings (TTM)	US$705.94m
Revenue (TTM)	US$4.03b

30.7x

P/E Ratio

5.4x

P/S Ratio

Is ALGN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALGN income statement (TTM)
Revenue	US$4.03b
Cost of Revenue	US$1.06b
Gross Profit	US$2.97b
Other Expenses	US$2.26b
Earnings	US$705.94m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	8.96
Gross Margin	73.62%
Net Profit Margin	17.51%
Debt/Equity Ratio	0%

How did ALGN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

39.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ALGN ($275.04) is trading below our estimate of fair value ($450.79)

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 (30.7x) compared to the US Medical Equipment industry average (35.2x).

PE vs Market: ALGN is poor value based on its PE Ratio (30.7x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: ALGN is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: ALGN is overvalued based on its PB Ratio (5.9x) compared to the US Medical Equipment industry average (2.4x).

Future Growth

How is Align Technology forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALGN's forecast earnings growth (21.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ALGN's earnings (21.9% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: ALGN's revenue (19.2% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ALGN's revenue (19.2% 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 (21.2%)

Past Performance

How has Align Technology performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALGN has high quality earnings.

Growing Profit Margin: ALGN's current net profit margins (17.5%) are higher than last year (16.3%).

Past Earnings Growth Analysis

Earnings Trend: ALGN's earnings have grown significantly by 28.9% per year over the past 5 years.

Accelerating Growth: ALGN's earnings growth over the past year (54.1%) exceeds its 5-year average (28.9% per year).

Earnings vs Industry: ALGN earnings growth over the past year (54.1%) exceeded the Medical Equipment industry 14.5%.

Return on Equity

High ROE: ALGN's Return on Equity (19.3%) is considered low.

Financial Health

How is Align Technology's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALGN's short term assets ($2.5B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: ALGN's short term assets ($2.5B) exceed its long term liabilities ($412.9M).

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 Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ALGN has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure

CEO

Joe Hogan (64 yo)

6.92yrs

Tenure

US$21,591,400

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 Member of Board of Advisors at Vizzia Technologies,...

CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD21.59M) is above average for companies of similar size in the US market ($USD13.34M).

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

Leadership Team

Experienced Management: ALGN's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: ALGN's board of directors are seasoned and experienced ( 12.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31