By interpreting massive volumes of data, discovering patterns, and spotting trends in real-time, AI-powered technologies help investors make shrewd judgments. Our AI-driven analytics recently recognized ALGN based on our 90-day AI-powered prediction published every trading day yielding a significant profit of 48.2%. ALGN stands for Align Technology, a medical device firm that creates, manufactures, and markets a system of clear aligner therapy, intraoral scanners, and computer-aided design and manufacturing services. Align Technology is best known for its clear aligners, Invisalign, which have gained significant market share in recent years due to their revolutionary design and effectiveness in correcting dental malocclusions. The company also provides a variety of digital scanning devices, such as iTero, which is used to generate precise digital impressions of patients' teeth, making orthodontic treatments more efficient and convenient for both patients and dental professionals. The company will be announcing 1Q23 results on April 26th, 2023.
The company was established in 1997, with its headquarters in San Jose, California. Align Technology has a global presence, serving patients and dental professionals in over 100 countries. The organization works with dental specialists to create and produce customized orthodontic treatments that meet the needs of each unique patient. Over the years, the company has garnered various honors for its unique goods and services, including Forbes magazine's designation as one of the world's most inventive companies.
ALGN Prediction Powered By Machine Learning Algorithms
The emergence of artificial intelligence (AI) has caused a great deal of disruption across almost every industry including the financial sector. In the contemporary digital era, the potential of artificial intelligence (AI) to give real-time information has totally transformed the investment sector. Using AI-powered tools, investors may review massive amounts of data, identify patterns and trends, and make informed decisions in real-time. Below is the signal for the stock pick ALGN for the 90-day stock projection on Jan 24th, 2023.
The opening price on the date of the forecast was $237.78 and closed at $352.39 making a rounded profit of 48.2% for subscribers.
ALGN Competitive Analysis
Align Technology is the definitive leader in the transparent aligners market, with Invisalign accounting for over 90% of the market share. The company's focus on innovation and product development, as well as its strong brand recognition, have helped it maintain its market leadership position. That being said, the competition is vying for market share with numerous companies offering similar products and services. Some of the most notable competitors include 3M Unitek, Danaher Corporation (DHR), Dentsply Sirona (XRAY), and Straumann Group (STMN).
3M Unitek is a subsidiary of 3M (MMM) that specializes in orthodontic products and services. The company offers a range of products, including metal and ceramic braces, aligners, and clear brackets. However, its clear aligners do not offer the same level of customization and convenience as Invisalign, which has helped Align Technology maintain its market leadership position.
Danaher Corporation (DHR) is a diversified conglomerate that owns several companies in the dental industry. One of its subsidiaries, Ormco Corporation, specializes in orthodontic products, including metal and ceramic braces, and clear aligners. Ormco's clear aligners, known as Spark, offer similar functionality as Invisalign, but its market share is relatively small compared to Align Technology.
Dentsply Sirona (XRAY) is a dental technology company that offers a range of orthodontic products, including metal and ceramic braces, clear aligners, and digital scanning systems. Its clear aligners, known as SureSmile, use a 3D imaging system to create customized aligners for patients. While SureSmile has gained some market share, it still lags behind Invisalign in terms of market penetration.
Straumann Group (STMN) is a Swiss-based dental technology company that offers a range of orthodontic products, including clear aligners, metal and ceramic braces, and digital scanning systems. Its clear aligners, known as SmileTRU, offer similar functionality as Invisalign, but its market share is relatively small compared to Align Technology.
Reliance on 3rd-Party Manufacturing
The company's reliance on third-party manufacturers for some of its products, including Invisalign clear aligners, has resulted in supply chain disruptions, which can have an adverse effect on the company's profitability. These manufacturers are located in various countries worldwide, including the United States, Mexico, Costa Rica, and China. While the use of third-party manufacturers allows the company to leverage its expertise and cost-effectiveness, it also introduces the risk of supply chain disruptions.
One notable example of supply chain disruption occurred in early 2020 when the COVID-19 pandemic caused widespread disruptions in global supply chains. Align Technology's third-party manufacturers in China had to temporarily shut down production due to government-mandated lockdowns, resulting in delays in the production and delivery of Invisalign clear aligners. As a result, Align Technology's revenue growth was lower than expected in the first quarter of 2020.
To mitigate the impact of supply chain disruptions, Align Technology has implemented several measures. For instance, the company has diversified its supplier base to reduce its reliance on any single supplier. Additionally, the company has developed contingency plans to ensure a steady supply of its products in the event of any disruptions. Furthermore, Align Technology has established close working relationships with its suppliers, providing them with training, support, and resources to ensure they meet the company's quality and production standards.
In response to the COVID-19 pandemic, Align Technology took several steps to mitigate supply chain disruptions. For instance, the company accelerated the launch of its new digital platform, Invisalign Virtual Care, which allows dental professionals to remotely monitor and treat patients, reducing the need for physical appointments. Additionally, the company increased its inventory levels and reduced its production targets to ensure that it could meet customer demand despite any potential disruptions.
Invisalign Virtual Care
The launch of Invisalign Virtual Care in response to the COVID-19 pandemic was a strategic move by Align Technology to mitigate supply chain disruptions and ensure that its customers could continue their treatment uninterrupted. The platform enabled dental professionals to provide care remotely, reducing the need for physical appointments and minimizing the risk of virus transmission. Invisalign Virtual Care is a digital platform that allows dental professionals to remotely monitor and treat patients who are undergoing treatment with Invisalign clear aligners. The platform enables dental professionals to communicate with their patients via a secure online portal, review their treatment progress, and provide guidance and support as needed. Patients can upload photos of their teeth and aligners, and dental professionals can provide real-time feedback and recommendations.
In addition to its role in mitigating the impact of the pandemic, Invisalign Virtual Care has had other benefits for both Align Technology and its customers. The platform enables dental professionals to provide more efficient and personalized care to their patients, resulting in better treatment outcomes and greater patient satisfaction, which is crucial for a market leader in maintaining its dominance. Additionally, the platform can potentially reduce the cost of treatment and increase access to care, particularly for patients who live in remote areas or have mobility issues. By providing a more convenient and personalized treatment experience. the digital platform has enabled the company to continue generating revenue despite supply chain disruptions and reduced demand for physical appointments.
Last Reported Quarter Results for ALGN
On February 1st, 2023, The global medical device company announced its financial results for the fourth quarter and year ended December 31, 2022. In Q4’22, total revenues were $901.5 million, an increase of 1.3% sequentially and a decline of 12.6% year-over-year. Meanwhile, Clear Aligner revenues were $731.7 million, flat sequentially and down 10.3% year-over-year, and Imaging Systems and CAD/CAM Services revenues were $169.9 million, up 7.8% sequentially and down 21.3% year-over-year. The 2022 total revenues of $3.7 billion included Clear Aligner revenues of $3.1 billion and Systems and Services revenues of $662.1 million. However, the 2022 revenues were unfavorably impacted by foreign exchange of approximately $193.8 million compared to 2021.
Align Technology's board of directors has authorized a new $1 billion stock repurchase program to succeed the current $1 billion program, which is expected to be completed in Q2 2023. Moreover, in 2022, the company repurchased $475 million of common stock, and it has plans to repurchase $250 million more starting in Q1 2023, expecting to entirely complete its 2021 $1 Billion Stock Repurchase Program in Q2 2023.
Align's 2022 operating margin was 17.2%, and its non-GAAP operating margin was 21.5%, while diluted net income per share was $4.61, and non-GAAP diluted net income per share was $7.76. However, the 2022 operating margin was unfavorably impacted by foreign exchange of approximately 2.8 points compared to 2021. In Q4'22, Align reported a diluted net income per share of $0.54 and non-GAAP diluted net income per share of $1.73. The Q4 revenues were unfavorably impacted by foreign exchange of approximately $16.0 million sequentially and approximately $67.6 million year over year.
“Overall, I’m pleased to report fourth quarter results that reflect a more stable environment for doctors and their patients than recent quarters, especially in the Americas and EMEA regions, as well as most APAC markets outside of China. Throughout Q4, trends in consumer interest for orthodontic treatment, patient traffic in doctor’s practices, and iTero™ scanner demos continued to improve.... We anticipate that 2023 will be a very exciting year for Align innovations as we begin to commercialize one of the largest new product and technology cycles in our 25-year history.”
The company faced restructuring and other charges of $14.3 million in Q4’22, of which $2.9 million was included in the cost of net revenues, and $11.5 million was included in operating expenses. These charges included $8.7 million of severance-related costs and $5.6 million of certain lease terminations costs and asset impairments.
Despite the unfavorable impact of foreign exchange rates, Align Technology has continued to report strong financial results. Furthermore, with the board authorizing a new stock repurchase program, the company has demonstrated its confidence in its ability to continue generating strong cash flows and profits.
Enhanced Market Intelligence
Finding market opportunities is made easier by using our AI system. It doesn't tell you what to do. It tells you where to look. Our skilled team of analysts carefully verifies the AI outputs and enhances this market research with a human touch, providing our subscribers with enhanced market intelligence. If you would like the AI advantage working for you, then you should subscribe today!
Life is better when you can be bullish.
Sources: 1. Align Technology Investor Relations, "ALIGN TECHNOLOGY TO ANNOUNCE FIRST QUARTER 2023 RESULTS ON APRIL 26, 2023" (2023)
2. Align Technology Investor Relations, "ALIGN TECHNOLOGY ANNOUNCES FOURTH QUARTER AND FISCAL 2022 FINANCIAL RESULTS" (2023)
Kommentare