Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance and promising market position. With a current share price of $240.47 and a recent daily gain of 5.07%, despite a three-month decline of 12.42%, the company shows significant potential for future growth. This optimism is further supported by the GF Score, which indicates that Align Technology Inc is poised for substantial 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. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. A higher GF Score typically suggests a higher potential for returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Align Technology Inc boasts a GF Score of 97, indicating top-tier potential for market outperformance.
- 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 $17.96 billion and annual sales of $3.94 billion, is a leading manufacturer of clear aligners. Its flagship product, Invisalign, was FDA-approved in 1998 and now 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. Additionally, Align sells iTero intraoral scanners, which are used in over half of Invisalign cases.
Financial Strength Breakdown
Align Technology Inc's financial robustness is reflected in its impressive Financial Strength rank and an Altman Z-Score of 5.89, indicating a low probability of financial distress. The company's strategic debt management is evidenced by a favorable Debt-to-Revenue ratio of 0.03, underscoring its financial health and prudent capital structure management.
Profitability and Growth Metrics
Align Technology Inc's Profitability Rank is outstanding, supported by a strong Piotroski F-Score which indicates healthy corporate operations. The company's Predictability Rank of 4.0 stars further highlights its consistent operational performance. In terms of growth, Align Technology Inc has demonstrated a remarkable 3-Year Revenue Growth Rate of 17.4%, significantly outperforming the majority of its industry peers.
Conclusion
Considering Align Technology Inc's robust financial strength, exceptional profitability, and compelling growth metrics, the GF Score underscores the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies 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.
