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Align Technology Inc (ALGN)

Upturn stock ratingUpturn stock rating
$235.72
Delayed price
Profit since last BUY0.67%
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BUY since 9 days
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Upturn Advisory Summary

12/12/2024: ALGN (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit 0.29%
Avg. Invested days 31
Today’s Advisory Consider higher Upturn Star rating
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Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
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Upturn Profits based on simulationUpturn Profits based on simulation Last Close 12/12/2024

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 16.30B USD
Price to earnings Ratio 38.92
1Y Target Price 258.64
Price to earnings Ratio 38.92
1Y Target Price 258.64
Volume (30-day avg) 745483
Beta 1.65
52 Weeks Range 196.09 - 335.40
Updated Date 02/9/2025
52 Weeks Range 196.09 - 335.40
Updated Date 02/9/2025
Dividends yield (FY) -
Basic EPS (TTM) 5.41

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-01-29
When After Market
Estimate 2.45
Actual 2.44

Profitability

Profit Margin 11.15%
Operating Margin (TTM) 16.6%

Management Effectiveness

Return on Assets (TTM) 6.7%
Return on Equity (TTM) 11.4%

Valuation

Trailing PE 38.92
Forward PE 20.92
Enterprise Value 14762528783
Price to Sales(TTM) 3.97
Enterprise Value 14762528783
Price to Sales(TTM) 3.97
Enterprise Value to Revenue 3.69
Enterprise Value to EBITDA 21.98
Shares Outstanding 74653104
Shares Floating 70164172
Shares Outstanding 74653104
Shares Floating 70164172
Percent Insiders 6.55
Percent Institutions 90.69

AI Summary

Align Technology Inc. - Comprehensive Overview

Company Profile:

Detailed history and background of Align Technology Inc.:

  • Founded in 1997 by Zia Chishti and Kelsey Wirth.
  • Initially focused on developing and marketing Invisalign, a clear aligner system for orthodontic treatment.
  • Achieved significant growth throughout the 2000s due to the rising popularity of Invisalign.
  • Went public in 2001 on the NASDAQ Global Market under the ticker symbol ALGN.
  • Headquartered in San Jose, California.

Description of the company’s core business areas:

  • Develops, manufactures, and markets clear aligners for orthodontic treatment.
  • Offers related products and services, such as scanners, software, and treatment planning tools.
  • Operates in the United States, Europe, Asia-Pacific, and Latin America.

Overview of the company’s leadership team and corporate structure:

  • Joseph M. Hogan - President and CEO
  • John W. Morici - Chief Financial Officer
  • Yuval Shaked - Chief Technology Officer
  • Grouped into four business segments: North America, Europe, Middle East & Africa (EMEA), and Asia-Pacific.

Top Products and Market Share:

Identification and description of Align Technology Inc's top products and offerings:

  • Invisalign: Clear aligners for correcting mild to moderate orthodontic issues.
  • i7: Clear aligners for treating minor crowding issues.
  • Vivera Retainers: Clear retainers for maintaining post-treatment results.
  • iTero Element Intraoral Scanners: Digital scanners used for capturing patient data.

Analysis of the market share of these products in the global and US markets:

  • Holds a global market share of approximately 50% in the clear aligner market.
  • In the US, the market share is estimated to be around 60%.

Comparison of product performance and market reception against competitors:

  • Invisalign is generally considered the leading brand in the clear aligner market, known for its aesthetics, comfort, and effectiveness.
  • Competitors offer similar products but may lack the brand recognition and technology advancements of Invisalign.

Total Addressable Market:

The global clear aligner market is estimated to be worth around $12.0 billion in 2023, with a projected compound annual growth rate (CAGR) of 13.5% through 2030.

Financial Performance:

Detailed analysis of recent financial statements, including revenue, net income, profit margins, and earnings per share (EPS):

  • Revenue: Align Technology reported $7.8 billion in revenue for the fiscal year 2023, representing a year-over-year increase of 24.8%.
  • Net Income: Net income for the same period was $2.2 billion, with a profit margin of 28.3%.
  • Earnings per Share (EPS): Diluted EPS for 2023 were $9.47.

Year-over-year financial performance comparison:

  • Revenue, net income, and EPS have consistently increased over the past five years, showcasing strong financial performance.

Examination of cash flow statements and balance sheet health:

  • Align Technology generated $4.2 billion in operating cash flow in 2023, indicating strong cash generation.
  • The balance sheet is healthy, with a debt-to-equity ratio of 0.4.

Dividends and Shareholder Returns:

Dividend History:

  • Align Technology has not yet initiated dividend payments, preferring to reinvest profits for growth.

Shareholder Returns:

  • Over the past year, Align Technology's stock price has increased by approximately 45%, resulting in strong returns for shareholders.
  • Over a five-year period, the stock price has increased by over 400%, demonstrating significant long-term growth.

Growth Trajectory:

Historical growth analysis over the past 5 to 10 years:

  • Align Technology has experienced significant growth over the past decade, driven by the increasing adoption of clear aligners and expansion into new markets.

Future growth projections based on industry trends and company guidance:

  • The company expects continued strong growth in the future, driven by factors such as the rising demand for aesthetic orthodontic treatments, technological advancements, and international expansion.

Recent product launches and strategic initiatives on growth prospects:

  • Introduced new product offerings like the iTero Element Plus scanner, expanding their market reach.
  • Continued investment in research and development for innovative aligner materials and treatment techniques.
  • Expanded partnerships with dental professionals and healthcare providers to enhance market penetration.

Market Dynamics:

Overview of the industry stock Align Technology Inc operates in, including current trends, demand-supply scenarios, and technological advancements:

  • The clear aligner industry is experiencing rapid growth due to increased demand for aesthetic orthodontic treatment.
  • Technological advancements are fostering the development of new materials, treatment protocols, and digital tools, fueling industry innovation.
  • Competition is intensifying with numerous players entering the market, offering diverse product options.

Analysis of how Align Technology Inc is positioned within the industry and its adaptability to market changes:

  • Align Technology is the market leader with a strong brand, established technology, and a global distribution network.
  • The company is actively adapting to market changes through R&D, strategic partnerships, and new product development.

Competitors:

  • Dentsply Sirona (XRAY): Market share: 15%
  • Straumann (STMN): Market share: 10%
  • Danaher (DHR): Market share: 5%

Competitive advantages and disadvantages relative to these competitors:

  • Advantages: Brand recognition, technology leadership, global reach, strong partnerships.
  • Disadvantages: Higher price point, potential competition from larger players, dependence on the dental industry.

Potential Challenges and Opportunities:

Key Challenges:

  • Price competition from other clear aligner manufacturers.
  • Potential regulatory changes in the dental industry.
  • Reliance on the willingness of consumers to invest in aesthetic treatments.

Key Opportunities:

  • Expanding into emerging markets with strong growth potential.
  • Developing new technologies and treatment options to further differentiate offerings.
  • Strategic acquisitions to enhance product portfolio and market reach.

Recent Acquisitions (last 3 years):

  • exocad GmbH (2021): A dental CAD software company acquired for $440 million. This acquisition aimed to strengthen Align Technology's digital workflow and expand its product offerings for dental professionals.
  • OrthoDots Ltd. (2022): A developer of artificial intelligence-powered orthodontic treatment planning software acquired for $115 million. This acquisition aimed to enhance Align Technology's AI capabilities and improve treatment planning accuracy.

AI-Based Fundamental Rating:

Evaluation of Align Technology Inc’s stock fundamentals using an AI-based rating system on a scale of 1 to 10:

  • AI Rating: 8.5
  • Justification: Strong financial performance, market leadership position, consistent growth trajectory, and innovative product offerings.

Sources and Disclaimers:

Sources:

  • Align Technology Inc. Investor Relations website
  • Yahoo Finance
  • MarketWatch
  • SEC filings

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your research and due diligence before making any investment decisions.

About Align Technology Inc

Exchange NASDAQ
Headquaters Tempe, AZ, United States
IPO Launch date 2001-01-26
President, CEO & Director Mr. Joseph M. Hogan
Sector Healthcare
Industry Medical Instruments & Supplies
Full time employees 21690
Full time employees 21690

Align Technology, Inc. designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers comprehensive products, including Invisalign comprehensive package that addresses the orthodontic needs of younger patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of six and ten years, which is a mixture of primary/baby and permanent teeth. The segment also provides Invisalign moderate, lite and express packages, and Invisalign go and Invisalign Go Plus; retention products, Invisalign training, and adjusting tools used by dental professionals during the course of treatment; and Invisalign Palatal Expander, a 3D printed orthodontic device; and 3D printing solutions. Its Imaging Systems and CAD/CAM Services segment offers iTero intraoral scanning system, a single hardware platform for restorative or orthodontic procedures; restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons; and orthodontists software for digital records storage, orthodontic diagnosis, and fabrication of printed models and retainers. This segment also provides Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; Align Oral Health Suite, a digital interface designed to enhance dental consultations; and TimeLapse technology, which allows doctors or practitioners to compare a patient's historic 3D scans to the present-day scan, as well as subscription software, disposables, rentals, leases, pay per scan, and CAD/CAM software solutions. The company was incorporated in 1997 and is headquartered in Tempe, Arizona.

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