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 $234.52 and a notable daily gain of 6.58%, despite a three-month decline of -16.43%, the company stands out in the competitive landscape. A detailed analysis, supported by the GF Score, indicates that Align Technology Inc is poised for significant growth, making it a compelling choice for investors.
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 been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better 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 potential.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 5/10
Understanding Align Technology Inc's Business
Align Technology Inc, with a market cap of $17.52 billion and annual sales of $3.94 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 is capable of treating 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 creating digital impressions and treatment plans, with over 85% of Invisalign cases submitted via digital scans.
Financial Strength and Stability
Align Technology Inc's financial robustness is reflected in its impressive Financial Strength rating. With an Altman Z-Score of 5.72, the company demonstrates a strong buffer against financial distress. Its strategic management of debt is evident from a low Debt-to-Revenue ratio of 0.03, underscoring its financial health and prudent capital structure management.
Profitability and Growth Trajectory
Align Technology Inc's Profitability Rank is outstanding, reflecting its superior ability to generate profits relative to its peers. The company's commitment to growth is evident from its high Growth Rank, with a 3-Year Revenue Growth Rate of 17.4%, surpassing 72.24% of competitors in the Medical Devices & Instruments industry. This growth is supported by a strong increase in EBITDA, highlighting the company's ongoing ability to expand and generate increased earnings.
Conclusion: A Promising Investment Prospect
Considering Align Technology Inc's robust financial strength, impressive profitability, and consistent 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 available to GuruFocus Premium members.
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.
