(ALGN) Align Technology - NASDAQ
Sector: Healthcare | Industry: Medical Instruments & Supplies | Exchange: NASDAQ (USA) | Market Cap: 12.857m USD | Total Return: -5.3% in 12m
Avg Turnover: 170M
EPS Trend: 92.9%
Qual. Beats: 3
Rev. Trend: 92.3%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
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 (-943.8m) to EBITDA (909.9m): -1.04 < 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 69.87%; Δ -2.19% > 0.5%) |
| Asset Turnover: 65.97% > 50% (prev 65.23%; Δ 0.74% > 0%) |
| Interest Coverage Ratio: 10.68 > 6 (EBIT TTM 655.1m / Interest Expense TTM 61.3m) |
| 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: 0.11 (EBIT TTM 655.1m / Avg Total Assets 6.21b) |
| D: 1.92 (Book Value of Equity 4.15b / Total Liabilities 2.16b) |
| Altman-Z'' = 4.82 = AA |
| DSRI: 1.04 (Receivables 1.18b/1.10b, Revenue 4.10b/3.98b) |
| GMI: 1.03 (GM 69.87% / 67.68%) |
| 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 = -2.93 (Cap -4..+1) = A |
As of June 23, 2026, the stock is trading at USD 173.76 with a total of 1,250,371 shares traded. Over the past week, the price has changed by -0.62%, over one month by +6.20%, over three months by -3.93% and over the past year by -5.27%.
Current recommended Stop Loss: 160.80 (which is 7.5% or 1.8 ATR below the current price).
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 | 20.3% |
P/E Trailing = 30.2222
P/E Forward = 15.7978
P/S = 3.1391
P/B = 3.0985
P/EG = 0.9463
Revenue TTM = 4.10b USD
EBIT TTM = 655.1m USD
EBITDA TTM = 909.9m USD
Long Term Debt = 83.4m USD (estimated: total debt 116.0m - short term 32.6m)
Short Term Debt = 32.6m USD (from shortTermDebt, last quarter)
Debt = 116.0m USD (from shortLongTermDebtTotal, last quarter) (leases 116.0m already included)
Net Debt = -943.8m USD (calculated: Debt 116.0m - CCE 1.06b)
Enterprise Value = 11.9b USD (12.9b + Debt 116.0m - CCE 1.06b)
Interest Coverage Ratio = 10.68 (Ebit TTM 655.1m / Interest Expense TTM 61.3m)
EV/FCF = 17.36x (Enterprise Value 11.9b / FCF TTM 686.1m)
FCF Yield = 5.76% (FCF TTM 686.1m / Enterprise Value 11.9b)
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 = 1.89 (Enterprise Value 11.9b / Total Assets 6.31b)
Interest Expense / Debt = 52.85% (Interest Expense 61.3m / Debt 116.0m)
Taxrate = 27.59% (163.8m / 593.7m)
NOPAT = 474.3m (EBIT 655.1m * (1 - 27.59%))
Current Ratio = 1.39 (Total Current Assets 2.66b / Total Current Liabilities 1.91b)
Debt / Equity = 0.03 (Debt 116.0m / totalStockholderEquity, last quarter 4.15b)
Debt / EBITDA = -1.04 (Net Debt -943.8m / EBITDA 909.9m)
Debt / FCF = -1.38 (Net Debt -943.8m / 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 = 15.97% (EBIT 655.1m / Capital Employed (Equity 4.02b + L.T.Debt 83.4m))
RoIC = 11.20% (NOPAT 474.3m / Invested Capital 4.24b)
WACC = 10.31% (E(12.9b)/V(13.0b) * Re(10.40%) + (debt cost/tax rate unavailable))
Discount Rate = 10.40% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -2.49%
[DCF] Terminal Value 70.18% ; FCFF base≈664.0m ; Y1≈715.1m ; Y5≈871.5m
[DCF] Fair Price = 152.6 (EV 9.98b - Net Debt -943.8m = Equity 10.9b / Shares 71.6m; r=10.31% [WACC]; 5y FCF grow 8.78% → 2.50% )
EPS Correlation: 92.90 | EPS CAGR: 12.57% | SUE: 2.30 | # QB: 3
Revenue Correlation: 92.34 | Revenue CAGR: 2.61% | SUE: 0.88 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.60 | Chg30d=-0.62% | Revisions=-33% | Analysts=13
EPS next Quarter (2026-09-30): EPS=2.90 | Chg30d=+0.13% | Revisions=+43% | Analysts=13
EPS current Year (2026-12-31): EPS=11.36 | Chg30d=+0.02% | Revisions=+14% | GrowthEPS=+8.1% | GrowthRev=+3.7%
EPS next Year (2027-12-31): EPS=12.37 | Chg30d=+0.01% | Revisions=+14% | GrowthEPS=+8.9% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +43%