Align Technology Inc
Orthopedic, Prosthetic & Surgical Appliances & Supplies
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90% of the market.
It is a $9.95B healthcare company. Revenue grew 4.4% over the last year, and it keeps 10¢ of every dollar of sales as profit. It trades at 24.5× earnings — near the lowest of its own history.
- Website
- aligntech.com
- Location
- Tempe, AZ
- Employees
- 20 435
- Sector
- Healthcare
- Founded
- 1997
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, quality and moat; Growth and Profitability lag behind.
Valuation85
- P/E vs own history4th pct · 25/25
- FCF yield6.4% · 20/25
- P/S2.4x · 20/25
- EV/EBITDA11.3x · 20/25
Growth31
- Revenue CAGR0.5% · 6/25
- Net income CAGR-14.6% · 0/25
- EPS CAGR ~5Y-24.1% · 0/25
- Fwd implied growth94.9% · 25/25
Profitability49
- ROIC13.9% · 12/25
- ROE10.1% · 12/25
- Net margin10.0% · 13/25
- Operating margin13.2% · 12/25
Health62
- Altman Z3.94 · 25/25
- Current ratio1.40 · 12/25
- Interest coverage38.9x · 25/25
- Net cash / debtn/a · 0/25
Quality92
- Piotroski F7/9 · 22/25
- Beneish M-2.53 · 25/25
- FCF conversion153% · 25/25
- Margin stabilityσ 5.4% · 20/25
Moat93
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin71.9% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 9.7% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2023AcquisitionIt was announced Align Technology had acquired the Vienna-headquartered 3D printing technology…
- FY2020FinancialBest year on record$1.78B net income
- 2020AcquisitionAlign Technology announced that it has signed a definitive agreement to acquire exocad Global…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$1.08B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2016MilestoneThe company's sales reached $1 billion for the first time in 2016 and its products were being used in about 8% of…
- 2011AcquisitionAlign acquired the Israeli company Cadent for $190 million
- Jan 26, 2001IPOAlign Technology went public on January 26, 2001, on the Nasdaq Stock Market
- 1998MilestoneAlign received FDA clearance to market the Invisalign system in 1998
- 1997FoundedAlign Technology was founded in 1997 by Zia Chishti and Kelsey Wirth, classmates at Stanford Graduate School of Business
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (69.0%)
- Strong cash conversion — FCF is 15.3% of revenue
- Interest covered 38.9× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist
- Altman Z-Score 3.94 — low bankruptcy-risk zone
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+4.4% YoY
- Profitable — makes more than it spends$414M TTM
- Profit growing — earnings are higher than last year+7.0% YoY
- Generates cash — cash left after running and investing$634M TTM
- Debt under control — could handle its obligationscurrent ratio 1.40
- Established company — not a micro-cap — lower blow-up risk$9.95B market cap
- Not printing shares — share count not ballooning — you keep your slice-8.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 3.9 — safe
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 24.5
Peer comparisonAlign Technology Inc vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| ALGN this company | $9.9B | 24.5 | +4.4% | 10.0% | Strong |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: ALGN vs LLY · ALGN vs JNJ · ALGN vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/ALGN
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of ALGN on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $140.02 · market cap $9.95B.