/
Our Company Align Technology, Inc. ( we, us, our, Align or the Company ) is a global medical device company primarily engaged in the design, manufacture and marketing of Invisalign clear aligners for the treatment of malocclusions, or the misalignment of teeth, by orthodontists and general dental practitioners ( GPs ), Vivera TM retainers for retention, iTero TM intraoral scanners and services …
$163.04
$0.34 (-0.21%)
Price from 13 days ago
13.53% operating margin is respectable but not wide. ROIC at 9.12%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 0.9%, essentially flat. Margins also contracted 1.7pp. This is a business that needs a catalyst.
At 27x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 21% versus the prior year, cash generation momentum has weakened.
27.4x earnings, 20.0x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$4.10B
▲ +0.9% YoY
Net Income (TTM)
$430M
▼ -2.6% YoY
Op. Margin
13.59%
▼ -1.7pp YoY
ROIC
9.50%
▼ -1.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$584M
▼ -21.2% YoY
Op. Cash Flow (TTM)
$692M
▼ -19.6% YoY
Net Debt
-$944M
Net Cash Position
Cash & Equiv.
$1.06B
5Y CAGR: +10.3%
5Y CAGR: -0.7%
Continue Research