A Business at a Glance
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ALIGN TECHNOLOGY INC
ALGN
$12.1B
Mkt Cap
$167.01
-0.73%
ALIGN TECHNOLOGY INC (ALGN) has a current P/E ratio of 28.2, compared to its historical median P/E of 43.7. The stock is currently considered Fair based on its historical valuation range.
ALIGN TECHNOLOGY INC (ALGN) has a 5-year average return on invested capital (ROIC) of 19.9%. This indicates strong capital allocation and a potential competitive advantage.
ALIGN TECHNOLOGY INC (ALGN) has a market capitalization of $12.0B. It is classified as a large-cap stock.
ALIGN TECHNOLOGY INC (ALGN) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.48%.
Based on historical P/E analysis, ALIGN TECHNOLOGY INC (ALGN) appears fair. The current P/E of 28.2 is 35% below its historical median of 43.7. The estimated fair value CAGR (P/E method) is -7.5%.
ALIGN TECHNOLOGY INC (ALGN) operates in the Orthopedic, Prosthetic & Surgical Appliances & Supplies industry, within the Healthcare sector.
ALIGN TECHNOLOGY INC (ALGN) reported annual revenue of $4.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Align Technology manufactures and distributes Invisalign clear aligners and digital dentistry solutions globally, serving orthodontists, general practitioners, and dental service organizations (DSOs) across North America, EMEA, APAC, and Latin America. The company operates two primary segments: clear aligners, which generate revenue through case-based sales with varying configurations ranging from comprehensive multi-aligner treatments to zero-additional-aligner (zero AA) streamlined products that enable earlier revenue recognition, and systems and services, which includes iTero intraoral scanners, exocad CAD/CAM software, X-ray Insights, and related digital workflow tools that support case planning and practice efficiency. The clear aligner business model is driven by volume growth, geographic mix, and product mix dynamics, with revenue influenced by pricing, foreign exchange, and the shift toward lower-priced configurations and emerging markets; systems and services operates on a capital equipment and recurring software/service revenue basis with gross margins around 67%, benefiting from operational efficiencies and scanner adoption. Align's competitive differentiation rests on the clinical capability and breadth of the Invisalign system, which enables multiple treatment options and configurations that allow doctors to compete with traditional wires and brackets, supported by a large installed base of over 296,000 trained doctors who have treated over 22 million patients including 6.5 million teens and growing kids. The company pursues growth through targeted affordability initiatives, peer-to-peer engagement programs, DSO partnerships, and localized marketing focused on patient conversion and practice efficiency, with particular emphasis on the teens and kids category as a durable long-term growth driver.
【Margin expansion with cautious growth】 Management expects continued profitability and productivity improvements through 2026 as operational efficiencies and product mix gains offset pricing pressures and geographic mix shifts toward lower-priced markets. The company is maintaining a prudent stance on full-year guidance despite encouraging first-quarter performance, citing macroeconomic uncertainty and potential impacts from Middle East geopolitical developments on consumer sentiment and discretionary spending. Capital allocation priorities include disciplined execution on margin expansion targets, continued investment in next-generation manufacturing technologies and automation, and share repurchases of up to $200 million over six months, reflecting management's conviction in underlying business fundamentals. Management expects clear aligner volumes to grow mid-single digits year-over-year in 2026, with average selling prices remaining relatively flat, while systems and services revenues are anticipated to grow in line with company-wide guidance; the company will provide updates as visibility improves over the course of the year.
| Metric | Target | Period |
|---|---|---|
| FY2026 Worldwide Revenue Growth | up 3%-4% year-over-year | FY2026 |
| FY2026 Clear Aligner Volume Growth | up mid-single digits year-over-year | FY2026 |
| FY2026 GAAP Operating Margin | slightly below 18% | FY2026 |
| FY2026 Non-GAAP Operating Margin | approximately 23.7% | FY2026 |
| FY2026 Capital Expenditures | $125 million–$150 million | FY2026 |
FY2026 Worldwide Revenue Growth (FY2026): “We expect 2026 worldwide revenue growth to be up 3%-4% year-over-year.”
FY2026 Clear Aligner Volume Growth (FY2026): “We expect 2026 clear aligner volume growth to be up mid-single digits year-over-year.”
FY2026 GAAP Operating Margin (FY2026): “We expect 2026 GAAP operating margin to be slightly below 18% and approximately 400 basis point improvement over 2025”
FY2026 Non-GAAP Operating Margin (FY2026): “and non-GAAP operating margin to be approximately 23.7%, a 100 basis point improvement year-over-year, consistent with our previous guidance.”
FY2026 Capital Expenditures (FY2026): “We expect our investments in capital expenditures for fiscal 2026 to be $125 million-$150 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.1B | 4.0B | 4.0B | 3.9B | 3.7B | 4.0B |
| Net Income | 430M | 410M | 421M | 445M | 362M | 772M |
| EPS | $5.98 | $5.65 | $5.62 | $5.81 | $4.61 | $9.69 |
| Free Cash Flow | 584M | 491M | 623M | 608M | 277M | 771M |
| ROIC | 13.0% | 13.0% | 22.7% | 16.7% | 15.5% | 31.5% |
| Gross Margin | 67.6% | 67.2% | 70.0% | 70.1% | 70.5% | 74.3% |
| Debt/Equity | 0.00 | 0.03 | 0.02 | 0.03 | 0.04 | 0.03 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 557M | 546M | 608M | 643M | 643M | 976M |
| Operating Margin | 13.6% | 13.5% | 15.2% | 16.7% | 17.2% | 24.7% |
| ROE | 10.4% | 10.4% | 10.9% | 12.3% | 10.0% | 22.5% |
| Shares Outstanding | 72M | 73M | 75M | 77M | 78M | 80M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 762M | 845M | 1.1B | 1.5B | 2.0B | 2.4B | 2.5B | 4.0B | 3.7B | 3.9B | 4.0B | 4.0B | 4.1B |
| Gross Margin | 75.9% | 75.7% | 75.5% | 75.8% | 73.6% | 72.5% | 71.3% | 74.3% | 70.5% | 70.1% | 70.0% | 67.2% | 67.6% |
| R&D | 53M | 61M | 76M | 98M | 129M | 157M | 175M | 250M | 305M | 347M | 364M | 370M | 371M |
| SG&A | 332M | 390M | 491M | 666M | 852M | 1.1B | 1.2B | 1.7B | 1.7B | 1.7B | 1.8B | 1.8B | 1.8B |
| EBIT | 194M | 189M | 249M | 354M | 467M | 542M | 387M | 976M | 643M | 643M | 608M | 546M | 557M |
| Op. Margin | 25.4% | 22.3% | 23.1% | 24.0% | 23.7% | 22.5% | 15.7% | 24.7% | 17.2% | 16.7% | 15.2% | 13.5% | 13.6% |
| Net Income | 146M | 144M | 190M | 231M | 400M | 443M | 1.8B | 772M | 362M | 445M | 421M | 410M | 430M |
| Net Margin | 19.1% | 17.0% | 17.6% | 15.7% | 20.4% | 18.4% | 71.8% | 19.5% | 9.7% | 11.5% | 10.5% | 10.2% | 10.5% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 1.3M | 0 | 0 | 10M | 14M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 41.3% | 36.6% | 43.9% | 53.6% | 65.2% | 82.4% | 77.5% | 31.5% | 15.5% | 16.7% | 22.7% | 13.0% | 13.0% |
| ROE | 21.0% | 18.0% | 20.5% | 21.5% | 33.3% | 34.1% | 77.5% | 22.5% | 10.0% | 12.3% | 10.9% | 10.4% | 10.4% |
| ROA | 16.0% | 13.4% | 14.8% | 14.6% | 20.9% | 19.4% | 48.5% | 14.3% | 6.1% | 7.4% | 6.8% | 6.6% | 6.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 227M | 238M | 248M | 439M | 555M | 747M | 662M | 1.2B | 569M | 786M | 738M | 593M | 692M |
| Free Cash Flow | 203M | 185M | 177M | 243M | 331M | 598M | 507M | 771M | 277M | 608M | 623M | 491M | 584M |
| Owner Earnings | 169M | 167M | 170M | 342M | 429M | 580M | 470M | 949M | 310M | 489M | 419M | 170M | 255M |
| CapEx | 24M | 53M | 71M | 196M | 223M | 150M | 155M | 401M | 292M | 178M | 116M | 102M | 108M |
| Maint. CapEx | 18M | 18M | 24M | 38M | 55M | 79M | 94M | 109M | 126M | 142M | 145M | 237M | 255M |
| Growth CapEx | 6.2M | 35M | 47M | 158M | 169M | 71M | 61M | 292M | 166M | 35M | 0 | 0 | 0 |
| D&A | 18M | 18M | 24M | 38M | 55M | 79M | 94M | 109M | 126M | 142M | 145M | 237M | 255M |
| CapEx/OCF | 10.6% | 22.5% | 28.5% | 44.6% | 40.3% | 20.0% | 23.4% | 34.2% | 51.3% | 22.6% | 15.7% | N/A | 15.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 98M | 102M | 96M | 104M | 300M | 400M | 0 | 375M | 435M | 592M | 353M | 466M | 296M |
| Buyback Yield | 2.1% | 1.9% | 1.2% | 0.6% | 1.8% | 1.8% | N/A | 0.7% | 2.8% | 2.8% | 2.2% | 0.0% | 2.5% |
| Stock-Based Comp | 40M | 53M | 54M | 59M | 71M | 88M | 98M | 114M | 133M | 154M | 174M | 186M | 182M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -455M | -527M | -640M | -722M | N/A | -809M | -875M | -1.2B | -915M | -854M | -2.0B | -980M | -1.1B |
| Cash & Equiv. | 200M | 168M | 389M | 450M | 637M | 550M | 961M | 1.1B | 942M | 937M | 1.0B | 1.1B | 1.1B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.64 | 0.04 | 0.03 | 0.03 | 0.04 | 0.03 | 0.02 | 0.03 | 0.00 |
| Interest Coverage | N/A | 188.6 | 177.8 | 442.0 | 311.0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | 753M | 848M | 999M | 1.2B | 1.3B | 1.3B | 3.2B | 3.6B | 3.6B | 3.6B | 3.9B | 4.0B | 4.1B |
| Total Assets | 988M | 1.2B | 1.4B | 1.8B | 2.1B | 2.5B | 4.8B | 5.9B | 5.9B | 6.1B | 6.2B | 6.2B | 6.3B |
| Total Liabilities | 235M | 311M | 401M | 630M | 800M | 1.2B | 1.6B | 2.3B | 2.3B | 2.5B | 2.4B | 2.2B | 2.2B |
| Intangibles | 21M | 18M | 21M | 24M | 18M | 12M | 130M | 110M | 96M | 82M | 103M | 94M | 101M |
| Retained Earnings | -31M | 27M | 131M | 267M | 378M | 440M | 2.2B | 2.6B | 2.6B | 2.4B | 2.5B | 2.5B | 2.5B |
| Working Capital | 455M | 460M | 599M | 658M | 610M | 662M | 524M | 570M | 499M | 380M | 454M | 697M | 750M |
| Current Assets | 657M | 732M | 953M | 1.2B | 1.3B | 1.6B | 1.8B | 2.5B | 2.4B | 2.4B | 2.5B | 2.6B | 2.7B |
| Current Liabilities | 202M | 272M | 354M | 500M | 692M | 971M | 1.3B | 1.9B | 1.9B | 2.1B | 2.0B | 1.9B | 1.9B |
| Per Share Data | |||||||||||||
| EPS | 1.77 | 1.77 | 2.33 | 2.83 | 4.92 | 5.53 | 22.41 | 9.69 | 4.61 | 5.81 | 5.62 | 5.65 | 5.98 |
| Owner EPS | 2.05 | 2.05 | 2.08 | 4.18 | 5.28 | 7.25 | 5.93 | 11.92 | 3.95 | 6.39 | 5.60 | 2.34 | 3.56 |
| Book Value | 9.14 | 10.42 | 12.28 | 14.12 | 15.40 | 16.81 | 40.81 | 45.47 | 45.92 | 47.39 | 51.38 | 55.75 | 57.94 |
| Cash Flow/Share | 2.75 | 2.92 | 3.04 | 5.36 | 6.82 | 9.33 | 8.36 | 14.72 | 7.25 | 10.26 | 9.85 | 8.17 | 9.56 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 82.4M | 81.4M | 81.4M | 81.8M | 81.3M | 80.1M | 79.2M | 79.7M | 78.4M | 76.6M | 75.0M | 72.6M | 71.6M |
| Valuation | |||||||||||||
| P/E Ratio | 32.0 | 37.5 | 41.5 | 80.0 | 42.3 | 50.2 | 23.2 | 67.7 | 43.7 | 47.6 | 37.6 | N/A | 27.9 |
| P/FCF | 23.0 | 29.2 | 44.5 | 76.3 | 51.1 | 37.2 | 81.4 | 67.8 | 57.1 | 34.9 | 25.5 | N/A | 20.5 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 19.6 |
| Price/Book | 6.2 | 6.4 | 7.9 | 16.0 | 13.5 | 16.5 | 12.8 | 14.4 | 4.4 | 5.8 | 4.1 | N/A | 2.9 |
| Price/Sales | 5.8 | 5.8 | 6.1 | 8.8 | 12.2 | 8.3 | 9.7 | 12.4 | 6.7 | 5.9 | 4.8 | N/A | 2.9 |
| FCF Yield | 4.3% | 3.4% | 2.2% | 1.3% | 2.0% | 2.7% | 1.2% | 1.5% | 1.8% | 2.9% | 3.9% | N/A | 4.9% |
| Market Cap | 4.7B | 5.4B | 7.9B | 18.5B | 16.9B | 22.2B | 41.3B | 52.3B | 15.8B | 21.2B | 15.9B | 0 | 12.0B |
| Avg. Price | 53.82 | 59.88 | 81.15 | 157.99 | 294.27 | 248.84 | 302.87 | 615.58 | 318.25 | 297.97 | 257.74 | 0.00 | 167.01 |
| Year-End Price | 56.66 | 66.34 | 96.80 | 226.48 | 208.29 | 277.64 | 520.86 | 656.37 | 201.58 | 276.67 | 211.43 | 0.00 | 167.01 |
ALIGN TECHNOLOGY INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
ALIGN TECHNOLOGY INC trades at 28.2x trailing earnings, compared to its 15-year median P/E of 43.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 19.2x vs a median of 51.1x. The company's 5-year average ROIC is 19.9% with a gross margin of 70.4%. Total shareholder yield (buybacks) is 2.5%. At current prices, the estimated annualized return to fair value is +3.8%.
ALIGN TECHNOLOGY INC (ALGN) has a net profit margin of 10.2%. This is a healthy margin.
ALIGN TECHNOLOGY INC (ALGN) generated $491 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ALIGN TECHNOLOGY INC (ALGN) has a debt-to-equity ratio of 0.03. This indicates a conservatively financed balance sheet.
ALIGN TECHNOLOGY INC (ALGN) reported earnings per share (EPS) of $5.65 in its most recent fiscal year.
ALIGN TECHNOLOGY INC (ALGN) has a return on equity (ROE) of 10.4%. This indicates moderate shareholder returns.
ALIGN TECHNOLOGY INC (ALGN) has a 5-year average gross margin of 70.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for ALIGN TECHNOLOGY INC (ALGN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ALIGN TECHNOLOGY INC (ALGN) has a book value per share of $55.75, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued profitability and productivity improvements through 2026 as operational efficiencies and product mix gains offset pricing pressures and geographic mix shifts toward lower-priced markets. The company is maintaining a prudent stance on full-year guidance despite encouraging first-quarter performance, citing macroeconomic uncertainty and potential impacts from Middle East geopolitical developments on consumer sentiment and discretionary spending. Capital allocation priorities include disciplined execution on margin expansion targets, continued investment in next-generation manufacturing technologies and automation, and share repurchases of up to $200 million over six months, reflecting management's conviction in underlying business fundamentals. Management expects clear aligner volumes to grow mid-single digits year-over-year in 2026, with average selling prices remaining relatively flat, while systems and services revenues are anticipated to grow in line with company-wide guidance; the company will provide updates as visibility improves over the course of the year.
Based on recent SEC filings and earnings calls, ALIGN TECHNOLOGY INC (ALGN) has provided the following forward guidance: FY2026 Worldwide Revenue Growth: up 3%-4% year-over-year (FY2026); FY2026 Clear Aligner Volume Growth: up mid-single digits year-over-year (FY2026); FY2026 GAAP Operating Margin: slightly below 18% (FY2026); FY2026 Non-GAAP Operating Margin: approximately 23.7% (FY2026); FY2026 Capital Expenditures: $125 million–$150 million (FY2026).