Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $249.24 and a modest daily gain of 0.12%, despite a three-month decline of 24.65%, the company's resilience and potential for growth are evident. A detailed analysis, supported by the GF Score, positions Align Technology Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher 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 99, signaling exceptional growth prospects.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 7/10
Understanding Align Technology Inc's Business
Align Technology Inc, with a market cap of $18.76 billion and annual sales of $3.92 billion, is a leader in the clear aligner industry. 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 crucial for digital treatment planning in over 85% of Invisalign cases.
Financial Strength and Stability
Align Technology Inc's financial robustness is reflected in its Financial Strength rating. With an Altman Z-Score of 6.34, the company shows a strong buffer against financial distress. Its strategic debt management is evident from a favorable Debt-to-Revenue ratio of 0.03, underscoring its prudent financial practices.
Profitability and Growth Metrics
Align Technology Inc excels in profitability, as indicated by its top Profitability Rank. The company's financial health is further affirmed by a solid Piotroski F-Score. Growth is another area where Align Technology shines, with a Growth Rank of 10/10. Its 3-Year Revenue Growth Rate of 17.4% outperforms 72.54% of peers in the Medical Devices & Instruments industry. This sustained growth is supported by significant increases in EBITDA over recent years.
Conclusion: A Promising Outlook
Considering Align Technology Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using 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.
