Align Technology Inc (ALGN, Financial), a leading player in the Medical Devices & Instruments industry, is currently trading at $385.94 with a market cap of $29.25 billion. The company's stock price has seen a gain of 13.56% today and a 14.02% increase over the past four weeks. In this article, we will delve into the company's GF Score of 99/100, which indicates the highest outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which evaluates a company's financial strength, profitability, growth, GF value, and momentum.
Financial Strength Analysis
Align Technology Inc's Financial Strength rank stands at 8/10. This score is derived from several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. The company's debt to revenue ratio is 0.03, indicating a low debt burden. The Altman Z-Score is 8.01, suggesting a strong financial position.
Profitability Rank Analysis
The company's Profitability Rank is 10/10, the highest possible score. This rank is based on factors such as operating margin, Piotroski F-Score, and the trend of the operating margin. Align Technology Inc's operating margin is 15.91%, and its Piotroski F-Score is 5. The company has shown consistent profitability over the past 10 years.
Growth Rank Analysis
Align Technology Inc's Growth Rank is 10/10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 22.30%, and its 3-year revenue growth rate is 16.60%. The 5-year EBITDA growth rate is 17.80%, further demonstrating the company's robust growth.
GF Value Rank Analysis
The company's GF Value Rank is 10/10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Align Technology Inc's Momentum Rank is 9/10, indicating strong momentum in the company's stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
When compared to its main competitors, Align Technology Inc holds a strong position. Steris PLC (STE, Financial) has a GF Score of 94, Zimmer Biomet Holdings Inc (ZBH, Financial) has a GF Score of 70, and Insulet Corp (PODD, Financial) has a GF Score of 86.
In conclusion, Align Technology Inc's overall GF Score of 99/100 suggests a high potential for outperformance. The company's strong financial strength, profitability, growth, GF value, and momentum indicate a promising future performance. However, investors should continue to monitor the company's performance and market trends.