Align Tech (ALGN) AI Stock Analysis

• Market Cap: $10.18B
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.60
• Revenue Growth: 0.56%
• EPS Growth: 0.43%
• Country: US
• Employees: 21,200
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Devices
• EPS (TTM): 2.49
• Shares Outstanding: 72,486,370
• 10 Day Avg. Volume: 3,839,746
• 30 Day Avg. Volume: 1,823,868
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 16.99
• 1Y Price Target: $188.45
• Price Target Upside: 29.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 64 Neutral
• Price Target: $147.00 ▲(0.86% Upside)

Align Tech's overall stock score is driven by strong financial health and positive corporate actions, such as stock repurchases, but is tempered by bearish technical indicators and challenges highlighted in the earnings call. Economic uncertainties and restructuring efforts present additional risks.

Positive Factors

Growth Potential

In almost any situation, ALGN is undervalued vs. its current growth potential.

Strategic Initiatives

Steady adoption of the Lumina platform, incremental gains in AI-driven diagnostics and visualization tools, and gradual expansion in emerging markets like the UAE and Taiwan are expected.

Valuation

The stock is trading at new valuation lows, despite relatively stable end-markets and unchanged long-term growth potential.

Negative Factors

Earnings

Second-quarter sales/EPS were below the Street, and revenue guidance was lowered, leading to a significant drop in stock value.

Macroeconomic Factors

The biggest risk to the stock remains macroeconomic factors, which could worsen in the second half of the year.

Market Dynamics

The clear aligner market is attractive but cyclical, and traditional orthodontics are showing market resilience against aligners.

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	763.32M	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: 145.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 145.74 is below the 20-day moving average (MA) of 168.71, below the 50-day MA of 180.35, and below the 200-day MA of 193.63, indicating a bearish trend. The MACD of -14.42 indicates Positive momentum. The RSI at 37.03 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 is Neutral, 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
STE	81 Outperform	$24.01B	36.96	9.73%	0.94%	2.47%	63.68%
GMED	78 Outperform	$8.36B	23.88	8.62%	―	17.43%	775.48%
PODD	77 Outperform	$21.80B	94.23	19.18%	―	25.99%	-40.46%
SNN	76 Outperform	$15.76B	31.81	9.20%	2.07%	6.28%	61.96%
ZBH	74 Outperform	$20.17B	24.79	6.52%	0.93%	4.11%	-14.43%
ALGN	64 Neutral	$10.18B	23.70	11.41%	―	0.56%	0.43%
Sector *	51 Neutral	$7.42B	-0.36	-40.86%	2.27%	22.89%	-2.16%

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.

The most recent analyst rating on (ALGN) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on Align Tech stock, see the ALGN Stock Forecast page.

Align Tech Approves Key Proposals at Annual Meeting

On May 21, 2025, Align Technology, Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were approved. These included an amendment to the 2005 Incentive Plan to increase authorized shares, and the replacement of supermajority provisions with simple majority vote requirements in the company’s Certificate of Incorporation. The meeting also ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to impact Align Technology’s governance structure and operational flexibility, potentially influencing shareholder engagement and corporate strategy.

The most recent analyst rating on (ALGN) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on Align Tech stock, see the ALGN Stock Forecast page.