Align Technology, Inc. (ALGN) 10-Year Financial Performance & Capital Metrics

ALGN • • Industrial / General

HealthcareMedical DevicesDental & Maxillofacial DevicesOrthodontic & Dental Imaging

AboutAlign Technology, Inc., a medical device company, designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontists and general practitioner dentists, and restorative and aesthetic dentistry. It operates in two segments, Clear Aligner; and Scanners and Services. The Clear Aligner segment consists of comprehensive products, including Invisalign comprehensive treatment that addresses the orthodontic needs of teenage patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of seven and ten years, which is a mixture of primary/baby and permanent teeth. This segment's non-comprehensive products comprise Invisalign moderate, lite and express packages, and Invisalign go; and non-case products include retention products, Invisalign training fees, and sales of ancillary products, such as cleaning material, and adjusting tools used by dental professionals during the course of treatment. The Scanners and Services segment offers iTero scanner, a single hardware platform with software options for restorative or orthodontic procedures; restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons; and software for orthodontists for digital records storage, orthodontic diagnosis, and for the fabrication of printed models and retainers. This segment also provides computer-aided design and computer-aided manufacturing services; ancillary products, such as disposable sleeves for the wand; iTero model and dies; third party scanners and digital scans; Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; and TimeLapse technology, which allows doctors or practitioners to compare a patient's historic 3D scans to the present-day scan. The company sells its products in the United States, Switzerland, China, and internationally. Align Technology, Inc. was incorporated in 1997 and is headquartered in Tempe, Arizona.Show more

Revenue $4B +3.5%
EBITDA $753M -4.2%
Net Income $421M -5.3%
EPS (Diluted) 5.62 -3.3%
Gross Margin 70% -0.1%
EBITDA Margin 18.82% -7.5%
Operating Margin 15.19% -8.8%
Net Margin 10.54% -8.6%
ROE 11.26% -8.5%
ROIC 15.86% -7.9%
Debt/Equity 0.03 -11.2%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 15.6% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 10.7%
✓Share count reduced 2.1% through buybacks

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y18.04%

5Y10.69%

3Y0.39%

TTM0.56%

Profit (Net Income) CAGR

10Y11.19%

5Y-0.99%

3Y-18.28%

TTM-14.31%

EPS CAGR

10Y12.25%

5Y0.32%

3Y-16.61%

TTM-11.95%

ROCE

10Y Avg23.99%

5Y Avg17.63%

3Y Avg15.61%

Latest14.83%

Peer Comparison

Orthodontic & Dental Imaging

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ALGNAlign Technology, Inc.	12.3B	171.47	30.51	3.54%	9.5%	9.56%	5.06%	0.03

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	845.49M	1.08B	1.47B	1.97B	2.41B	2.47B	3.95B	3.73B	3.86B	4B
Revenue Growth %	0.11%	0.28%	0.36%	0.33%	0.22%	0.03%	0.6%	-0.06%	0.03%	0.04%
Cost of Goods Sold+	205.38M	264.58M	356.47M	518.63M	662.9M	708.71M	1.02B	1.1B	1.16B	1.2B
COGS % of Revenue	0.24%	0.25%	0.24%	0.26%	0.28%	0.29%	0.26%	0.29%	0.3%	0.3%
Gross Profit+	640.11M	815.29M	1.12B	1.45B	1.74B	1.76B	2.94B	2.63B	2.71B	2.8B
Gross Margin %	0.76%	0.75%	0.76%	0.74%	0.72%	0.71%	0.74%	0.71%	0.7%	0.7%
Gross Profit Growth %	0.11%	0.27%	0.37%	0.3%	0.2%	0.01%	0.66%	-0.1%	0.03%	0.03%
Operating Expenses+	451.48M	566.37M	763.34M	981.3M	1.2B	1.38B	1.96B	1.99B	2.06B	2.19B
OpEx % of Revenue	0.53%	0.52%	0.52%	0.5%	0.5%	0.56%	0.5%	0.53%	0.53%	0.55%
Selling, General & Admin	390.24M	490.65M	665.78M	852.4M	1.07B	1.2B	1.71B	1.67B	1.7B	1.76B
SG&A % of Revenue	0.46%	0.45%	0.45%	0.43%	0.45%	0.49%	0.43%	0.45%	0.44%	0.44%
Research & Development	61.24M	75.72M	97.56M	128.9M	157.36M	175.31M	250.31M	305.26M	346.83M	364.2M
R&D % of Revenue	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.06%	0.08%	0.09%	0.09%
Other Operating Expenses	0	0	0	0	-28.01M	0	0	11.45M	13.32M	64.14M
Operating Income+	188.63M	248.92M	353.61M	466.56M	542.49M	387.17M	976.4M	642.6M	643.34M	607.63M
Operating Margin %	0.22%	0.23%	0.24%	0.24%	0.23%	0.16%	0.25%	0.17%	0.17%	0.15%
Operating Income Growth %	-0.03%	0.32%	0.42%	0.32%	0.16%	-0.29%	1.52%	-0.34%	0%	-0.06%
EBITDA+	206.64M	272.92M	391.35M	521.29M	621.48M	480.71M	1.09B	768.39M	785.74M	752.66M
EBITDA Margin %	0.24%	0.25%	0.27%	0.27%	0.26%	0.19%	0.27%	0.21%	0.2%	0.19%
EBITDA Growth %	-0.02%	0.32%	0.43%	0.33%	0.19%	-0.23%	1.26%	-0.29%	0.02%	-0.04%
D&A (Non-Cash Add-back)	18M	24M	37.74M	54.73M	78.99M	93.54M	108.73M	125.79M	142.4M	145.03M
EBIT	188.63M	248.92M	353.61M	466.56M	514.48M	387.17M	976.4M	654.05M	656.65M	671.76M
Net Interest Income+	-2.53M	4.21M	6.95M	8.58M	12.48M	3.13M	3.1M	5.37M	17.26M	20.22M
Interest Income	0	4.21M	6.95M	8.58M	12.48M	3.13M	3.1M	5.37M	17.26M	20.22M
Interest Expense	2.53M	0	0	0	0	0	0	0	0	0
Other Income/Expense	-2.53M	-6.36M	11.19M	-8.61M	12.63M	-8.22M	36.02M	-43.54M	-2.13M	1.33M
Pretax Income+	186.1M	242.57M	364.8M	457.96M	555.12M	378.95M	1.01B	599.06M	641.2M	608.96M
Pretax Margin %	0.22%	0.22%	0.25%	0.23%	0.23%	0.15%	0.26%	0.16%	0.17%	0.15%
Income Tax+	42.08M	51.2M	130.16M	57.72M	112.35M	-1.4B	240.4M	237.48M	196.15M	187.6M
Effective Tax Rate %	0.77%	0.78%	0.63%	0.87%	0.8%	4.69%	0.76%	0.6%	0.69%	0.69%
Net Income+	144.02M	189.68M	231.42M	400.24M	442.78M	1.78B	772.02M	361.57M	445.05M	421.36M
Net Margin %	0.17%	0.18%	0.16%	0.2%	0.18%	0.72%	0.2%	0.1%	0.12%	0.11%
Net Income Growth %	-0.01%	0.32%	0.22%	0.73%	0.11%	3.01%	-0.57%	-0.53%	0.23%	-0.05%
Net Income (Continuing)	144.02M	189.68M	231.42M	400.24M	442.78M	1.78B	772.02M	361.57M	445.05M	421.36M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.77	2.33	2.83	4.92	5.53	22.41	9.69	4.61	5.81	5.62
EPS Growth %	0%	0.32%	0.21%	0.74%	0.12%	3.05%	-0.57%	-0.52%	0.26%	-0.03%
EPS (Basic)	1.80	2.38	2.89	5.00	5.57	22.55	9.78	4.62	5.82	5.63
Diluted Shares Outstanding	81.52M	81.48M	81.83M	81.36M	80.1M	79.23M	79.67M	78.42M	76.57M	74.99M
Basic Shares Outstanding	80M	79.86M	80.08M	80.06M	79.42M	78.76M	78.92M	78.19M	76.43M	74.88M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	732.01M	952.98M	1.16B	1.3B	1.63B	1.85B	2.49B	2.42B	2.45B	2.49B
Cash & Short-Term Investments	527.29M	640.26M	721.54M	735.36M	868.63M	960.84M	1.17B	999.58M	972.74M	1.04B
Cash Only	167.71M	389.27M	449.51M	636.9M	550.42M	960.84M	1.1B	942.05M	937.44M	1.04B
Short-Term Investments	359.58M	250.98M	272.03M	98.46M	318.2M	0	71.97M	57.53M	35.3M	0
Accounts Receivable	158.55M	247.41M	324.19M	482.31M	616.55M	657.7M	990.81M	1B	1.05B	1.03B
Days Sales Outstanding	68.45	83.63	80.31	89.52	93.5	97.11	91.5	97.75	98.96	93.98
Inventory	19.46M	27.13M	31.69M	55.64M	112.05M	139.24M	230.23M	338.75M	296.9M	254.29M
Days Inventory Outstanding	34.59	37.43	32.45	39.16	61.7	71.71	82.61	112.32	93.79	77.36
Other Current Assets	0	0	0	0	24.42M	61.69M	31.48M	16.76M	77.33M	81.58M
Total Non-Current Assets+	426.62M	443.17M	620.85M	749.98M	867.28M	2.98B	3.45B	3.52B	3.64B	3.72B
Property, Plant & Equipment	136.47M	175.17M	348.79M	521.33M	687.97M	817.27M	1.2B	1.35B	1.41B	1.38B
Fixed Asset Turnover	6.20x	6.16x	4.22x	3.77x	3.50x	3.02x	3.29x	2.76x	2.74x	2.89x
Goodwill	61.07M	61.04M	64.61M	64.03M	63.92M	444.82M	418.55M	407.55M	419.53M	442.63M
Intangible Assets	18.09M	20.95M	24.45M	17.92M	11.77M	130.07M	109.71M	95.72M	82.12M	103.49M
Long-Term Investments	151.37M	104.84M	94.55M	64.89M	5.89M	0	125.32M	41.98M	8.02M	0
Other Non-Current Assets	8.2M	13.32M	38.38M	17.13M	33.72M	35.15M	57.51M	55.83M	128.68M	234.16M
Total Assets+	1.16B	1.4B	1.78B	2.05B	2.5B	4.83B	5.94B	5.95B	6.08B	6.21B
Asset Turnover	0.73x	0.77x	0.83x	0.96x	0.96x	0.51x	0.67x	0.63x	0.63x	0.64x
Asset Growth %	0.17%	0.2%	0.27%	0.15%	0.22%	0.93%	0.23%	0%	0.02%	0.02%
Total Current Liabilities+	271.67M	354.33M	497.82M	692.07M	970.97M	1.33B	1.92B	1.93B	2.07B	2.04B
Accounts Payable	34.35M	28.6M	36.78M	64.26M	87.25M	142.13M	163.89M	127.87M	113.13M	108.69M
Days Payables Outstanding	61.05	39.45	37.66	45.22	48.04	73.2	58.81	42.4	35.74	33.06
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	44.89M	45.88M	5.06M	101.82M	127.61M	183.61M	262.4M	203.97M	237.16M	0
Current Ratio	2.69x	2.69x	2.32x	1.88x	1.68x	1.40x	1.30x	1.26x	1.18x	1.22x
Quick Ratio	2.62x	2.61x	2.26x	1.80x	1.57x	1.29x	1.18x	1.08x	1.04x	1.10x
Cash Conversion Cycle	41.99	81.61	75.1	83.46	107.16	95.62	115.3	167.67	157.02	138.27
Total Non-Current Liabilities+	39.03M	46.43M	129.67M	107.49M	183.56M	270.22M	395.32M	420.7M	386.78M	324.59M
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	43.46M	64.44M	102.66M	100.33M	96.97M	88.21M
Deferred Tax Liabilities	0	0	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	39.03M	46.43M	129.67M	107.49M	140.1M	205.77M	292.67M	320.37M	289.81M	236.37M
Total Liabilities	310.71M	400.76M	627.49M	799.57M	1.15B	1.6B	2.32B	2.35B	2.45B	2.36B
Total Debt+	0	0	0	0	59.2M	86.18M	125.38M	126.91M	126.62M	119.28M
Net Debt	-167.71M	-389.27M	-449.51M	-636.9M	-491.23M	-874.66M	-974M	-815.14M	-810.82M	-924.61M
Debt / Equity	-	-	-	-	0.04x	0.03x	0.03x	0.04x	0.03x	0.03x
Debt / EBITDA	-	-	-	-	0.10x	0.18x	0.12x	0.17x	0.16x	0.16x
Net Debt / EBITDA	-0.81x	-1.43x	-1.15x	-1.22x	-0.79x	-1.82x	-0.90x	-1.06x	-1.03x	-1.23x
Interest Coverage	74.47x	-	-	-	-	-	-	-	-	-
Total Equity+	847.93M	995.39M	1.15B	1.25B	1.35B	3.23B	3.62B	3.6B	3.63B	3.85B
Equity Growth %	0.13%	0.17%	0.16%	0.09%	0.07%	1.4%	0.12%	-0.01%	0.01%	0.06%
Book Value per Share	10.40	12.22	14.06	15.40	16.81	40.82	45.47	45.92	47.42	51.36
Total Shareholders' Equity	847.93M	995.39M	1.15B	1.25B	1.35B	3.23B	3.62B	3.6B	3.63B	3.85B
Common Stock	8K	8K	8K	8K	8K	8K	8K	8K	7K	7K
Retained Earnings	27.39M	131.45M	263.36M	378.14M	439.91M	2.22B	2.62B	2.57B	2.45B	2.48B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-980K	-938K	571K	-2.77M	-688K	43.5M	4.33M	-10.28M	21.17M	5.98M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	238M	247.65M	438.54M	554.68M	747.27M	662.17M	1.17B	568.73M	785.78M	738.23M
Operating CF Margin %	0.28%	0.23%	0.3%	0.28%	0.31%	0.27%	0.3%	0.15%	0.2%	0.18%
Operating CF Growth %	0.05%	0.04%	0.77%	0.26%	0.35%	-0.11%	0.77%	-0.51%	0.38%	-0.06%
Net Income	144.02M	189.68M	231.42M	400.24M	442.78M	1.78B	772.02M	361.57M	445.05M	421.36M
Depreciation & Amortization	18M	24M	37.74M	54.73M	78.99M	93.54M	108.73M	125.79M	142.4M	145.03M
Stock-Based Compensation	52.94M	54.15M	58.85M	70.76M	88.18M	98.43M	114.34M	133.37M	154.03M	173.7M
Deferred Taxes	-1.2M	-513K	17.57M	-15.68M	307K	-1.49B	15.46M	-39.49M	-18.64M	25.76M
Other Non-Cash Items	3.4M	-3.06M	17.07M	25.95M	61.8M	56.21M	7.77M	71.81M	70.83M	44.81M
Working Capital Changes	20.83M	-16.61M	75.89M	18.69M	75.21M	129.69M	154.24M	-84.31M	-7.89M	-72.43M
Change in Receivables	-40.77M	-94.44M	-90.99M	-109.22M	-121.01M	-139.78M	-262.07M	21.55M	-104.61M	-153.49M
Change in Inventory	-3.56M	-7.66M	-5.48M	-24.11M	-58.27M	-29.11M	-112.45M	-130.1M	30.17M	25.05M
Change in Payables	7.58M	-3.4M	8.18M	25.05M	22.1M	52.21M	19.75M	-36.52M	-7.7M	-843K
Cash from Investing+	-166.36M	72.85M	-248.31M	6.93M	-350.44M	-231.51M	-563.43M	-213.32M	-195.94M	-254.91M
Capital Expenditures	-53.45M	-70.58M	-195.69M	-223.31M	-149.71M	-154.92M	-401.1M	-291.9M	-177.72M	-115.58M
CapEx % of Revenue	0.06%	0.07%	0.13%	0.11%	0.06%	0.06%	0.1%	0.08%	0.05%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	46K	-8.21M	-29.43M	30.77M	7.12M	28.08M	-417K	-2.21M	278K	235K
Cash from Financing+	-100.79M	-95.52M	-135.5M	-369.43M	-485.54M	-30.81M	-458.33M	-501.69M	-598.34M	-355.72M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-10.32M	-13.08M	-46.17M	-86.07M	-57.67M	-51.12M	-108.92M	-92.8M	-32.58M	-28.13M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	184.55M	177.08M	242.84M	331.37M	597.56M	507.26M	771.45M	276.83M	608.06M	622.65M
FCF Margin %	0.22%	0.16%	0.16%	0.17%	0.25%	0.21%	0.2%	0.07%	0.16%	0.16%
FCF Growth %	-0.09%	-0.04%	0.37%	0.36%	0.8%	-0.15%	0.52%	-0.64%	1.2%	0.02%
FCF per Share	2.26	2.17	2.97	4.07	7.46	6.40	9.68	3.53	7.94	8.30
FCF Conversion (FCF/Net Income)	1.65x	1.31x	1.90x	1.39x	1.69x	0.37x	1.52x	1.57x	1.77x	1.75x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	40.62M	47.29M	51.23M	0	0	76.33M	203.31M	231.88M	294.57M	177.08M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	17.99%	20.58%	21.57%	33.31%	34.07%	77.55%	22.52%	10.01%	12.31%	11.26%
Return on Invested Capital (ROIC)	22.95%	29.03%	40.58%	53.15%	55.32%	18.07%	29.25%	17.74%	17.21%	15.86%
Gross Margin	75.71%	75.5%	75.81%	73.63%	72.46%	71.33%	74.26%	70.52%	70.08%	70%
Net Margin	17.03%	17.57%	15.71%	20.35%	18.4%	71.84%	19.53%	9.68%	11.52%	10.54%
Debt / Equity	-	-	-	-	0.04x	0.03x	0.03x	0.04x	0.03x	0.03x
Interest Coverage	74.47x	-	-	-	-	-	-	-	-	-
FCF Conversion	1.65x	1.31x	1.90x	1.39x	1.69x	0.37x	1.52x	1.57x	1.77x	1.75x
Revenue Growth	11.01%	27.72%	36.44%	33.47%	22.39%	2.71%	59.9%	-5.51%	3.42%	3.54%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Clear Aligner	-	-	-	-	-	2.1B	3.25B	3.07B	3.2B	3.23B
Clear Aligner Growth	-	-	-	-	-	-	54.52%	-5.37%	4.12%	0.96%
Scanners And Services	-	-	-	-	-	370.48M	705.5M	662.05M	662.93M	768.89M
Scanners And Services Growth	-	-	-	-	-	-	90.43%	-6.16%	0.13%	15.98%
Invisalign Full	800.19M	958.33M	1.31B	1.69B	2.03B	-	-	-	-	-
Invisalign Full Growth	-	19.76%	36.62%	29.19%	19.76%	-	-	-	-	-
Invisalign ExpressLite	45.3M	121.55M	164.15M	275.02M	381.05M	-	-	-	-	-
Invisalign ExpressLite Growth	-	168.32%	35.05%	67.54%	38.55%	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	585.87M	692.25M	836.2M	1.02B	1.16B	1.1B	1.72B	1.66B	1.67B	1.7B
UNITED STATES Growth	-	18.16%	20.79%	22.41%	13.52%	-5.37%	56.82%	-3.73%	0.35%	1.79%
Other International	92.48M	96.57M	181.1M	177.1M	287.66M	363.45M	599.56M	858.5M	1.03B	1.32B
Other International Growth	-	4.41%	87.54%	-2.21%	62.42%	26.35%	64.96%	43.19%	19.75%	28.37%
SWITZERLAND	-	-	-	-	-	809.08M	1.35B	1.22B	1.17B	983.63M
SWITZERLAND Growth	-	-	-	-	-	-	67.26%	-10.13%	-3.93%	-15.81%
CHINA	-	-	-	155.79M	196.73M	199.85M	275.5M	-	-	-
CHINA Growth	-	-	-	-	26.28%	1.58%	37.85%	-	-	-
NETHERLANDS	167.13M	291.05M	456.11M	610.04M	760.44M	-	-	-	-	-
NETHERLANDS Growth	-	74.15%	56.71%	33.75%	24.65%	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Align Technology, Inc. (ALGN) has a price-to-earnings (P/E) ratio of 30.5x. This suggests investors expect higher future growth.

Growth & Financials

Align Technology, Inc. (ALGN) reported $3.98B in revenue for fiscal year 2024. This represents a 730% increase from $479.7M in 2011.

Align Technology, Inc. (ALGN) grew revenue by 3.5% over the past year. Growth has been modest.

Yes, Align Technology, Inc. (ALGN) is profitable, generating $378.4M in net income for fiscal year 2024 (10.5% net margin).

Dividend & Returns

Align Technology, Inc. (ALGN) has a return on equity (ROE) of 11.3%. This is reasonable for most industries.

Align Technology, Inc. (ALGN) generated $566.6M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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