(ALGN) Align Technology - Overview
Sector: Healthcare | Industry: Medical Instruments & Supplies | Exchange: NASDAQ (USA) | Market Cap: 11.372m USD | Total Return: -5.2% in 12m
Avg Turnover: 148M
EPS Trend: 92.9%
Qual. Beats: 3
Rev. Trend: 92.3%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Garp
Align Technology, Inc. (ALGN) is a medical device manufacturer specializing in digital orthodontics and restorative dentistry. The company operates through two primary segments: Clear Aligner, which produces the Invisalign system for various malocclusion complexities, and Imaging Systems and CAD/CAM Services, which provides iTero intraoral scanners and exocad design software.
The business model relies on a razor and blade strategy, where the placement of proprietary iTero scanners facilitates the high-volume sale of customized, single-use clear aligners. This integration of hardware and software creates high switching costs for dental practitioners within the Health Care Supplies sector. Align Technology maintains a significant competitive advantage through a massive database of 3D facial and tooth scans used to train its treatment-planning algorithms.
Investors can further evaluate the companys competitive positioning and valuation metrics by visiting ValueRay. Align Technology remains a dominant player in the global shift from traditional metal braces to digital, aesthetic orthodontic solutions.
- Teen and pediatric market penetration drives long-term clear aligner volume growth
- Consumer discretionary spending levels impact adoption of elective orthodontic procedures
- iTero scanner placement increases long-term ecosystem lock-in and service revenue
- International expansion and direct-to-consumer marketing costs pressure operating margins
- Competition from low-cost clear aligner alternatives threatens premium pricing power
| Net Income: 429.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 0.53 > 1.0 |
| NWC/Revenue: 18.30% < 20% (prev 10.33%; Δ 7.97% < -1%) |
| CFO/TA 0.11 > 3% & CFO 691.6m > Net Income 429.9m |
| Net Debt (-860.4m) to EBITDA (846.4m): -1.02 < 3 |
| Current Ratio: 1.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (71.6m) vs 12m ago -2.72% < -2% |
| Gross Margin: 67.68% > 18% (prev 0.70%; Δ 6.70k% > 0.5%) |
| Asset Turnover: 65.97% > 50% (prev 65.23%; Δ 0.74% > 0%) |
| Interest Coverage Ratio: 378.3 > 6 (EBITDA TTM 846.4m / Interest Expense TTM 1.56m) |
| A: 0.12 (Total Current Assets 2.66b - Total Current Liabilities 1.91b) / Total Assets 6.31b |
| B: 0.40 (Retained Earnings 2.55b / Total Assets 6.31b) |
| C: 0.10 (EBIT TTM 591.6m / Avg Total Assets 6.21b) |
| D: 1.21 (Book Value of Equity 2.62b / Total Liabilities 2.16b) |
| Altman-Z'' = 4.00 = AA |
| DSRI: 1.00 (Receivables 1.13b/1.10b, Revenue 4.10b/3.98b) |
| GMI: 1.03 (GM 67.68% / 69.87%) |
| AQI: 1.02 (AQ_t 0.39 / AQ_t-1 0.38) |
| SGI: 1.03 (Revenue 4.10b / 3.98b) |
| TATA: -0.04 (NI 429.9m - CFO 691.6m) / TA 6.31b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 163.61 with a total of 838,947 shares traded.
Over the past week, the price has changed by +4.04%,
over one month by -16.55%,
over three months by -9.74% and
over the past year by -5.21%.
Align Technology has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy ALGN.
- StrongBuy: 8
- Buy: 3
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 209.1 | 27.8% |
P/E Forward = 13.8504
P/S = 2.7764
P/B = 2.7141
P/EG = 0.8289
Revenue TTM = 4.10b USD
EBIT TTM = 591.6m USD
EBITDA TTM = 846.4m USD
Long Term Debt = unknown (none)
Short Term Debt = 31.9m USD (from shortTermDebt, last fiscal year)
Debt = 199.5m USD (from shortLongTermDebtTotal, last quarter) + Leases 116.0m
Net Debt = -860.4m USD (calculated: Debt 199.5m - CCE 1.06b)
Enterprise Value = 10.5b USD (11.4b + Debt 199.5m - CCE 1.06b)
Interest Coverage Ratio = 378.3 (Ebit TTM 591.6m / Interest Expense TTM 1.56m)
EV/FCF = 15.32x (Enterprise Value 10.5b / FCF TTM 686.1m)
FCF Yield = 6.53% (FCF TTM 686.1m / Enterprise Value 10.5b)
FCF Margin = 16.75% (FCF TTM 686.1m / Revenue TTM 4.10b)
Net Margin = 10.50% (Net Income TTM 429.9m / Revenue TTM 4.10b)
Gross Margin = 67.68% ((Revenue TTM 4.10b - Cost of Revenue TTM 1.32b) / Revenue TTM)
Gross Margin QoQ = 70.82% (prev 65.69%)
Tobins Q-Ratio = 1.66 (Enterprise Value 10.5b / Total Assets 6.31b)
Interest Expense / Debt = 0.78% (Interest Expense 1.56m / Debt 199.5m)
Taxrate = 24.26% (36.1m / 148.9m)
NOPAT = 448.1m (EBIT 591.6m * (1 - 24.26%))
Current Ratio = 1.39 (Total Current Assets 2.66b / Total Current Liabilities 1.91b)
Debt / Equity = 0.05 (Debt 199.5m / totalStockholderEquity, last quarter 4.15b)
Debt / EBITDA = -1.02 (Net Debt -860.4m / EBITDA 846.4m)
Debt / FCF = -1.25 (Net Debt -860.4m / FCF TTM 686.1m)
Total Stockholder Equity = 4.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.92% (Net Income 429.9m / Total Assets 6.31b)
RoE = 10.70% (Net Income TTM 429.9m / Total Stockholder Equity 4.02b)
RoCE = 13.42% (EBIT 591.6m / Capital Employed (Total Assets 6.31b - Current Liab 1.91b))
RoIC = 10.19% (NOPAT 448.1m / Invested Capital 4.40b)
WACC = 10.61% (E(11.4b)/V(11.6b) * Re(10.79%) + D(199.5m)/V(11.6b) * Rd(0.78%) * (1-Tc(0.24)))
Discount Rate = 10.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -2.49%
[DCF] Terminal Value 69.24% ; FCFF base≈664.0m ; Y1≈715.1m ; Y5≈871.5m
[DCF] Fair Price = 146.1 (EV 9.60b - Net Debt -860.4m = Equity 10.5b / Shares 71.6m; r=10.61% [WACC]; 5y FCF grow 8.78% → 2.50% )
EPS Correlation: 92.90 | EPS CAGR: 12.57% | SUE: 1.10 | # QB: 3
Revenue Correlation: 92.34 | Revenue CAGR: 2.61% | SUE: 0.88 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.61 | Chg30d=-6.31% | Revisions=-71% | Analysts=13
EPS next Quarter (2026-09-30): EPS=2.90 | Chg30d=-1.19% | Revisions=-54% | Analysts=13
EPS current Year (2026-12-31): EPS=11.36 | Chg30d=+0.70% | Revisions=+53% | GrowthEPS=+8.1% | GrowthRev=+3.7%
EPS next Year (2027-12-31): EPS=12.38 | Chg30d=+0.53% | Revisions=+41% | GrowthEPS=+8.9% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: -71%