Align Technology Inc

Health Care
Industrial Specialties
www.aligntech.com

Earnings Score
Moat Score

Market Cap $17.77B
PE 40
Debt $NaN
Cash $1.04B
EV $NaN
FCF $373.02M

Earnings

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Sales & Net Margins

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Earnings	$441.57M
EBIT	$639.73M
ROE	11%
ROA	10%
FCF	$373.02M
Equity	$3.94B
Growth Stability	36%
PE	40.25
PEG	-1.65
PB	4.51
P/FCF	47.64
P/S	4.49
Price/Cash	0.06
Net Margins	11%
Gross Margins	70%
Op. Margins	16%
Earnings CAGR	14%
Sales Growth YoY	2%
Sales Growth QoQ	-5%
Sales CAGR	21%
FCF CAGR	15%
Equity CAGR	23%
Earnings Stability	0.25
Earnings Growth YoY	-4%

Earnings Growth QoQ	20%
Earnings CAGR 5Y	-24%
Sales CAGR 5Y	13%
FCF CAGR 5Y	-4%
Equity CAGR 5Y	11%
Earnings CAGR 3Y	-0%
Sales CAGR 3Y	-0%
FCF CAGR 3Y	-4%
Equity CAGR 3Y	2%
Market Cap	$17.77B
Revenue	$3.96B
Assets	$6.37B
Cash	$1.04B
Shares Outstanding	74.74M
Earnings Score	13%
Moat Score	91%
Working Capital	533.77M
Current Ratio	1.26
Gross Profit	$2.77B
Shares Growth 3y	-2%
Equity Growth QoQ	5%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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Align is the leading manufacturer of clear dental aligners globally, having pioneered the technology with the introduction of its Invisalign branded aligners in 1998. Since then, Invisalign has become a household name, having treated over 10 million patients with malocclusion (misaligned teeth) through orthodontist and dentist-guided treatment plans. The company maintains dominant market share of clear aligners, despite the introduction of direct-to-consumer competitors upon the expiration of key patents that began in 2017. Align also manufactures intraoral scanners (iTero), used for orthodontic treatment and restorative dental procedures (digital models for crowns, veneers, and implants).

SEC Filings

Direct access to Align Technology Inc (ALGN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Align Technology Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Align Technology Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 14%

Stability 25%

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Align Technology Inc Discounted Cash Flow

Fully customizable DCF calculator online for Align Technology Inc.

Years

Calculation mode

= $11B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$373M	$430M	$495M	$570M	$657M	$756M	$871M	$1B	$1.2B	$1.3B	$1.5B	$15B
DCF		$391M	$409M	$428M	$449M	$470M	$492M	$515M	$539M	$565M	$591M	$5.9B
Value	$11B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	19%	17%	18%	16%	20%	18%	72%	20%	10%	12%	11%
ROA	-	16%	18%	20%	23%	22%	8%	17%	11%	11%	10%
ROE	-	17%	19%	20%	32%	33%	55%	21%	10%	12%	11%

Good Net Margins (10.57%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	88%	36%	46%	36%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (36%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	11%	28%	36%	33%	22%	3%	60%	-6%	3%	13%
Earnings YoY growth	-	-1%	32%	22%	73%	11%	301%	-57%	-53%	23%	-24%
Equity YoY growth	-	13%	17%	16%	9%	7%	140%	12%	-1%	1%	11%
FCF YoY growth	-	-9%	-4%	37%	36%	80%	-15%	52%	-64%	120%	-4%