Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position and promising market prospects. With a current share price of $244.05 and a modest daily gain of 0.13%, despite a slight dip of -3.73% over the past three months, the company's financial health and growth potential are noteworthy. A detailed analysis, supported by the GF Score, positions Align Technology Inc as a contender for significant future growth.
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, which have been proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. Align Technology Inc boasts a GF Score of 97 out of 100, indicating a strong potential for market outperformance.
- 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 $18.23 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 used in over half of Invisalign cases.
Financial Strength and Stability
Align Technology Inc's financial robustness is reflected in its impressive Financial Strength Rank and an Altman Z-Score of 6.16, indicating a strong buffer against financial distress. The company's strategic debt management is evident from its low Debt-to-Revenue ratio of 0.03, underscoring its prudent financial management.
Profitability and Growth Metrics
Align Technology Inc stands out with a top-tier Profitability Rank. The company's financial health is further endorsed by a high Piotroski F-Score and a Predictability Rank of 4.0 stars, reflecting consistent operational performance. Its commitment to growth is demonstrated by a 17.4% 3-Year Revenue Growth Rate, surpassing 71.85% of its 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 highlights the company's strong position for potential market outperformance. For investors looking for similar opportunities, GuruFocus Premium members can explore more companies with strong GF Scores using 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.
