Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial position. With a current share price of $221.66 and a daily gain of 1.08%, coupled with a three-month change of 0.94%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Align Technology Inc for potential market leadership.
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 of valuation, which 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 97, signaling significant growth 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 $16.56 billion and annual sales of $3.96 billion, is a leading manufacturer of clear aligners. Its flagship product, Invisalign, approved by the FDA in 1998, dominates over 90% of the market. 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. Align also markets iTero intraoral scanners, which are crucial for creating digital impressions and treatment plans.
Financial Strength and Stability
Align Technology Inc's financial robustness is reflected in its impressive Financial Strength rating. With an Altman Z-Score of 5.11, the company shows a strong defense against financial distress. Its strategic management of debt, evidenced by a Debt-to-Revenue ratio of 0.02, further solidifies its financial health.
Profitability and Growth Metrics
Align Technology Inc stands out with its high Profitability Rank. The company's Piotroski F-Score and Predictability Rank of 4.0 stars affirm its operational efficiency and consistent performance. In terms of growth, Align Technology Inc has demonstrated a strong commitment to expansion, with a notable 3-Year Revenue Growth Rate of 17.4%, outperforming 72.14% of its industry peers.
Conclusion
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.
