Align Technology, Inc. (ALGN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DexCom, Inc.

Agilent Technologies, Inc.

West Pharmaceutical Services, Inc.

GE Healthcare Technologies, Inc.

IDEXX Laboratories, Inc.

Align Technology, Inc.

Becton, Dickinson & Co.

Edwards Lifesciences Corp.

Medtronic Plc

Zimmer Biomet Holdings, Inc.

Mettler-Toledo International, Inc.

Why is Align Technology, Inc. ?

High Management Efficiency with a high ROE of 12.95%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 9.66% of over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 593.23 MM
ROCE(HY) Lowest at 10.39%
RAW MATERIAL COST(Y) Grown by 7.27% (YoY)

With ROE of 11.79%, it has a fair valuation with a 2.98 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 5.27%, its profits have risen by 8.1% ; the PEG ratio of the company is 2

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.46% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Align Technology, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Align Technology, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Align Technology, Inc.

5.81%

-0.55

54.34%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.30%

EBIT Growth (5y)

9.66%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.02

Tax Ratio

30.70%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

25.44%

ROE (avg)

12.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.98

EV to EBIT

17.89

EV to EBITDA

14.66

EV to Capital Employed

3.72

EV to Sales

2.72

PEG Ratio

2.03

Dividend Yield

ROCE (Latest)

20.78%

ROE (Latest)

11.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.32 times

DEBT-EQUITY RATIO (HY)

Lowest at -25 %

NET SALES(Q)

Highest at USD 1,047.56 MM

EPS(Q)

Highest at USD 1.89

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 593.23 MM

ROCE(HY)

Lowest at 10.39%

RAW MATERIAL COST(Y)

Grown by 7.27% (YoY

OPERATING PROFIT(Q)

Lowest at USD 159.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.23 %

Here's what is working for Align Technology, Inc.

Inventory Turnover Ratio

Highest at 5.32 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 1,047.56 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD 1.89

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at -25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Align Technology, Inc.

Operating Cash Flow

Lowest at USD 593.23 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 159.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 15.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales