Align Technology Price To Book vs. Net Income
| ALGN Stock | USD 182.16 0.48 0.26% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Return On Equity | 0.08 | 0.1013 |
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For Align Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Align Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Align Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Align Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Align Technology over time as well as its relative position and ranking within its peers.
Align Technology's Revenue Breakdown by Earning Segment
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Align Technology Revenue Breakdown by Earning Segment
By analyzing Align Technology's earnings estimates, investors can diagnose different trends across Align Technology's analyst sentiment over time as well as compare current estimates against different timeframes.
Will Health Care Equipment & Supplies sector continue expanding? Could Align diversify its offerings? Factors like these will boost the valuation of Align Technology. If investors know Align will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Align Technology data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.356 | Earnings Share 5.65 | Revenue Per Share | Quarterly Revenue Growth 0.053 | Return On Assets |
Investors evaluate Align Technology using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Align Technology's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Align Technology's market price to deviate significantly from intrinsic value.
Understanding that Align Technology's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Align Technology represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Align Technology's market price signifies the transaction level at which participants voluntarily complete trades.
Align Technology Net Income vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Align Technology's current stock value. Our valuation model uses many indicators to compare Align Technology value to that of its competitors to determine the firm's financial worth. Align Technology is rated fifth in price to book category among its peers. It also is rated fifth in net income category among its peers making up about 126,796,342 of Net Income per Price To Book. At this time, Align Technology's Net Income is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Align Technology's earnings, one of the primary drivers of an investment's value.Align Technology's Earnings Breakdown by Geography
Align Net Income vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Align Technology |
| = | 3.24 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Align Technology |
| = | 410.35 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Align Net Income Comparison
Align Technology is currently under evaluation in net income category among its peers.
Align Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Align Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Align Technology will eventually generate negative long term returns. The profitability progress is the general direction of Align Technology's change in net profit over the period of time. It can combine multiple indicators of Align Technology, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 75.4 M | 79.2 M | |
| Operating Income | 616.2 M | 647 M | |
| Income Before Tax | 585.3 M | 614.6 M | |
| Total Other Income Expense Net | -30.9 M | -29.4 M | |
| Net Income | 410.4 M | 235.2 M | |
| Income Tax Expense | 174.9 M | 183.7 M | |
| Net Income Applicable To Common Shares | 415.8 M | 314 M | |
| Net Income From Continuing Ops | 484.6 M | 404.7 M | |
| Non Operating Income Net Other | 41.4 M | 43.5 M | |
| Interest Income | 23.3 M | 24.4 M | |
| Net Interest Income | 23.3 M | 24.4 M | |
| Change To Netincome | 190.5 M | 200.1 M | |
| Net Income Per Share | 5.66 | 5.94 | |
| Income Quality | 1.45 | 1.76 | |
| Net Income Per E B T | 0.70 | 1.22 |
Align Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Align Technology. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Align Technology position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Align Technology's important profitability drivers and their relationship over time.
Align Technology Earnings per Share Projection vs Actual
Use Align Technology in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Align Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Align Technology will appreciate offsetting losses from the drop in the long position's value.Align Technology Pair Trading
Align Technology Pair Trading Analysis
The ability to find closely correlated positions to Align Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Align Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Align Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Align Technology to buy it.
The correlation of Align Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Align Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Align Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Align Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Align Technology position
In addition to having Align Technology in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. To learn how to invest in Align Stock, please use our How to Invest in Align Technology guide.You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Align Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Align Technology at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Align Technology's income statement, its balance sheet, and the statement of cash flows.