Yahoo Finance Brief Commentary On Align Technology, Inc.'s (NASDAQ:ALGN) Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Align Technology, Inc. (NASDAQ:ALGN), there's is a financially-sound company with a strong track record and an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Align Technology here.
Outstanding track record with excellent balance sheet
ALGN delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 30%, which is an notable feat for the company.
ALGN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ALGN has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ALGN currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$14b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Next Steps:
For Align Technology, I've compiled three essential factors you should further research:
Valuation: What is ALGN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ALGN is currently mispriced by the market.
Dividend Income vs Capital Gains: Does ALGN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ALGN as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALGN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
