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Align Technology Inc ALGN

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Stock XNAS Rating as of
$311.42 −2.59 (0.82%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Align Earnings: New Equipment, Stable Demand, and Strong Volume Make for a Solid Quarter

Keonhee Kim

Narrow-moat Align Technology reported first-quarter results that were slightly higher than our expectations. Total sales were up 5.8% year over year thanks to strong systems and services performance as well as solid clear aligner volume. Management raised its full-year revenue growth outlook to 6%-8% from the midsingle digits. We think the updated guidance bakes in higher-than-expected services and new systems performance and slightly raised expectations for the clear aligner business. After adjusting our full-year expectations and accounting for time value of money, we've raised our fair value estimate to $320 per share from $316.

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Price vs Fair Value

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ALGN is trading at a 5% discount.
Price
$300.82
Fair Value
$765.00
Uncertainty
High
1-Star Price
$241.60
5-Star Price
$348.30
Economic Moat
Sdhchcp
Capital Allocation
Krgzntks

Bulls Say, Bears Say

Bulls

Invisalign is likely to win over new doctors and patients as adoption of clear aligners increases and chips away at wire and bracket market share.

Bears

Increasing competition in the clear aligner market could erode Invisalign’s market share over the long term.

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Trading Information

Previous Close Price
$314.01
Day Range
$297.86–326.41
52-Week Range
$176.35–411.84
Bid/Ask
$311.27 / $311.59
Market Cap
$23.38 Bil
Volume/Avg
1.3 Mil / 704,545

Key Statistics

Price/Earnings (Normalized)
36.49
Price/Sales
6.22
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
2.41%

Company Profile

Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the FDA in 1998, and it has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients’ teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans and iTero scans make up over half of these scans.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Mid Core
Total Number of Employees
21,610
Website
https://www.aligntech.com

Competitors

Valuation

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Metric
ALGN
XRAY
STMN
Price/Earnings (Normalized)
 36.4916.8647.61
Price/Book Value
 6.491.9411.90
Price/Sales
 6.221.659.07
Price/Cash Flow
 30.2714.0437.79
Price/Earnings
ALGN
XRAY
STMN

Financial Strength

Metric
ALGN
XRAY
STMN
Quick Ratio
 0.980.761.34
Current Ratio
 1.181.381.95
Interest Coverage
 —−1.1619.50
Quick Ratio
ALGN
XRAY
STMN

Profitability

Metric
ALGN
XRAY
STMN
Return on Assets (Normalized)
 10.84%3.62%13.05%
Return on Equity (Normalized)
 18.16%7.63%23.67%
Return on Invested Capital (Normalized)
 17.22%5.75%18.17%
Return on Assets
ALGN
XRAY
STMN
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