Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. Despite a slight daily loss of 0.45% and a three-month decline of 12.22%, the company's stock price stands at $239.27. A detailed analysis, supported by the GF Score, indicates that Align Technology Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Align Technology Inc boasts a GF Score of 96 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 4/10
Understanding Align Technology Inc's Business
Align Technology Inc, with a market cap of $17.87 billion and annual sales of $3.94 billion, leads the market in manufacturing clear aligners. Its flagship product, Invisalign, approved by the FDA in 1998, dominates over 90% of the market. 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. Align also markets the iTero intraoral scanners, which are used in over half of Invisalign cases.
Financial Strength and Stability
Align Technology Inc's financial robustness is reflected in its Financial Strength rating of 8/10. The company's Altman Z-Score of 6.1 indicates a strong buffer against financial distress, and its minimal Debt-to-Revenue ratio of 0.03 showcases effective debt management.
Profitability and Growth Metrics
Align Technology Inc excels in profitability, as evidenced by its top Profitability Rank of 10/10. The company's Piotroski F-Score further confirms its healthy financial state. Its consistent operational performance is highlighted by a Predictability Rank of 4.0 stars. Growth is also a strong suit, with a 3-Year Revenue Growth Rate of 17.4%, outperforming 72.01% of peers in the Medical Devices & Instruments industry.
Conclusion
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. For investors seeking similar opportunities, explore more high-scoring companies with our 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.
