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Align TechnologyXTER:AFW +2.42%89 Return-on-Tangible-Asset is 7.99% as of Mar. 2026, which is 49% below its 10-year median of 15.62. GuruFocus rates XTER:AFW with a GF Score™ of 89/100 and a GF Value™ of €219.73 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 856 Medical Devices & Instruments companies, Align Technology ranks better than 75.12% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Align Technology's annualizedNet Income for the quarter that ended in Mar. 2026 was €390 Mil. Align Technology's average total tangible assets for the quarter that ended in Mar. 2026 was €4,881 Mil. Therefore, Align Technology's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.99%.
The historical rank and industry rank for Align Technology's Return-on-Tangible-Asset or its related term are showing as below:
XTER:AFW'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.66 Med: 15.62 Max: 53.17
Current: 7.63
During the past 13 years, Align Technology's highest Return-on-Tangible-Asset was 53.17%. The lowest was 6.66%. And the median was 15.62%.
XTER:AFW's Return-on-Tangible-Asset is ranked better than 75.12% of 856
companies
in the Medical Devices & Instruments industry
Industry Median: 0.665
vs XTER:AFW: 7.63
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Align Technology Return-on-Tangible-Asset Related Terms
Align Technology Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Align Technology's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:AFW vs SOLV, COO, BAX: Return-on-Tangible-Asset Comparison
For the Medical Instruments & Supplies subindustry, Align Technology's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Align Technology Return-on-Tangible-Asset vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Align Technology's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.99% mean?
Align Technology (XTER:AFW) has a Return-on-Tangible-Asset of 7.99% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Align Technology and its competitors. This is 49% below median its historical median of 15.62. Over the past decade, Align Technology's Return-on-Tangible-Asset has ranged from 6.66 to 53.17. According to the industry distribution chart, Align Technology ranks #213 out of 856 companies in the Medical Devices & Instruments industry, placing it in the top 24.9%.
Is Align Technology's Return-on-Tangible-Asset too high?
Align Technology's current Return-on-Tangible-Asset of 7.99% is 49% below median its 10-year median of 15.62. Over the past 10 years, this metric has ranged from a low of 6.66 to a high of 53.17. The Medical Devices & Instruments industry median Return-on-Tangible-Asset is 0.67. Align Technology's value of 7.99% is 1101.5% above this industry median. Based on the distribution chart, Align Technology ranks #213 out of 856 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Align Technology has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Align Technology's Return-on-Tangible-Asset compare to SOLV and COO?
According to the Medical Devices & Instruments industry distribution chart, Align Technology ranks #213 out of 856 companies for Return-on-Tangible-Asset. This places Align Technology in the top 25% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.67. Align Technology's value of 7.99% is 1101.5% above this benchmark. Historically, Align Technology's own Return-on-Tangible-Asset has ranged from 6.66 to 53.17 over the past decade. While the company's 10-year median is 15.62 vs. the industry median of 0.67, Align Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Medical Devices & Instruments company?
The median Return-on-Tangible-Asset among Medical Devices & Instruments companies is 0.67, based on 856 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Align Technology's current Return-on-Tangible-Asset of 7.99% is 1101.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Align Technology and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Asset is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Align Technology's current Return-on-Tangible-Asset is 7.99%, which is 49% below median its own 10-year median of 15.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Align Technology stock overvalued right now?
Based on GuruFocus' analysis, Align Technology (XTER:AFW) is currently considered Modestly Undervalued. The stock's GF Value™ is €219.73, compared to a current price of €163.15 — trading 25.7% below its estimated fair value. The current Return-on-Tangible-Asset is 7.99%, which is 49% below median its 10-year median of 15.62 and 1101.5% above the Medical Devices & Instruments industry median of 0.67. Align Technology's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Align Technology (XTER:AFW), the current Return-on-Tangible-Asset is 7.99% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Align Technology (XTER:AFW) Overvalued in 2026?
Based on GuruFocus' analysis, Align Technology stock appears to be undervalued.
The current stock price of €163.15 is trading 25.7% below its estimated GF Value™ of €219.73.
GuruFocus considers Align Technology to be Modestly Undervalued.
Key valuation signals for XTER:AFW:
Return-on-Tangible-Asset: 7.99% (49% below median its 10-year median of 15.62)
GF Value™: €219.73 vs. price of €163.15 (25.7% below fair value)
Industry Position: 1101.5% above the Medical Devices & Instruments median (#213 of 856)
No single metric tells the full story. See the XTER:AFW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans, and iTero scans make up over half of these scans.
89GF Score
Get the complete analysis for XTER:AFW
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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