ALGNALGN
US • —
$168.66
P/E
28.26
PEG
3.21
FCF Yield
—
Rev Growth YoY
+2.9% YoY
Gross Margin
68.6%
Health Score
8/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
Align Technology is a medical device company operating in the clear aligner and digital dentistry market. Its primary revenue-generating product is the Invisalign system, used for orthodontic treatment, along with associated intraoral scanners and software for dental professionals. The company is the dominant player in the clear aligner market globally, with a strong brand and extensive network of trained dental practitioners. Without available revenue or market capitalisation data, a precise assessment of financial scale is not possible, though its established market position suggests a large-cap tier. A defining characteristic is its first-mover advantage and proprietary treatment planning software, creating a competitive moat in the orthodontics industry.
Financial Health
Align Technology reports a gross margin of 68.6% and a net margin of 10.5%, with no prior-year comparison available for gross margin trends. The balance sheet is characterised by a Debt/Equity ratio of 0.0x, indicating no long-term debt, and a current ratio of 1.36x, which suggests adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 28.26x is at a premium to the sector average of 22x, pricing in continued high margins and market share.
- EARNINGS QUALITY — Earnings beat estimates in 3 of the last 4 quarters, which is a positive, not a risk, but the 1 miss could indicate some quarterly volatility.
- REVENUE DECELERATION — Revenue growth of 2.9% YoY is low for a premium valuation, and without QoQ data, any potential deceleration cannot be confirmed.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow data is not available, making it impossible to assess cash generation or sustainability of the current valuation.
- CONCENTRATION — The company relies heavily on the Invisalign brand and clear aligner market, creating single-segment revenue dependency....
Align Technology reports a gross margin of 68.6% and a net margin of 10.5%, with no prior-year comparison available for gross margin trends. The balance sheet is characterised by a Debt/Equity ratio of 0.0x, indicating no long-term debt, and a current ratio of 1.36x, which suggests adequate short-term liquidity. Free cash flow data is not provided, so the company's ability to generate excess cash relative to its operations cannot be confirmed. The strong gross margins and debt-free balance sheet provide significant financial flexibility for reinvestment or weathering economic downturns. Overall, the financial health appears solid, supported by high profitability and a conservative capital structure.
* VALUATION — P/E of 28.26x is at a premium to the sector average of 22x, pricing in continued high margins and market share. * EARNINGS QUALITY — Earnings beat estimates in 3 of the last 4 quarters, which is a positive, not a risk, but the 1 miss could indicate some quarterly volatility. * REVENUE DECELERATION — Revenue growth of 2.9% YoY is low for a premium valuation, and without QoQ data, any potential deceleration cannot be confirmed. * TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. * FCF / CASH BURN — Free cash flow data is not available, making it impossible to assess cash generation or sustainability of the current valuation. * CONCENTRATION — The company relies heavily on the Invisalign brand and clear aligner market, creating single-segment revenue dependency.
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