Recent News
On July 30, 2025 Align announced a restructuring program that will reduce global headcount, optimize manufacturing footprint and incur approximately $150 million–$170 million of one‑time charges in H2 2025; the company expects roughly $50 million–$60 million of those charges in Q3 2025. The release also noted commercial rollouts in Malaysia for the Invisalign System with mandibular advancement and the Invisalign Palatal Expander, plus a July collaboration tied to a branded placement in a major film opening in August 2025.
Technical Analysis
ADX & Directional Indicators: ADX at 40.64 signals a very strong trend. DI+ sits at 11.49 and trends decreasing, while DI– sits at 30.97 and shows a dip-and-reversal pattern; both directional readings imply strengthening downside pressure that supports a bearish near-term price bias.
MACD: MACD equals -5.86 with a peak-and-reversal trend, indicating bearish momentum; nevertheless the MACD currently sits above its signal line (-6.31), which registers as a short-lived bullish crossover signal amid an overall weakening momentum backdrop.
MRO: MRO at -32.44 indicates price sits below the WMDST target and therefore carries potential upward pressure toward that target; the MRO trend registers a peak-and-reversal, tempering the strength of that upside potential in the immediate term.
RSI & Volatility: RSI at 39.77 with a peak-and-reversal trend indicates bearish momentum without oversold extremity. Volatility metrics show 42‑day volatility of 6% and 52‑week volatility of 3%, implying recent moves carry higher short-term amplitude versus yearlong baseline.
Price vs Moving Averages and Bands: Last close at $124.88 sits below the 20‑day average $131.62, 50‑day average $149.60 and 200‑day average $180.77, a multi‑timeframe bearish configuration. Price trades near the lower Bollinger band (lower 1x = $127.99, lower 2x = $124.37), consistent with compression near support. The 12‑day EMA trends down and Ichimoku lines (Tenkan $131.19, Kijun $136.11) remain above price, reinforcing short-term resistance ahead.
Volume & Beta: Daily volume near 1.59M exceeds the 10‑day average of ~1.18M, indicating elevated participation on recent moves. Short‑term beta (42‑day) at 1.95 shows high sensitivity to market swings, while 52‑week beta at 1.30 reflects above‑average market correlation over a longer horizon.
Fundamental Analysis
Profitability & Margins: Total revenue recorded at $1,012,449,000. Operating income equals $163,033,000, delivering an operating (EBIT) margin of 16.103%, which improved QoQ by 16.57% but declined YoY by 7.048%. That EBIT margin sits below the industry peer mean of 18.499% and below the industry peer median of 17.478% while remaining above the industry peer low.
Cash Flow & Liquidity: Operating cash flow equals $128,650,000 and free cash flow equals $107,171,000, producing a free cash flow yield of 0.78% and a cash conversion ratio of 2.23709. Cash and short‑term investments total $901,157,000, with a cash ratio of 45.16% and a current ratio of 1.2268, indicating liquidity that can fund restructuring actions without immediate financing stress.
Capital Structure & Coverage: Total debt stands at $123,020,000, producing a debt-to-assets ratio of 1.978% and debt-to-equity of 3.144%; interest coverage measures at 152.23x, demonstrating substantial ability to service interest expense.
Returns & Growth: Return on assets registers 2.023% and return on equity 3.185%, each improving QoQ and YoY. Revenue growth year‑over‑year equals 8.831% while quarter‑over‑quarter revenue growth shows a -311.416% figure in the provided series; earnings growth year‑over‑year equals 33.954% while QoQ earnings growth contracted by 233.026% in the supplied metrics. Gross margin holds near 69.941%.
Valuation & Earnings Detail: Trailing EPS registered at $2.49 versus an estimate of $2.57, producing an EPS surprise of -3.11%. Trailing P/E approximates 76.09x and forward P/E about 70.70x. Enterprise value-to-revenue registers near 12.80; enterprise multiple stands near 63.63x. WMDST values the stock as under‑valued under the current model, noting that the company’s margin targets from restructuring form the principal catalyst for re‑rating.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 874.1 M |
| Operating Cash Flow | $ 128.7 M | |
| Capital Expenditures | $ -21.48 M | |
| Change In Working Capital | $ -64.94 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 28.3 M | |
| End Period Cash Flow | $ 902.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.0 B | |
| Forward Revenue | $ 377.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 304.3 M | |
| Depreciation | $ 40.6 M | |
| Depreciation and Amortization | $ 40.6 M | |
| Research and Development | $ 96.4 M | |
| Total Operating Expenses | $ 849.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 708.1 M | |
| EBITDA | $ 203.6 M | |
| EBIT | $ 163.0 M | |
| Operating Income | $ 163.0 M | |
| Interest Income | $ 2.9 M | |
| Interest Expense | — | |
| Net Interest Income | $ 2.9 M | |
| Income Before Tax | $ 173.5 M | |
| Tax Provision | $ 48.9 M | |
| Tax Rate | 28.186 % | |
| Net Income | $ 124.6 M | |
| Net Income From Continuing Operations | $ 124.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.57 | |
| EPS Actual | $ 2.49 | |
| EPS Difference | $ -0.08 | |
| EPS Surprise | -3.113 % | |
| Forward EPS | $ 2.56 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.2 B | |
| Intangible Assets | $ 594.6 M | |
| Net Tangible Assets | $ 3.3 B | |
| Total Current Assets | $ 2.4 B | |
| Cash and Short-Term Investments | $ 901.2 M | |
| Cash | $ 901.2 M | |
| Net Receivables | $ 1.1 B | |
| Inventory | $ 243.8 M | |
| Long-Term Investments | $ 250.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 114.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 2.0 B | |
| Net Debt | — | |
| Total Debt | $ 123.0 M | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 3.9 B | |
| Retained Earnings | $ 2.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 53.98 | |
| Shares Outstanding | 72.486 M | |
| Revenue Per-Share | $ 13.97 | |
| VALUATION | Market Capitalization | $ 13.7 B |
| Enterprise Value | $ 13.0 B | |
| Enterprise Multiple | 63.626 | |
| Enterprise Multiple QoQ | -10.575 % | |
| Enterprise Multiple YoY | -27.048 % | |
| Enterprise Multiple IPRWA | high: 123.29 median: 110.415 mean: 94.621 ALGN: 63.626 low: -147.649 |
|
| EV/R | 12.796 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.589 | |
| Asset To Liability | 2.697 | |
| Debt To Capital | 0.03 | |
| Debt To Assets | 0.02 | |
| Debt To Assets QoQ | 1.854 % | |
| Debt To Assets YoY | 295.6 % | |
| Debt To Assets IPRWA | high: 0.843 mean: 0.304 median: 0.292 ALGN: 0.02 low: 0.0 |
|
| Debt To Equity | 0.031 | |
| Debt To Equity QoQ | 0.64 % | |
| Debt To Equity YoY | 283.883 % | |
| Debt To Equity IPRWA | high: 3.369 mean: 0.642 median: 0.579 ALGN: 0.031 low: -0.395 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.51 | |
| Price To Book QoQ | 1.155 % | |
| Price To Book YoY | -32.171 % | |
| Price To Book IPRWA | high: 16.759 median: 6.869 mean: 6.33 ALGN: 3.51 low: -5.981 |
|
| Price To Earnings (P/E) | 76.087 | |
| Price To Earnings QoQ | -10.063 % | |
| Price To Earnings YoY | -29.561 % | |
| Price To Earnings IPRWA | high: 249.6 mean: 137.484 median: 121.658 ALGN: 76.087 low: -167.592 |
|
| PE/G Ratio | 4.502 | |
| Price To Sales (P/S) | 13.564 | |
| Price To Sales QoQ | 0.896 % | |
| Price To Sales YoY | -28.257 % | |
| Price To Sales IPRWA | high: 73.117 mean: 32.726 median: 24.499 ALGN: 13.564 low: 0.6 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 70.7 | |
| Forward PE/G | 4.183 | |
| Forward P/S | 36.363 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.054 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.164 | |
| Asset Turnover Ratio QoQ | 3.352 % | |
| Asset Turnover Ratio YoY | -1.622 % | |
| Asset Turnover Ratio IPRWA | high: 0.412 ALGN: 0.164 median: 0.124 mean: 0.121 low: 0.008 |
|
| Receivables Turnover | 0.93 | |
| Receivables Turnover Ratio QoQ | -2.331 % | |
| Receivables Turnover Ratio YoY | -10.929 % | |
| Receivables Turnover Ratio IPRWA | high: 3.133 mean: 1.747 median: 1.672 ALGN: 0.93 low: 0.374 |
|
| Inventory Turnover | 1.241 | |
| Inventory Turnover Ratio QoQ | 3.917 % | |
| Inventory Turnover Ratio YoY | 9.494 % | |
| Inventory Turnover Ratio IPRWA | high: 2.014 ALGN: 1.241 mean: 0.639 median: 0.568 low: 0.084 |
|
| Days Sales Outstanding (DSO) | 98.158 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 136.363 | |
| Cash Conversion Cycle Days QoQ | -0.229 % | |
| Cash Conversion Cycle Days YoY | 0.538 % | |
| Cash Conversion Cycle Days IPRWA | high: 448.876 mean: 171.549 median: 167.784 ALGN: 136.363 low: -175.55 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.237 | |
| CapEx To Revenue | -0.021 | |
| CapEx To Depreciation | -0.529 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.9 B | |
| Net Invested Capital | $ 3.9 B | |
| Invested Capital | $ 3.9 B | |
| Net Tangible Assets | $ 3.3 B | |
| Net Working Capital | $ 452.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.452 | |
| Current Ratio | 1.227 | |
| Current Ratio QoQ | 1.684 % | |
| Current Ratio YoY | 3.749 % | |
| Current Ratio IPRWA | high: 19.146 mean: 2.569 median: 1.718 ALGN: 1.227 low: 0.027 |
|
| Quick Ratio | 1.105 | |
| Quick Ratio QoQ | 2.034 % | |
| Quick Ratio YoY | 4.679 % | |
| Quick Ratio IPRWA | high: 18.509 mean: 1.895 median: 1.167 ALGN: 1.105 low: 0.315 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.604 | |
| Cost Of Debt | 0.637 % | |
| Interest Coverage Ratio | 152.225 | |
| Interest Coverage Ratio QoQ | 20.517 % | |
| Interest Coverage Ratio YoY | 171.688 % | |
| Interest Coverage Ratio IPRWA | ALGN: 152.225 high: 52.298 mean: 15.458 median: 11.456 low: -88.481 |
|
| Operating Cash Flow Ratio | 0.052 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 36.575 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.905 % | |
| Revenue Growth | 3.389 % | |
| Revenue Growth QoQ | -311.416 % | |
| Revenue Growth YoY | 8.831 % | |
| Revenue Growth IPRWA | high: 26.158 % median: 8.281 % mean: 6.362 % ALGN: 3.389 % low: -19.222 % |
|
| Earnings Growth | 16.901 % | |
| Earnings Growth QoQ | -233.026 % | |
| Earnings Growth YoY | 33.954 % | |
| Earnings Growth IPRWA | high: 166.667 % ALGN: 16.901 % mean: 11.202 % median: 9.851 % low: -180.612 % |
|
| MARGINS | ||
| Gross Margin | 69.941 % | |
| Gross Margin QoQ | 0.706 % | |
| Gross Margin YoY | -0.455 % | |
| Gross Margin IPRWA | high: 91.006 % ALGN: 69.941 % median: 63.683 % mean: 62.065 % low: -7.085 % |
|
| EBIT Margin | 16.103 % | |
| EBIT Margin QoQ | 16.57 % | |
| EBIT Margin YoY | -7.048 % | |
| EBIT Margin IPRWA | high: 33.709 % mean: 18.499 % median: 17.478 % ALGN: 16.103 % low: -200.872 % |
|
| Return On Sales (ROS) | 16.103 % | |
| Return On Sales QoQ | 16.57 % | |
| Return On Sales YoY | -7.048 % | |
| Return On Sales IPRWA | high: 39.857 % mean: 19.021 % median: 18.374 % ALGN: 16.103 % low: -193.243 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 107.2 M | |
| Free Cash Flow Yield | 0.78 % | |
| Free Cash Flow Yield QoQ | 275.0 % | |
| Free Cash Flow Yield YoY | 42.596 % | |
| Free Cash Flow Yield IPRWA | high: 4.685 % ALGN: 0.78 % mean: 0.674 % median: 0.66 % low: -19.501 % |
|
| Free Cash Growth | 291.321 % | |
| Free Cash Growth QoQ | -425.168 % | |
| Free Cash Growth YoY | -35.451 % | |
| Free Cash Growth IPRWA | high: 310.383 % ALGN: 291.321 % mean: 81.236 % median: 14.619 % low: -376.098 % |
|
| Free Cash To Net Income | 0.86 | |
| Cash Flow Margin | 10.155 % | |
| Cash Flow To Earnings | 0.825 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.023 % | |
| Return On Assets QoQ | 33.62 % | |
| Return On Assets YoY | 29.018 % | |
| Return On Assets IPRWA | high: 16.404 % ALGN: 2.023 % mean: 1.743 % median: 1.686 % low: -26.44 % |
|
| Return On Capital Employed (ROCE) | 3.86 % | |
| Return On Equity (ROE) | 0.032 | |
| Return On Equity QoQ | 29.63 % | |
| Return On Equity YoY | 23.93 % | |
| Return On Equity IPRWA | high: 0.175 ALGN: 0.032 median: 0.029 mean: 0.028 low: -0.524 |
|
| DuPont ROE | 3.234 % | |
| Return On Invested Capital (ROIC) | 2.992 % | |
| Return On Invested Capital QoQ | 26.405 % | |
| Return On Invested Capital YoY | -118.802 % | |
| Return On Invested Capital IPRWA | high: 5.672 % ALGN: 2.992 % median: 2.571 % mean: 2.21 % low: -19.888 % |
|