One-glance verdict
Within fair range
$150.20 our estimate vs market $157.72
Wall Street consensus: $186.50 (24.2% higher than our fair-value estimate)
5% above our estimate
Fundamentals snapshot
Align Technology, Inc.
ALGN · NMS · Healthcare · Medical Instruments & Supplies
Current price
$157.72
52-week range
$130.23 - $200.44
Market cap
$11.20B
Balance sheet
Healthy
36.48x Strong cushion
Net cash $1.03B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.1% last year.
- Reward Returns 11.9% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
Align Technology, Inc.
Align Technology makes Invisalign clear braces and scanners that dentists use to plan treatments, with most of their money coming from selling these clear aligners. This matters because their focus on clear aligners and digital planning tools shows they are a leader in a growing part of dental care, which can lead to better profits (known as margins) for the company.
How the company got here
Align Technology was founded in 1997 with a vision to revolutionize orthodontic treatment. The company pioneered the use of 3D digital scanning and clear aligner technology to create a more discreet and comfortable alternative to traditional metal braces. A key turning point was the development and widespread adoption of the Invisalign system, which allowed dentists and orthodontists to offer a customized, virtually invisible treatment plan for straightening teeth. This innovation disrupted the traditional orthodontics market and established Align Technology as a leader in dental technology.
What it actually does
Align Technology is a company that makes products to help straighten teeth and improve oral health. Think of them as the innovators behind a popular alternative to metal braces. They create custom-made clear plastic aligners that gradually move teeth into the desired position over time. Beyond aligners, they also provide digital scanning tools for dentists to get precise 3D images of a patient's mouth, and software to help plan and manage treatments. Their goal is to make orthodontic care more convenient and aesthetically pleasing for patients.
Clear Aligners
This is the core business of Align Technology, primarily known for its Invisalign brand. They create custom-made, clear plastic aligners that patients wear to gradually straighten their teeth. These aligners are designed to be virtually invisible, offering a more aesthetically pleasing option compared to traditional metal braces. This segment also includes Vivera retainers, which are used after treatment to keep teeth in their new position, and various other oral health products and services that support the orthodontic treatment process. This segment represents the largest portion of the company's revenue.
Imaging Systems and CAD/CAM Services
This segment focuses on the technology that enables the creation and management of clear aligner treatments. It includes iTero intraoral scanners, which dentists use to create detailed 3D digital models of a patient's teeth and mouth. This technology replaces the need for messy traditional impressions. The segment also offers exocad software, which helps dental professionals design and plan treatments, as well as other digital tools and services that support the entire workflow from scanning to treatment. This part of the business is crucial for both Align's own aligner production and for other dental professionals.
What management is betting on now
Align Technology's management is focused on expanding the reach and capabilities of its clear aligner treatments and digital technology. They are investing in making Invisalign accessible to a wider range of patients, including younger children and those with more complex orthodontic needs. A key strategy is to further integrate their digital scanning and software solutions, creating a seamless experience for both dental professionals and patients. They are also looking to enhance the treatment outcomes and efficiency through ongoing innovation in materials and digital planning tools, aiming to solidify their leadership in the orthodontic market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$263.12M
FY2025 Q1
$27.39M
FY2025 Q2
$107.17M
FY2025 Q3
$168.96M
FY2025 Q4
$187.26M
FY2026 Q1
$120.26M
FY2026 Q2
$157.09M
FY2026 Q3
$137.89M
Revenue
$1.01B
Net income
$135.04M
Diluted EPS
1.90
Operating cash flow
$182.92M
Free cash flow
$137.89M
Fetching…
Sources
Revenue
$1.06B
Net income
$108.29M
Diluted EPS
1.51
Operating cash flow
$192.76M
Free cash flow
$157.09M
Fetching…
Sources
Revenue
$1.04B
Net income
$112.77M
Diluted EPS
1.57
Operating cash flow
$151.04M
Free cash flow
$120.26M
Fetching…
Sources
Revenue
$1.05B
Net income
$135.76M
Diluted EPS
1.88
Operating cash flow
$223.18M
Free cash flow
$187.26M
Fetching…
Sources
Revenue
$995.69M
Net income
$56.75M
Diluted EPS
0.78
Operating cash flow
$188.72M
Free cash flow
$168.96M
Fetching…
Sources
Revenue
$1.01B
Net income
$124.61M
Diluted EPS
1.72
Operating cash flow
$128.65M
Free cash flow
$107.17M
Fetching…
Sources
Revenue
$979.26M
Net income
$93.23M
Diluted EPS
1.27
Operating cash flow
$52.68M
Free cash flow
$27.39M
Fetching…
Sources
Revenue
$995.22M
Net income
$103.81M
Diluted EPS
1.40
Operating cash flow
$286.08M
Free cash flow
$263.12M
Fetching…
Sources
Is it cheap or expensive?
Fair value $150.20 vs current price $157.72
Wall Street consensus is the average analyst price target: $186.50 (24.2% higher than our fair-value estimate).
Our most-likely fair value is $150.20 a share — about 4.8% away from today's price of $157.72, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $1.0B - more cash than debt. Interest coverage 36.5x.
Net debt
$-1.03B
Interest coverage
36.48x
Align Technology, Inc.'s profit covers its interest bill about 36.5 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
ALGN
BASELINE
Align Technology, Inc.
Total debt $112.30M Interest coverage 36.48x This is the baseline the peer rows are being compared against.
Total debt $2.33B Interest coverage 2.86x -92% vs ALGN Carries about 12.7x less debt cushion than ALGN.
Total debt $1.59B Interest coverage 6.44x -82% vs ALGN Carries about 5.7x less debt cushion than ALGN.
Total debt $3.89B Interest coverage 5.05x -86% vs ALGN Carries about 7.2x less debt cushion than ALGN.
Total debt $5.30B Interest coverage 1.82x -95% vs ALGN Carries about 20.0x less debt cushion than ALGN.
What you should know
The case for and against ALGN
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.1% last year.
-
Returns 11.9% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.99x
Forward P/E
12.81x
P/B
2.60x
P/S
2.69x
EV/EBITDA
11.19x
PEG ratio
0.70x
Profitability
How much profit each dollar creates
Gross margin
71.3%
Operating margin
20.1%
Net margin
11.8%
ROE
11.9%
ROA
7.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
1.43x
Quick ratio
1.21x
Total debt
$112.30M
Total cash
$1.14B
Growth
How the business has been compounding
Revenue TTM
$4.16B
Revenue 5Y CAGR
0.5%
EPS TTM
6.86
EPS 5Y CAGR
7.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$749.89M
Free CF TTM
$490.78M
FCF margin
11.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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