Last Updated: 12 Nov 2024
Executive Summary
Align Technology Inc. (ALGN) is a leading manufacturer of 3D digital scanners and Invisalign clear aligners used in orthodontics. The company has a strong market position and is expected to continue to benefit from the growing demand for orthodontic treatments. While the stock has recently experienced a pullback, it is trading at a discount to its intrinsic value and is supported by positive analyst recommendations.
Company Overview
Align Technology was founded in 1997 and is headquartered in San Jose, California. The company's primary products include the iTero Element 5D scanner and the Invisalign system. Invisalign is a clear aligner system that is used to straighten teeth without the need for traditional braces.
Align Technology has a global presence and sells its products in over 100 countries. The company has a strong sales force and a network of over 200,000 orthodontists and dentists.
Fundamental Analysis
Align Technology is a financially sound company with strong profitability and cash flow. The company has a trailing twelve-month revenue of $3.96 billion and an EBITDA of $820.1 million. The company's profit margin is 11.2% and its operating margin is 16.6%.
Align Technology has a strong balance sheet with $1.4 billion in cash and equivalents and $1.1 billion in debt. The company's debt-to-equity ratio is 0.38.
Technical Analysis
Align Technology's stock price has been in a downtrend since November 2021. The stock has recently broken below its 50-day moving average and is now trading near its 200-day moving average.
The stock's technical indicators are bearish. The relative strength index (RSI) is below 50 and the moving average convergence divergence (MACD) is below its signal line.
Short Term Outlook
Align Technology's stock is likely to continue to trade in a downtrend in the short term. The stock is trading below its moving averages and its technical indicators are bearish.
However, the stock is trading at a discount to its intrinsic value and is supported by positive analyst recommendations. Therefore, investors may want to consider buying the stock on a pullback.
Long Term Outlook
Align Technology is a well-positioned company with a strong market position and a growing demand for its products. The company is expected to continue to grow its revenue and earnings in the long term.
The stock's long-term outlook is positive. The stock is trading at a discount to its intrinsic value and is supported by positive analyst recommendations. Therefore, investors may want to consider buying the stock for the long term.
Analyst Recommendations
Align Technology is rated as a "Strong Buy" by 4 analysts, a "Buy" by 4 analysts, and a "Hold" by 6 analysts. The average analyst target price is $258.34.
