Align Technology Inc (ALGN)
Health Care · Health Care Supplies · US stock · S&P 500 component
$155.51
▲ +4.14 (2.74%)
Fair valueUndervalued
$185 +18.8% to fair value
$92fair band $157–$224$277
Day's range
$151.44 – $155.94
52-week range
$130.23 – $200.44
About Align Technology Inc
Align Technology makes the Invisalign system of clear aligners used to straighten teeth, along with digital scanners and software that dentists and orthodontists use to plan treatment. The company sells aligners and scanners to dental practices, which in turn treat patients. Revenue is earned from the number of aligner cases shipped and from sales of scanning equipment and related services. Its results depend on consumer spending on elective dental care.
Revenue for the last twelve months was $4.1 billion, and it grew by 2.6% a year over three years. The operating margin is 13.2%, and return on invested capital reached 13%. It does not pay a dividend. Its X-Ray Score is 61 out of 100.
Price chart
52-wk range $130.23 – $200.44Volume 1,159,666Daily, split-adjusted
Vitals
Market cap$11.1B
52-week range$130.23 – $200.44
Volume (last day)1,159,666
P/E (TTM)27.1
EBIT / EV yield5.5%
Free-cash-flow yield5.7%
Dividend yieldNo dividend
Revenue (TTM)$4.1B
Net income (TTM)$413M
Operating margin13.2%
Return on capital12.7%
Debt incl. leasesData missing
Cash & securities$1.1B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$185middle half of models $175 – $200
Undervalued
+18.8% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $156
Undervalued < $157Fair $157 – $224Overvalued > $224
P/E multiple
$168
P/B multiple
$235
P/S multiple
$208
EV/EBITDA multiple
$187
EV/EBIT multiple
$202
EV/revenue multiple
$200
10-year DCF, EBITDA exit
$188
5-year DCF, EBITDA exit
$185
10-year DCF, revenue exit
$188
5-year DCF, revenue exit
$187
10-year DCF, growth exit
$144
5-year DCF, growth exit
$133
Earnings power value
$175
Growth the price implies
14.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
76/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.5%
Free-cash-flow yield5.7%
Fair value vs price1.2×
Growth
Weak
41/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)2.6%
EPS growth (3y)7.0%
Growth consistency80%
Profitability
Fair
57/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital12.7%
Operating margin13.2%
Gross profitability43.9%
Financial health
Fair
68/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Interest coverNo interest cost
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
-1.8%
Mar '25
-1.6%
Jun '25
+1.8%
Sep '25
+5.3%
Dec '25
+6.2%
Mar '26
+4.3%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.1B, diluted EPS $1.51.
Compare with peers
COO Cooper Companies, Inc.46 WST West Pharmaceutical Se...45Other Health Care Supplies companies by X-Ray Score.
SWOT analysis: Align Technology Inc
Strengthsinside the company
- Free cash flow equals 5.7% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- The price is 19% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare ALGN with peers and sector
Medians of 59 Health Care peers and of 59 Health Care stocks in our universe.
Largest peers (X-Ray Score): LLY 62, JNJ 49, ABBV 41, UNH 58, MRK 33, TMO 34.
| Metric | ALGN | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 61 | 49 | 49 |
| Valuation | 76 | 52 | 52 |
| Growth | 41 | 48 | 48 |
| Profitability | 57 | 49 | 49 |
| Financial health | 68 | 48 | 48 |
| Dividends | – | 51 | 51 |
Sector leaders: highest X-Ray Score in Health Care
ALGN ranks #16 of 60 in Health Care by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for ALGN
Each factor is rated by where ALGN stands among the 60 Health Care stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 7 Good · 13 Average · 2 Bad of 22
Growth: 0 · 2 · 1
Profitability: 0 · 5 · 0
Financial strength: 1 · 2 · 0
Valuation: 2 · 3 · 0
Cash flow: 3 · 1 · 0
Efficiency: 1 · 0 · 1
| Factor | ALGN | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +2.6% | Average beats 34% | +5.5% | – | – |
| Revenue growth, last year | +0.9% | Bad beats 14% | +7.1% | +3.4% | ▼ Worse |
| EPS growth, 3 years a year | +7.0% | Average beats 56% | +5.0% | – | – |
| Profitability | |||||
| Gross margin | 68.0% | Average beats 63% | 65.0% | 70.1% | ≈ In line |
| Operating margin | 13.2% | Average beats 43% | 16.4% | 16.7% | ▼ Worse |
| Net margin | 10.0% | Average beats 49% | 11.1% | 10.5% | ≈ In line |
| Return on invested capital | 12.7% | Average beats 54% | 12.2% | – | – |
| Return on equity | 9.8% | Average beats 35% | 13.7% | 10.9% | ≈ In line |
| Financial strength | |||||
| Interest cover | 50.0x | Good beats 82% | 9.4x | – | – |
| Current ratio | 1.40 | Average beats 46% | 1.52 | 1.26 | ▲ Better |
| Piotroski F-score | 7 / 9 | Average beats 62% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 26.9x | Average beats 61% | 28.2x | 45.7x | ▲ Better |
| Price / book | 2.6x | Good beats 74% | 3.7x | 4.6x | ▲ Better |
| Price / sales | 2.7x | Average beats 63% | 3.7x | 4.4x | ▲ Better |
| EV / EBITDA | 12.5x | Good beats 83% | 17.6x | – | – |
| Free cash flow yield | 5.7% | Average beats 66% | 4.4% | 2.9% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 15.3% | Average beats 41% | 16.3% | 15.6% | ≈ In line |
| Cash from operations / net income | 1.83 | Good beats 72% | 1.61 | 1.57 | ▲ Better |
| Free cash flow growth, 3 years a year | +21.0% | Good beats 74% | +4.3% | – | – |
| Accruals (lower is better) | −5.3% | Good beats 74% | −3.9% | – | – |
| Efficiency | |||||
| Inventory turnover | 6.2x | Good beats 83% | 2.9x | 4.4x | ▲ Better |
| Days sales outstanding | 101 days | Bad beats 5% | 62 days | 85 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 7 Average · ● 1 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldAverage
Risk models
Altman Z''Good
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Good
Revenue growth (3y)Average
Growth consistencyBad
Balance sheet
Current ratioAverage
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginAverage
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 63/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $4.0B | $3.7B | $3.9B | $4.0B | $4.0B |
| Operating income | $976M | $643M | $643M | $608M | $546M |
| Net income | $772M | $362M | $445M | $421M | $410M |
| Operating cash flow | $1.2B | $569M | $786M | $738M | $593M |
| Operating margin | 24.7% | 17.2% | 16.7% | 15.2% | 13.5% |
| Free cash flow | $771M | $277M | $608M | $623M | $491M |
| Diluted EPS | $9.69 | $4.61 | $5.81 | $5.62 | $5.65 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
7 bullish · 1 neutral · 8 bearish
Weekly
Strongly bearish
2 bullish · 1 neutral · 9 bearish
Monthly
Strongly bearish
1 bullish · 1 neutral · 6 bearish
Moving averages (daily)
| SMA 10 | 147.4 | Bullish |
| EMA 10 | 148.8 | Bullish |
| SMA 20 | 145.4 | Bullish |
| EMA 20 | 147.8 | Bullish |
| SMA 50 | 152.5 | Bullish |
| EMA 50 | 152.6 | Bullish |
| SMA 100 | 163.7 | Bearish |
| EMA 100 | 158.9 | Bearish |
| SMA 200 | 169.3 | Bearish |
| EMA 200 | 163.9 | Bearish |
Oscillators (daily)
| RSI (14) | 62.00 | Neutral |
| MACD (12, 26) | -0.09 | Bearish |
| Momentum (12) | 9.94 | Bullish |
| Stochastic %K (14) | 97.60 | Bearish |
| Williams %R (14) | -2.40 | Bearish |
| CCI (20) | 203.8 | Bearish |
Pivot points (classic, last session)
S3 148.2 | S2 149.8 | S1 152.7 | Pivot 154.3 | R1 157.2 | R2 158.8 | R3 161.7 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold ALGN
| ETF | Share of the fund |
|---|---|
| CGMM Capital Group U.S. Small and Mid Cap | 1.15% |
| SPHB Invesco S&P 500 High Beta | 0.89% |
| DFAT DFA Investment Dimensions Group Inc. | 0.28% |
| VBR Vanguard Small-Cap Value | 0.25% |
| SCHM Schwab U.S. Mid-Cap | 0.22% |
| XLV Health Care Select Sector SPDR | 0.20% |
| RSP Invesco S&P 500 Equal Weight | 0.19% |
| VHT Vanguard Health Care | 0.19% |
The eight funds with the largest weight in ALGN among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
ALGN SEC filings
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Regulation FD disclosure
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.