Align Technology (ALGN)
Health Care · $10.7B market cap · SEC CIK 0001097149
fundamentals score out of 100
Next reports on Oct 28, 2026, after the close, with analysts expecting $2.86 in earnings per share.
The case for ALGN
- Has compounded revenue at 10.3% a year over five years.
- Carries essentially no debt.
- Gross margin of 69% absorbs cost shocks.
The case against
- Priced at 25.9× earnings while earnings per share are shrinking (-2.5%).
- Swings harder than the market (beta 1.73).
- The price trend is weak (40/100): +11.8% over a year, -19.3% over three months, 40% of the way up its 52-week range.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 60 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 50 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 57 |
| Momentumhow the price has behaved lately | 40 |
| Stabilityhow violently it moves, what it owes and what it pays you | 49 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 25.9× |
|---|---|
| Price / book | 2.85× |
| Price / sales | 2.6× |
| Revenue growth (YoY) | +4.4% |
| EPS growth (YoY) | -2.5% |
| Gross margin | 69% |
| Operating margin | 13% |
| Net margin | 10% |
| Return on equity | 10% |
| Debt / equity | 0.00× |
| Current ratio | 1.40 |
| Dividend yield | none |
| Beta | 1.73 |
| 52-week range | $122.00 – $200.44 |
| Position in that range | 40% of the way up |
| 3-month return | -19.3% |
| 1-year return | +11.8% |
Five years of financials, as filed
Pulled from Align Technology's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $4.0B | $4.0B | $3.9B | $3.7B | $4.0B |
| Gross profit | $2.7B | $2.8B | $2.7B | $2.6B | $2.9B |
| Operating income | $546M | $608M | $643M | $643M | $976M |
| Net income | $410M | $421M | $445M | $362M | $772M |
| Operating cash flow | $593M | $738M | $786M | $569M | $1.2B |
| Capital expenditure | $102M | $116M | $178M | $292M | $401M |
| Total assets | $6.2B | $6.2B | $6.1B | $5.9B | $5.9B |
| Total liabilities | $2.2B | $2.4B | $2.5B | $2.3B | $2.3B |
| Shareholder equity | $4.0B | $3.9B | $3.6B | $3.6B | $3.6B |
| Cash | $1.1B | $1.0B | $937M | $942M | $1.1B |
| Free cash flow | $491M | $623M | $608M | $277M | $771M |
| Gross margin | 67.2% | 70.0% | 70.1% | 70.5% | 74.3% |
| Operating margin | 13.5% | 15.2% | 16.7% | 17.2% | 24.7% |
| Net margin | 10.2% | 10.5% | 11.5% | 9.7% | 19.5% |
| Diluted shares | 72.6M | 75.0M | 76.6M | 78.4M | 79.7M |
Share count is down 8.9% over 4 years. Buybacks have been shrinking the pie.
What Align Technology says it does
Our Company Align Technology, Inc. ("we," "us," "our," "Align" or the "Company") is a global medical device company primarily engaged in the design, manufacture and marketing of Invisalign ® clear aligners for the treatment of malocclusions, or the misalignment of teeth, by orthodontists and general dental practitioners ("GPs"), Vivera TM retainers for retention, iTero TM intraoral scanners and services for dentistry, and exocad TM computer-aided design and computer-aided manufacturing ("CAD/CAM") software for dental laboratories and dental practitioners. Our vision and strategy is to revolutionize orthodontic and restorative dentistry through digital treatment planning and implementation using the Align TM Digital Platform, an integrated suite of proprietary technologies and services designed to deliver a seamless, end-to-end solution for patients, consumers, orthodontists, GPs and lab partners. We strive to achieve our vision…
Risk factors ALGN lists in its 10-K
- Global and regional economic conditions have and could in the future materially affect our business, financial condition and results of operations
- We are subject to foreign currency exchange fluctuations, which could have a material adverse effect on our financial condition or results of operations
- Geopolitical events, tariffs and trade policies, and military conflicts have and could in the future materially affect our business, financial condition and results of operations
- Demand for our products and services may not increase or may decrease for many reasons, including resistance to the innovative and business-model-disruptive nature of some of our products and services
- Competition in the markets for our products and services is increasing
- Our success depends on our ability to quickly and profitably develop, manufacture, market, and obtain and maintain regulatory approvals or clearances of new, improved or refurbished products and services
- results of operations have and will continue to fluctuate in the future, and we may not accurately predict the timing and amount of customer demand and our revenues, costs, and expenditures
- Issues with IT system and software integration, implementation, updates, and upgrades, or third-party software have previously and could again in the future disrupt our operations
- A disruption in the operations of a primary freight carrier, higher shipping costs or shipping delays could disrupt our supply chain and impact our operating and financial results
- If we cannot attract, motivate, train or retain personnel, it will be difficult to achieve our strategic priorities, which could materially adversely affect our business, financial condition and results of operations
- Legal, Regulatory and Compliance Risks
- We are subject to various laws relating to privacy, data protection, data governance and cybersecurity, and face risks related to the data we collect, process, and share
- AI and machine learning technologies in our products, services and IT systems may result in legal and regulatory risks, reputational harm or have other adverse consequences to our business
- Our success depends in part on our proprietary technology, and if we fail to successfully obtain or enforce our IP rights, our competitive position may be harmed