Align Technology, Inc. (ALGN) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Healthcare · Medical Instruments & Supplies
Is Align Technology, Inc. a safe investment right now?
Trading at $195.20, Align Technology, Inc. (ALGN) in the Healthcare sector carries a FairValueLabs fair value estimate of $227.52 — a margin of safety of 14.2%, placing it in the Buy Zone. An Altman Z-Score of 5.48 confirms the company is in the safe zone — financial distress is unlikely near-term. Our moat rating stands at 3.1/5 stars (Narrow moat), indicating moderate competitive positioning.
Could Align Technology, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 5.48 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ALGN's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1117 | 1.2 | 0.13 |
| B · Retained Earnings / Total Assets | RE / TA | 0.3953 | 1.4 | 0.55 |
| C · EBIT / Total Assets | EBIT / TA | 0.0939 | 3.3 | 0.31 |
| D · Market Cap / Total Liabilities | MCap / TL | 6.3994 | 0.6 | 3.84 |
| E · Revenue / Total Assets | Rev / TA | 0.6473 | 1.0 | 0.65 |
How has ALGN's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 5.27 | Safe |
| 2023 | 5.05 | Safe |
| 2024 | 5.2 | Safe |
| 2025 | 5.48 | Safe |
Source: Calculated from ALGN's latest 10-K filing on SEC EDGAR.
What is Align Technology, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $7.90 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $5.65 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $11.29 | 14 analysts consensus |
| Trailing P/E | 33.9x | Current market pricing |
| Fair P/E (β discount) | 28.8x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $205.50 (14 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Align Technology, Inc. have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up ALGN's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ALGN's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 18.2% | — |
| 2023 | 18.1% | Stable |
| 2024 | 17.4% | Stable |
| 2025 | 14.5% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Align Technology, Inc.'s dividend safe?
Align Technology, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $4.0B | $4.0B | $3.7B | Rising |
| Net Income | $0.4B | $0.4B | $0.4B | Rising |
| Free Cash Flow | $0.5B | $0.6B | $0.3B | Rising |
| Gross Margin | 67.2% | 70.0% | 70.5% | Stable |
Common questions about Align Technology, Inc.
Is Align Technology, Inc. at risk of going bankrupt?
Align Technology, Inc.'s Altman Z-Score of 5.48 places it in the safe zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Align Technology, Inc.'s estimated fair value?
Our valuation model estimates Align Technology, Inc.'s fair value at $227.52 per share. The current margin of safety is 14.2%. This estimate uses a PE-based approach with analyst consensus earnings.
Does Align Technology, Inc. have a competitive moat?
Align Technology, Inc. receives a moat rating of 3.1 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Does Align Technology, Inc. pay a dividend?
Align Technology, Inc. does not currently pay a regular dividend, or has suspended its dividend. Check the dividend safety section for the latest status.
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 20, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ALGN analysis methodology: How we calculate fair value, Z-Scores, and moat ratings