Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With a current share price of $243.49 and a daily gain of 0.85%, despite a three-month decline of -23.41%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Align Technology Inc for significant future success.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. This system, which has been backtested from 2006 to 2021, reveals that stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Align Technology Inc boasts a GF Score of 97, signaling strong future performance prospects.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 5/10
Understanding Align Technology Inc's Business
Align Technology Inc, with a market cap of $18.33 billion and annual sales of $3.92 billion, is a leading manufacturer of clear aligners. Its flagship product, Invisalign, approved by the FDA in 1998, dominates the market with over 90% share. Invisalign treats approximately 90% of all malocclusion cases and is supported by over 230,000 trained dentists and orthodontists worldwide. In 2022 alone, Invisalign treated over 2 million cases. Additionally, Align sells iTero intraoral scanners, which are pivotal in digital orthodontics, contributing to over half of Invisalign's case submissions.
Financial Strength Breakdown
Align Technology Inc's financial resilience is reflected in its robust balance sheet and strategic debt management. With an Altman Z-Score of 6.2, the company shows a strong buffer against financial distress. Furthermore, its Debt-to-Revenue ratio of 0.03 underscores a prudent approach to debt handling, enhancing its financial health.
Profitability and Growth Metrics
Align Technology Inc stands out with its high Profitability Rank and consistent operational performance, as indicated by a Predictability Rank of 4.0 stars. The company's commitment to growth is evident from its 17.4% 3-Year Revenue Growth Rate, surpassing 72.58% of peers in the Medical Devices & Instruments industry. This growth trajectory is further highlighted by a significant increase in EBITDA over recent years.
Conclusion: A Promising Investment?
Considering Align Technology Inc's strong financial strength, profitability, and growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
