Align Technology logged a -3.9% change during today's afternoon session, and is now trading at a price of $220.6 per share.
Align Technology returned losses of -13.7% last year, with its stock price reaching a high of $335.4 and a low of $176.34. Over the same period, the stock underperformed the S&P 500 index by -47.2%. AThe company's 50-day average price was $233.33. 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. Based in Tempe, AZ, the Large-Cap Health Care company has 21,805 full time employees. Align Technology has not offered a dividend during the last year.
Wider Gross Margins Than the Industry Average of 41.35%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,966 | $2,407 | $2,472 | $3,953 | $3,735 | $3,862 |
| Gross Margins | 74% | 72% | 71% | 74% | 71% | 70% |
| Net Margins | 20% | 18% | 72% | 20% | 10% | 12% |
| Net Income (M) | $400 | $443 | $1,776 | $772 | $362 | $445 |
| Net Interest Expense (M) | $9 | $12 | $3 | $3 | $5 | $17 |
| Depreciation & Amort. (M) | $55 | $79 | $94 | $109 | $126 | $142 |
| Diluted Shares (M) | 81 | 80 | 79 | 80 | 78 | 77 |
| Earnings Per Share | $4.92 | $5.53 | $22.41 | $9.69 | $4.61 | $5.81 |
| EPS Growth | n/a | 12.4% | 305.24% | -56.76% | -52.43% | 26.03% |
| Avg. Price | $294.49 | $249.39 | $305.72 | $617.52 | $391.45 | $220.8 |
| P/E Ratio | 58.9 | 44.77 | 13.56 | 63.14 | 84.73 | 37.94 |
| Free Cash Flow (M) | $331 | $598 | $507 | $771 | $277 | $608 |
| CAPEX (M) | $223 | $150 | $155 | $401 | $292 | $178 |
| Current Ratio | 1.88 | 1.68 | 1.4 | 1.3 | 1.26 | 1.18 |
Align Technology has rapidly growing revenues and a flat capital expenditure trend and generally positive cash flows. Additionally, the company's financial statements display wider gross margins than its peer group and positive EPS growth. Furthermore, Align Technology has just enough current assets to cover current liabilities, as shown by its current ratio of 1.18.
Align Technology's Valuation Is in Line With Its Sector Averages:
Align Technology has a trailing twelve month P/E ratio of 39.7, compared to an average of 26.07 for the Health Care sector. Based on its EPS guidance of $10.49, the company has a forward P/E ratio of 22.2. The 11.4% compound average growth rate of Align Technology's historical and projected earnings per share yields a PEG ratio of 3.47. This suggests that these shares are overvalued. Furthermore, Align Technology is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.38 is higher than the sector average of 3.53. The company's shares are currently trading 180.2% below their Graham number.
Align Technology Has an Average Rating of Buy:
The 12 analysts following Align Technology have set target prices ranging from $215.0 to $340.0 per share, for an average of $279.68 with a buy rating. The company is trading -21.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Align Technology has an average amount of shares sold short because 5.3% of the company's shares are sold short. Institutions own 88.6% of the company's shares, and the insider ownership rate stands at 6.6%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $1,869,095,760.
