Align Tech (ALGN) AI Stock Analysis

• Market Cap: $10.04B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.45
• Revenue Growth: 0.56%
• EPS Growth: -12.05%
• Country: US
• Employees: 21,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.61
• Shares Outstanding: 72,486,370
• 10 Day Avg. Volume: 1,467,824
• 30 Day Avg. Volume: 1,292,334
• 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: 0.81
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 11.82
• 1Y Price Target: $171.33
• Price Target Upside: 23.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $155.00 ▲(11.89% Upside)

Align Tech's strong financial performance and positive earnings call insights are offset by valuation concerns and technical resistance. The company's strategic focus on growth and operational realignment is promising, but economic uncertainties and competitive pressures remain challenges.

Positive Factors

Revenue Growth

Sustained growth in Clear Aligner volumes indicates strong market demand and effective product positioning, supporting long-term revenue expansion.

Product Innovation

Continuous innovation in digital solutions enhances Align's competitive edge and strengthens its market position in orthodontics.

Cash Flow Management

Robust cash flow management ensures Align can invest in growth opportunities and maintain financial flexibility, supporting long-term stability.

Negative Factors

North America Retail Challenges

Challenges in the North American retail channel may hinder growth, impacting revenue and market penetration in a key region.

Systems and Services Revenue Decline

Declining Systems and Services revenue suggests potential weaknesses in product sales, which could affect overall profitability and growth.

Operating Margin Decline

A decline in operating margins indicates cost pressures and may affect profitability, challenging Align's ability to sustain its financial performance.

Align Tech Business Overview & Revenue Model

Company Description

Align Technology, Inc. is a global medical device company that specializes in the design, manufacture, and marketing of innovative products in the orthodontics and dentistry sectors. The company is best known for its Invisalign clear aligner system, which offers a discreet alternative to traditional metal braces for teeth straightening. In addition to Invisalign, Align Tech also provides the iTero intraoral scanner and other digital tools that facilitate dental treatment planning and patient engagement, thereby enhancing the overall orthodontic experience.

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 shows strong revenue growth and profitability with a robust balance sheet. However, challenges in cash flow growth and slight margin compression need attention.

Income Statement

Align Tech demonstrates strong revenue growth with a TTM growth rate of 44.9%, indicating robust demand for its products. The company maintains healthy profitability margins, with a gross profit margin of 69.8% and a net profit margin of 11.0% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting increased operational costs or pricing pressures.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.031, indicating prudent financial management and low leverage. The return on equity is stable at 11.3%, reflecting efficient use of shareholder funds. The equity ratio of 63.5% underscores a strong capital structure with significant equity backing.

Cash Flow

Cash flow metrics show mixed results. The free cash flow to net income ratio is high at 92.8%, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate is negative at -6.7%, suggesting potential challenges in cash generation. The operating cash flow to net income ratio is moderate at 36.6%, pointing to a need for improved cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.98B	4.00B	3.86B	3.73B	3.95B	2.47B
Gross Profit	2.72B	2.80B	2.71B	2.63B	2.94B	1.76B
EBITDA	689.55M	816.80M	799.05M	779.84M	1.09B	480.71M
Net Income	378.40M	421.36M	445.05M	361.57M	772.02M	1.78B
Balance Sheet
Total Assets	6.23B	6.21B	6.08B	5.95B	5.94B	4.83B
Cash, Cash Equivalents and Short-Term Investments	1.00B	1.04B	972.74M	999.58M	1.17B	960.84M
Total Debt	87.28M	119.28M	126.62M	126.91M	125.38M	86.18M
Total Liabilities	2.28B	2.36B	2.45B	2.35B	2.32B	1.60B
Stockholders Equity	3.96B	3.85B	3.63B	3.60B	3.62B	3.23B
Cash Flow
Free Cash Flow	633.16M	622.65M	608.06M	276.83M	771.45M	507.26M
Operating Cash Flow	656.12M	738.23M	785.78M	568.73M	1.17B	662.17M
Investing Cash Flow	-130.44M	-254.91M	-195.94M	-213.32M	-563.43M	-231.51M
Financing Cash Flow	-570.19M	-355.72M	-598.34M	-501.69M	-458.33M	-30.81M

Align Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGN, the sentiment is Positive. The current price of 138.53 is above the 20-day moving average (MA) of 132.79, above the 50-day MA of 133.39, and below the 200-day MA of 169.39, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALGN.

Align Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMED	―	$8.27B	23.62	8.62%	―	17.43%	775.48%
ZBH	―	$19.79B	24.32	6.52%	0.96%	4.11%	-14.43%
ALGN	―	$10.04B	26.86	9.58%	―	0.56%	-12.05%
SNN	―	$15.53B	32.53	9.20%	2.04%	5.78%	61.52%
UFPT	―	$1.53B	23.08	19.29%	―	40.98%	34.80%
GKOS	―	$5.02B	-56.35	-12.19%	―	30.38%	47.64%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Align Tech Corporate Events

Align Technology’s Earnings Call Highlights Growth Amid Challenges

Align Technology’s recent earnings call painted a picture of robust growth in specific segments, despite facing challenges in others. The overall sentiment was positive, driven by strong performance in the Clear Aligner segment, particularly among teens and kids, and successful expansion in digital solutions and DSO channels. However, the company acknowledged ongoing challenges in the North America retail channel and a decline in Systems and Services revenue, which impacted operating margins and tax rates.

Align Technology Reports Q3 2025 Financial Performance

Align Technology, Inc. is a global medical device company specializing in the design, manufacture, and sale of the Invisalign System, iTero intraoral scanners, and exocad CAD/CAM software, which are used in digital orthodontics and restorative dentistry. The company is recognized for its innovative approach in the dental industry, offering advanced solutions for orthodontists and dentists worldwide.

Align Technology’s Clinical Study: A Game Changer in Orthodontics?

Align Technology is conducting a clinical study titled ‘Hyrax Vs. Invisalign Palatal Expander Clinical Study’ to compare the expansion results and overall experience between the Invisalign Palatal Expander and the Hyrax expander. This study aims to address conditions such as malocclusions and narrow maxillary arches, which are significant in orthodontic treatment.

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 Technology’s Mixed Earnings Call: Growth Amid Challenges

Align Technology’s recent earnings call revealed a mixed sentiment, showcasing growth in certain segments while grappling with significant challenges. The company reported progress in its Systems and Services segment and celebrated milestones in teen treatments. However, these positive developments were overshadowed by a decline in clear aligner revenues and economic uncertainties affecting performance in North America and Europe. Align is also planning restructuring efforts to address these challenges.

Align Technology Reports Mixed Q2 2025 Results

Align Technology, Inc., a prominent player in the medical device industry, specializes in designing and manufacturing the Invisalign System, iTero intraoral scanners, and exocad CAD/CAM software, catering to digital orthodontics and restorative dentistry.