Align Tech (ALGN) AI Stock Analysis

• Market Cap: $9.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.57
• Revenue Growth: 0.56%
• EPS Growth: 0.43%
• Country: US
• Employees: 21,200
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Devices
• EPS (TTM): 2.49
• Shares Outstanding: 72,486,370
• 10 Day Avg. Volume: 1,343,310
• 30 Day Avg. Volume: 1,719,586
• PEG Ratio: -11.35
• Price to Book (P/B): 4.05
• Price to Sales (P/S): 3.90
• P/FCF Ratio: 25.07
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 16.34
• 1Y Price Target: $185.11
• Price Target Upside: 41.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• Price Target: $154.00 ▲(17.50% Upside)

Align Tech's overall stock score is driven by its strong financial performance and strategic stock repurchase plan, which are offset by weak technical indicators and a mixed earnings outlook. The company's moderate valuation and restructuring plans also contribute to a cautious investment stance.

Positive Factors

Strong Financial Position

Align Tech's robust financial health, characterized by low leverage and efficient cash flow management, supports its long-term stability and ability to invest in growth opportunities.

Innovative Product Portfolio

Align's focus on innovative products like Invisalign and iTero strengthens its competitive position in the orthodontics market, driving sustainable revenue growth.

Patent Protection Efforts

By enforcing its patents, Align protects its technological innovations, securing its market position and potential revenue streams from competitors.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining market share and could impact long-term growth if not addressed.

Economic Uncertainty

Economic uncertainties can affect consumer spending and demand for Align's products, posing risks to revenue stability and growth.

Restructuring Costs

Restructuring costs may strain financial resources and reflect underlying operational challenges, impacting short-term profitability and strategic focus.

Align Tech Business Overview & Revenue Model

Company Description

Align Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontists and general practitioner dentists, and restorative and aesthetic dentistry. It operates in two segments, Clear Aligner; and Scanners and Services. The Clear Aligner segment consists of comprehensive products, including Invisalign comprehensive treatment that addresses the orthodontic needs of teenage patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of seven and ten years, which is a mixture of primary/baby and permanent teeth. This segment's non-comprehensive products comprise Invisalign moderate, lite and express packages, and Invisalign go; and non-case products include retention products, Invisalign training fees, and sales of ancillary products, such as cleaning material, and adjusting tools used by dental professionals during the course of treatment. The Scanners and Services segment offers iTero scanner, a single hardware platform with software options for restorative or orthodontic procedures; restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons; and software for orthodontists for digital records storage, orthodontic diagnosis, and for the fabrication of printed models and retainers. This segment also provides computer-aided design and computer-aided manufacturing services; ancillary products, such as disposable sleeves for the wand; iTero model and dies; third party scanners and digital scans; Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; and TimeLapse technology, which allows doctors or practitioners to compare a patient's historic 3D scans to the present-day scan. The company sells its products in the United States, Switzerland, China, and internationally. Align Technology, Inc. was incorporated in 1997 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Align Technology generates revenue primarily through the sale of its Invisalign products and services, which include the clear aligners and associated treatment tools. The company earns significant income from orthodontic and dental professionals who purchase these products for their patients. Another key revenue stream comes from the iTero intraoral scanners, which are sold to dental practices to aid in the treatment process. Align also benefits from partnerships with dental professionals and practices, enabling it to expand its market reach and drive sales. Additionally, the company invests in research and development to innovate and maintain competitive advantage in the rapidly evolving dental technology market, which further contributes to its revenue generation.

Align Tech Financial Statement Overview

Summary

Align Tech maintains a strong financial position with robust profitability, stable revenue streams, and efficient cash flow management. The company's low leverage and effective equity utilization enhance its financial stability, while continued focus on operational efficiency supports its cash generation capacity.

Income Statement

Align Tech shows a consistent revenue stream with TTM revenue at $3.96 billion, though a slight decline from the previous year. Gross profit margin remains strong at approximately 69.8%, while the net profit margin is 11%. Despite a small drop in revenue, the company's profitability remains solid with stable EBIT and EBITDA margins.

Balance Sheet

The balance sheet is healthy with a low debt-to-equity ratio of 0.02, indicating minimal leverage. The equity ratio stands robustly at 62.9%, demonstrating strong financial stability. Return on equity is reasonable at 11.2%, reflecting effective use of equity.

Cash Flow

Align Tech exhibits solid cash flow management with a free cash flow of $678 million in the TTM, showing growth over previous periods. Operating cash flow to net income ratio is strong at 1.67, suggesting efficient earnings conversion to cash. The ratio of free cash flow to net income stands at 1.55, indicating healthy cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.96B	4.00B	3.86B	3.73B	3.95B	2.47B
Gross Profit	2.77B	2.80B	2.71B	2.63B	2.94B	1.76B
EBITDA	793.41M	816.80M	799.05M	779.84M	1.09B	480.71M
Net Income	437.61M	421.36M	445.05M	361.57M	772.02M	1.78B
Balance Sheet
Total Assets	6.22B	6.21B	6.08B	5.95B	5.94B	4.83B
Cash, Cash Equivalents and Short-Term Investments	901.16M	1.04B	972.74M	999.58M	1.17B	960.84M
Total Debt	123.02M	119.28M	126.62M	126.91M	125.38M	86.18M
Total Liabilities	2.31B	2.36B	2.45B	2.35B	2.32B	1.60B
Stockholders Equity	3.91B	3.85B	3.63B	3.60B	3.62B	3.23B
Cash Flow
Free Cash Flow	678.30M	622.65M	608.06M	276.83M	771.45M	507.26M
Operating Cash Flow	731.07M	738.23M	785.78M	568.73M	1.17B	662.17M
Investing Cash Flow	-119.60M	-254.91M	-195.94M	-213.32M	-563.43M	-231.51M
Financing Cash Flow	-495.50M	-355.72M	-598.34M	-501.69M	-458.33M	-30.81M

Align Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGN, the sentiment is Negative. The current price of 131.06 is below the 20-day moving average (MA) of 139.10, below the 50-day MA of 160.41, and below the 200-day MA of 184.89, indicating a bearish trend. The MACD of -6.62 indicates Negative momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGN.

Align Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZBH	79 Outperform	$20.00B	24.58	6.52%	0.95%	4.11%	-14.43%
SNN	78 Outperform	$16.35B	33.07	9.20%	1.99%	5.78%	61.52%
GMED	76 Outperform	$7.93B	22.67	8.62%	―	17.43%	775.48%
UFPT	73 Outperform	$1.54B	23.11	19.29%	―	40.98%	34.80%
ALGN	63 Neutral	$9.54B	22.19	11.41%	―	0.56%	0.43%
GKOS	52 Neutral	$4.75B	―	-12.98%	―	26.70%	48.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Align Tech Corporate Events

Align Tech Announces $200 Million Stock Repurchase Plan

On August 5, 2025, Align Technology announced its plan to repurchase $200 million of its common stock through open market transactions as part of its $1.0 billion stock repurchase program approved in April 2025. This move reflects the company’s confidence in its long-term strategy and market opportunities, aiming to enhance stockholder value despite challenging macroeconomic conditions. The repurchase will be funded with cash on hand and is expected to be completed by January 2026.