Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$666M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$750M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book2.98x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
B
Free Cash Flow$120M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income27.3%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$200M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Align Technology, Inc.
Align Technology, Inc. provides Invisalign clear aligners, Vivera retainers, and iTero intraoral scanners and services in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers Invisalign comprehensive package to treat adults and teens malocclusion and features, and orthodontic needs of teenage or younger patients; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients between the ages of six and ten years with a mixture of primary/baby and permanent teeth. This segment also provides Invisalign express, Invisalign lite, and Invisalign moderate; Invisalign Go, Invisalign Go express, and Invisalign Go Plus; retention products, Invisalign training, adjusting tools used by dental professionals during treatment, ancillary Invisalign accessory products, and other oral health products; Invisalign Professional Whitening system; Invisalign Palatal Expander, a 3D printed orthodontic device; and 3D printing solutions. Its Imaging Systems and CAD/CAM Services segment offers iTero intraoral scanning system, a single hardware platform for restorative or orthodontic procedures; exocad, a computer-aided design and computer-aided manufacturing software; orthodontist software for digital records storage, orthodontic diagnosis, and fabrication of printed models and retainers; and restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons. This segment also offers Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; Align Oral Health Suite, a digital interface for dental consultations; iTero TimeLapse technology for doctors or practitioners to compare a patient's historic 3D scans to the present-day scan; and subscription software, disposables, rents scanners, and pay per scan services. Align Technology, Inc. was incorporated in 1997 and is headquartered in Tempe, Arizona.
Align Technology, Inc. provides Invisalign clear aligners, Vivera retainers, and iTero intraoral scanners and services in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers Invisalign comprehensive package to treat adults and teens malocclusion and features, and orthodontic needs of teenage or younger patients; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients between the ages of six and ten years with a mixture of primary/baby and permanent teeth. This segment also provides Invisalign express, Invisalign lite, and Invisalign moderate; Invisalign Go, Invisalign Go express, and Invisalign Go Plus; retention products, Invisalign training, adjusting tools used by dental professionals during treatment, ancillary Invisalign accessory products, and other oral health products; Invisalign Professional Whitening system; Invisalign Palatal Expander, a 3D printed orthodontic device; and 3D printing solutions. Its Imaging Systems and CAD/CAM Services segment offers iTero intraoral scanning system, a single hardware platform for restorative or orthodontic procedures; exocad, a computer-aided design and computer-aided manufacturing software; orthodontist software for digital records storage, orthodontic diagnosis, and fabrication of printed models and retainers; and restorative software for general practitioner dentists, prosthodontists, periodontists, and oral surgeons. This segment also offers Invisalign outcome simulator, a chair-side and cloud-based application for the iTero scanner; Invisalign progress assessment tool; Align Oral Health Suite, a digital interface for dental consultations; iTero TimeLapse technology for doctors or practitioners to compare a patient's historic 3D scans to the present-day scan; and subscription software, disposables, rents scanners, and pay per scan services. Align Technology, Inc. was incorporated in 1997 and is headquartered in Tempe, Arizona.
Metric Explanations
What each dimension measures and where the thresholds come from.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Align Technology, Inc. at $172.89.
The business passes only 0 of 6 of Graham's defensive criteria — well below his required standard.
At $172.89, the stock trades at a 290% premium to its Graham Number of $44.37. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 25.2x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Gross Profit %
N/A•
65.3%•
N/A
Operating Margin %
N/A•
15.2%•
N/A
Net Income %
N/A•
13.0%•
N/A
Diluted EPS
1.51▼
1.89•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$6.3B
$6.2B
N/A
Total Debt
$116M▲
$114M•
N/A
Working Capital
$750M▲
$697M•
N/A
Years to Pay Debt
1.03
0.84
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$120M▼
$187M•
N/A
Owner Earnings
$200M
$274M
N/A
CapEx % of Net Income
27.3%
26.5%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
-821
Tax Rate For Calcs
0
Normalized EBITDA
264,421
Total Unusual Items
-3,551
Total Unusual Items Excluding Goodwill
-3,551
Net Income From Continuing Operation Net Minority Interest
135,760
Reconciled Depreciation
101,995
Reconciled Cost Of Revenue
363,974
EBITDA
260,870
EBIT
158,875
Net Interest Income
4,621
Interest Income
4,621
Normalized Income
138,490
Net Income From Continuing And Discontinued Operation
135,760
Total Expenses
888,686
Total Operating Income As Reported
155,324
Diluted Average Shares
71,520
71,757
Basic Average Shares
71,495
71,684
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
135,760
Net Income Common Stockholders
135,760
Net Income
135,760
Net Income Including Noncontrolling Interests
135,760
Net Income Continuous Operations
135,760
Tax Provision
40,835
Pretax Income
176,595
Other Income Expense
13,099
Other Non Operating Income Expenses
16,650
Special Income Charges
-3,551
Other Special Charges
0
-225
Restructuring And Mergern Acquisition
3,551
Net Non Operating Interest Income Expense
4,621
Interest Income Non Operating
4,621
Operating Income
158,875
Operating Expense
524,712
Research And Development
83,036
Selling General And Administration
441,676
Gross Profit
683,587
Cost Of Revenue
363,974
Total Revenue
1,047,561
Operating Revenue
1,047,561
Balance Sheet
2026
2025
2024
Ordinary Shares Number
71,617
71,364
Share Issued
71,617
71,364
Total Debt
116,044
114,446
Tangible Book Value
3,545,560
3,463,381
Invested Capital
4,149,419
4,049,147
Working Capital
749,577
696,547
Net Tangible Assets
3,545,560
3,463,381
Capital Lease Obligations
116,044
114,446
Common Stock Equity
4,149,419
4,049,147
Total Capitalization
4,149,419
4,049,147
Total Equity Gross Minority Interest
4,149,419
4,049,147
Stockholders Equity
4,149,419
4,049,147
Gains Losses Not Affecting Retained Earnings
70,093
75,388
Other Equity Adjustments
70,093
75,388
Retained Earnings
2,548,385
2,464,157
Additional Paid In Capital
1,530,934
1,509,595
Capital Stock
7
7
Common Stock
7
7
Total Liabilities Net Minority Interest
2,164,754
2,184,546
Total Non Current Liabilities Net Minority Interest
258,901
264,531
Other Non Current Liabilities
108,192
113,824
Tradeand Other Payables Non Current
67,287
68,200
Long Term Debt And Capital Lease Obligation
83,422
82,507
Long Term Capital Lease Obligation
83,422
82,507
Current Liabilities
1,905,853
1,920,015
Current Deferred Liabilities
1,235,254
1,261,816
Current Deferred Revenue
1,235,254
1,261,816
Current Debt And Capital Lease Obligation
32,622
31,939
Current Capital Lease Obligation
32,622
31,939
Payables And Accrued Expenses
637,977
626,260
Current Accrued Expenses
479,341
460,761
Payables
158,636
165,499
Total Tax Payable
34,916
44,049
Income Tax Payable
34,916
44,049
Accounts Payable
123,720
121,450
Total Assets
6,314,173
6,233,693
Total Non Current Assets
3,658,743
3,617,131
Other Non Current Assets
365,144
278,048
Non Current Deferred Assets
1,471,425
1,513,542
Non Current Deferred Taxes Assets
1,471,425
1,513,542
Goodwill And Other Intangible Assets
603,859
585,766
Other Intangible Assets
100,818
93,933
Goodwill
503,041
491,833
Net PPE
1,218,315
1,239,775
Accumulated Depreciation
-767,324
-661,712
Gross PPE
1,218,315
2,007,099
Leases
67,402
62,172
Construction In Progress
127,944
133,684
Other Properties
1,218,315
956,795
Machinery Furniture Equipment
272,482
271,572
Buildings And Improvements
524,608
529,716
Land And Improvements
57,868
63,875
Current Assets
2,655,430
2,616,562
Other Current Assets
57,059
47,274
Assets Held For Sale Current
39,832
27,983
0
Prepaid Assets
107,260
62,478
Inventory
214,944
226,343
Finished Goods
49,625
53,368
Work In Process
68,890
65,679
Raw Materials
96,429
107,296
Receivables
1,176,501
1,157,576
Taxes Receivable
51,387
55,819
Accounts Receivable
1,125,114
1,101,757
Allowance For Doubtful Accounts Receivable
-36,361
-34,213
Gross Accounts Receivable
1,161,475
1,135,970
Cash Cash Equivalents And Short Term Investments
1,059,834
1,094,908
Cash And Cash Equivalents
1,059,834
1,094,908
Cash Equivalents
198,951
324,857
Cash Financial
860,883
770,051
Cash Flow
2026
2025
2024
Free Cash Flow
120,257
187,261
Repurchase Of Capital Stock
-31,195
-97,248
Issuance Of Capital Stock
11,718
0
Capital Expenditure
-30,785
-35,916
End Cash Position
1,061,132
1,096,186
Beginning Cash Position
1,096,186
1,005,808
Effect Of Exchange Rate Changes
-6,387
523
Changes In Cash
-28,667
89,855
Financing Cash Flow
-48,128
-97,406
Cash Flow From Continuing Financing Activities
-48,128
-97,406
Net Common Stock Issuance
-19,477
-97,248
Common Stock Payments
-31,195
-97,248
Common Stock Issuance
11,718
0
Investing Cash Flow
-131,581
-35,916
Cash Flow From Continuing Investing Activities
-131,581
-35,916
Net Investment Purchase And Sale
-31,342
0
Purchase Of Investment
-31,342
0
Net Business Purchase And Sale
-69,454
0
Purchase Of Business
-69,454
0
Net PPE Purchase And Sale
-30,785
-35,916
Purchase Of PPE
-30,785
-35,916
Operating Cash Flow
151,042
223,177
Cash Flow From Continuing Operating Activities
151,042
223,177
Change In Working Capital
-97,793
-101,776
Change In Other Working Capital
-31,053
-23,095
Change In Payables And Accrued Expense
9,392
-71,718
Change In Accrued Expense
5,376
-27,924
Change In Payable
4,016
-43,794
Change In Account Payable
4,929
-1,399
Change In Tax Payable
-913
-42,395
Change In Income Tax Payable
-913
-42,395
Change In Prepaid Assets
-44,492
17,484
Change In Inventory
9,349
-2,247
Change In Receivables
-40,989
-22,200
Changes In Account Receivables
-40,989
-22,200
Other Non Cash Items
17,371
18,575
Stock Based Compensation
40,924
44,288
Asset Impairment Charge
-18,159
-6,000
Deferred Tax
40,644
42,494
Deferred Income Tax
40,644
42,494
Depreciation Amortization Depletion
56,548
101,995
Depreciation And Amortization
56,548
101,995
Depreciation
56,548
Operating Gains Losses
-19,423
Earnings Losses From Equity Investments
-7,724
Net Income From Continuing Operations
112,771
135,760
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.39x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$120M
vs Positive
Operating Cash Flow
$151M
Latest quarter · Buffett's cash reality check
ROIC
nan%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
3.0x
Net Assets: $4.1B
Peers & Industry
No auto-detected peers for Medical Instruments & Supplies. You can manually compare ALGN against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
6.82%
Moderate — some alignment with shareholders
Share Buybacks (Latest Year)
$466M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+1.4% YoY
Debt is roughly stable
Leadership Team
Joseph Hogan
President, CEO & Director
Age 68
Pay: $2,637,116
John Morici
CFO & Executive VP of Global Finance
Age 58
Pay: $1,024,500
Top Institutional Holders
Institution
% Owned
Shares
Vanguard Capital Management LLC
6.13%
4,389,119
Blackrock Inc.
5.99%
4,289,924
Capital World Investors
5.69%
4,072,296
Capital International Investors
5.32%
3,809,202
Vanguard Portfolio Management LLC
4.40%
3,150,783
FMR, LLC
3.77%
2,700,359
State Street Corporation
3.51%
2,516,254
Ninety One UK Ltd
3.09%
2,209,791
Risk Analysis
Beta (Market Risk)
1.65
High volatility — moves more than the market
Short Interest
7.7% of float
Moderate short interest
Debt-to-Equity
0.02x
Conservative balance sheet — low financial risk
Current Ratio
1.40x
Adequate liquidity
52-Week Price Range
Low: $122.00Current: $172.89High: $200.44
Currently at 65% of 52-week range
Align Technology, Inc. (ALGN) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $44.37. Margin of safety: 0%. Gross profit margin: N/A. Operating margin: N/A. Net margin: N/A. Market cap: $12.4B. Sector: Healthcare. Industry: Medical Instruments & Supplies. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.