Align Technology Inc (ALGN, Financial) has recently captured the attention of investors and financial analysts due to its strong financial performance and market presence. Currently, the company's shares are priced at $225.25, reflecting a daily gain of 0.62%, although it has experienced a three-month change of -4.01%. A detailed analysis, supported by the GF Score, indicates that Align Technology Inc is strategically positioned for significant growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus, which evaluates five key aspects of valuation. This score has been shown to correlate closely with the long-term performance of stocks, based on backtesting from 2006 to 2021. Stocks with higher GF Scores tend to generate better returns than those with lower scores. The GF Score ranges from 0 to 100, with 100 being the highest rank. Align Technology Inc boasts a GF Score of 96 out of 100, indicating a strong potential for outperformance.
Company Overview: Align Technology Inc
Align Technology Inc is a leading manufacturer of clear aligners, with its flagship product, Invisalign, dominating over 90% of the market since its FDA approval in 1998. Invisalign can address approximately 90% of malocclusion cases, with over 230,000 trained dentists and orthodontists worldwide. In 2022, Invisalign treated over 2 million cases, representing about 10% of all orthodontic cases for the year. Additionally, Align Technology Inc offers intraoral scanners under the iTero brand, which are used in over half of Invisalign cases. The company has a market cap of $16.8 billion, with sales amounting to $3.96 billion and an operating margin of 17.16%.
Financial Strength Analysis
Align Technology Inc's Financial Strength rating highlights its robust balance sheet and resilience against financial volatility. The company has an Altman Z-Score of 5.76, indicating strong financial stability and a low risk of financial distress. Furthermore, its Debt-to-Revenue ratio of 0.03 underscores its strategic management of debt, reinforcing its financial health.
Profitability and Growth Metrics
Align Technology Inc's Profitability Rank is impressive, reflecting its ability to generate profit effectively. The company's Piotroski F-Score further confirms its solid financial standing, while its Predictability Rank of 4.0 stars out of five highlights its consistent operational performance. In terms of growth, Align Technology Inc's Growth Rank is noteworthy, with a 3-Year Revenue Growth Rate of 17.4%, outperforming 72.37% of companies in the Medical Devices & Instruments industry. The company's EBITDA growth rates of 19.8% over three years and 12.5% over five years further emphasize its growth trajectory.
Conclusion: Align Technology Inc's Potential for Outperformance
Align Technology Inc's strong financial strength, profitability, and growth metrics, as highlighted by its high GF Score, underscore the company's exceptional position for potential market outperformance. Investors seeking companies with robust financial health and growth potential may find Align Technology Inc an attractive option. For those interested in exploring more companies with strong GF Scores, GuruFocus Premium members can utilize the following screener link: 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.
