Align Technology Inc
Exchange: NASDAQSector: HealthcareIndustry: Medical Devices
Align Technology designs and manufactures the Invisalign ® System, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for over 281.4 thousand doctor customers and are key to accessing Align’s 600 million consumer market opportunity worldwide. Over the past 28 years, Align has helped doctors treat over 20.1 million patients with the Invisalign System and is driving the evolution in digital dentistry through the Align™ Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners.
Did you know?
A large-cap company with a $12.2B market cap.
Current Price
$170.60
-1.23%GoodMoat Value
$156.14
8.5% overvaluedProfile
Valuation (TTM)
Market Cap$12.24B
P/E29.83
EV$11.96B
P/B3.02
Shares Out71.75M
P/Sales3.03
Revenue$4.03B
EV/EBITDA13.02
Align Technology Inc (ALGN) Stock Analysis
GoodMoat Analysis
Align Technology, maker of Invisalign clear aligners, shows a moderate moat but faces a valuation and quality mismatch. The stock trades above its GoodMoat target price, and its current financial metrics do not meet the high-quality thresholds required for a favourable value investing profile.
Read full analysis
Align Technology operates in the medical devices sector, primarily known for its Invisalign system of clear orthodontic aligners. Applying the GoodMoat framework, the company likely possesses a moat based on criteria like brand strength, proprietary technology, and switching costs for orthodontists, which would warrant a Moat Score of 5 or higher, passing the initial gate. However, the Quality Indicators present a challenge. Key metrics like an ROE of 10.1% and a profit margin of 10.2% fall short of the high-quality thresholds (e.g., ROIC >15-20%, high FCF margins). Revenue growth of 5.3% YoY is modest, and the FCF Yield of 3.8% suggests limited free cash flow generation relative to its market cap. The current P/E of 31.5x appears elevated for this growth profile. The stock price of $180.27 is above the provided GoodMoat Target of $156.14, indicating a negative or marginal margin of safety. According to the Decision Framework, while the business may pass the Moat gate, the combination of full valuation, modest growth, and quality metrics that do not meet 'High Quality' standards suggests an analysis would proceed 'with caution' at best. The valuation does not provide a clear margin of safety for a value-oriented investor. Analysis based on data as of 2024-05-15.
Market Cap$12.24B
Current Price$170.60
P/E Ratio29.83
Forward P/E—
PEG Ratio0.85
EPS$5.65
Book Value$56.43
P/B Ratio3.02
ALGN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -3.2% FCF growth (CAGR)
Cash vs Debt
Net Cash: 1.0B
Revenue
2.4B
FY19
2.5B
FY20
4.0B
FY21
3.7B
FY22
3.9B
FY23
4.0B
FY24
4.0B
FY25
Net Income
443M
FY19
1.8B
FY20
772M
FY21
362M
FY22
445M
FY23
421M
FY24
410M
FY25
ALGN 52-Week Range
$124.88
$207.19
50-Day MA: $176.89200-Day MA: $159.42
Did you know?
Profit margin stands at 10.2%.
Align Technology Inc (ALGN) Financial Summary
Align Technology Inc (ALGN) is a Healthcare company in the Medical Devices industry, listed on NASDAQ. The stock currently trades at $170.60 with a market capitalization of $12.24B.
Key valuation metrics include a P/E ratio of 29.83, price-to-book ratio of 3.02, and EPS of $5.65. The company reports a profit margin of 10.2% and return on equity of 10.1%.
ALGN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $12.24B |
| P/E Ratio | 29.83 |
| EPS | $5.65 |
| P/B Ratio | 3.02 |
| P/S Ratio | 3.03 |
| EV/EBITDA | 13.02 |
| Profit Margin | 10.2% |
| Return on Equity | 10.1% |
| Debt/Equity | 0.02 |
ALGN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.41B | $442.78M |
| FY20 | $2.47B | $1.78B |
| FY21 | $3.95B | $772.02M |
| FY22 | $3.73B | $361.57M |
| FY23 | $3.86B | $445.05M |
| FY24 | $4.00B | $421.36M |
| FY25 | $4.03B | $410.35M |
Align Technology Inc (ALGN) Valuation
Based on GoodMoat's DCF model, Align Technology Inc has a fair value estimate of $156.14. At the current price of $170.60, the stock appears 9.3% overvalued relative to our intrinsic value estimate.
ALGN Quality Indicators
Align Technology Inc maintains a profit margin of 10.2% and an operating margin of 13.5%. Return on equity stands at 10.1%. The current ratio is 1.36. Debt-to-equity ratio is 0.02.
About Align Technology Inc
Align Technology designs and manufactures the Invisalign ® System, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for over 281.4 thousand doctor customers and are key to accessing Align’s 600 million consumer market opportunity worldwide. Over the past 28 years, Align has helped doctors treat over 20.1 million patients with the Invisalign System and is driving the evolution in digital dentistry through the Align™ Digital Platform, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners.
ALGN Free Cash Flow
Align Technology Inc generated $490.78M in trailing twelve-month free cash flow, representing an FCF yield of 4.01%. This moderate FCF yield indicates reasonable cash generation.
ALGN Shares Outstanding
Align Technology Inc has 0.07 billion shares outstanding at a share price of $170.60, giving it a market capitalization of $12.24B.
ALGN Recent Insider Trades
Recent insider transactions at Align Technology Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Morici John (EVP, CHIEF FINANCIAL OFFICER) | SELL | 7,969 | $1.51M |