ALGNNEUTRAL

ALGN Return on Equity (ROE) Analysis

10.1%

Higher than 48% of Healthcare sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

Align Technology’s Return on Equity (ROE) of 10.1% means that for every dollar of shareholders’ equity, the company generated about 10.1 cents in profit last year – a measure of how efficiently it uses investor capital.

Sector Performance

48th percentile

ALGN

10.1%

Sector Median

11.3%

Sector Avg

72.2%

📊

Deep Analysis

This sits slightly below the healthcare sector median of 11.1%, placing ALGN in the 47th percentile of its peer group, indicating performance that is near the middle but marginally weaker than the typical competitor. The trend data for this metric are not available, with both the year-over-year and quarter-over-quarter changes listed as N/A, so no direction can be inferred from recent movements. Because the current ROE is close to the sector median but lacks a trend to suggest improvement or deterioration, the risk profile leans neutral – neither a standout opportunity nor a clear warning. The metric neither supports nor contradicts the overall NEUTRAL verdict; it aligns with a view that Align Technology is performing in line with peers without a strong competitive edge or a material shortfall.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ALGN?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ALGN's Return on Equity (ROE) compare to its sector?

ALGN's Return on Equity (ROE) of 10.1% compares to a Healthcare sector median of 11.3%, placing it in the 48th percentile.

Who are ALGN's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ABT (12.5%), TMO (13.5%), TECH (9.0%), VEEV (13.9%), DGX (14.6%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.