In the second quarter of 2026, Align Technology generated $192.8 million in operating cash flow and $157.1 million in free cash flow. Capital spending totaled $35.7 million.
The company trades at 13.20 times earnings and 11.47 times forward earnings. It remains profitable, carries no outstanding debt and produces positive operating cash flow.
That matters.
Во втором квартале 2026 года Align Technology получила $192,8 млн операционного денежного потока и $157,1 млн свободного денежного потока после капитальных затрат в $35,7 млн.
The gap with comparable benchmarks is wide.
Align Technology's price-to-earnings ratio of 13.20 compares with an industry average of 55.70 and an S&P 500 average of 25.58. Its forward P/E of 11.47 is below the industry average of 33.50 and the S&P 500 forward average of 20.71.
The company is also cheaper than 92.97% of industry peers on enterprise value to EBITDA. On price to free cash flow, it is cheaper than 90.27% of peers.
Во втором квартале 2026 года выручка Align Technology составила $1,06 млрд, увеличившись на 4,3% год к году, а скорректированная прибыль достигла $2,64 на акцию. На конец квартала компания располагала $1,10 млрд денежных средств и эквивалентов.
Profitability gives the stock some protection.
Align Technology's return on invested capital is 10.73%. That figure beats 91.89% of industry peers. Return on assets is 6.44% and exceeds 82.70% of the industry. Return on equity is 9.77%, ahead of 81.08% of peers.
Operating margin is 16.78%. Gross margin is 69.05% and has stayed stable in recent years. Align reported positive earnings and positive operating cash flow in each of the past five years.
The balance sheet removes a major value-investing risk.
Align Technology has no outstanding debt. Its Debt/Equity and Debt/FCF ratios are both zero. An Altman-Z score of 4.60 places the company in financially healthy territory. The share count also fell over the past year and past five years, increasing the claim of remaining shares on future profits.
Liquidity looks less impressive than solvency. The current ratio is 1.40, while the quick ratio is 1.28. Both figures rank below those of many industry peers. The absence of debt and continued cash generation reduce the chance that these ratios point to near-term financial stress.
Reuters data for 2025 show why solvency remains part of the case. Align reported total debt of zero, $6.23 billion in assets, $2.18 billion in liabilities, $4.03 billion in revenue and $410.35 million in net income, according to a Reuters financial review.
The same dataset records $593.22 million in cash from operating activities for the year. That supports the company's cash-generation profile. It does not remove the risks tied to slower growth.
Growth is slowing. It has not stopped.
Earnings per share rose 18.17% over the past year and increased by an average of 14.96% over recent years. Revenue grew 4.41% over the past year and 10.30% on average over recent years. Forward estimates call for average annual EPS growth of 11.29% and revenue growth of 7.51%.
The latest quarterly figures provide a more current view. Second-quarter revenue rose 4.3% year over year to $1.06 billion. Adjusted earnings reached $2.64 per share.
Management raised its 2026 share-repurchase outlook to $400 million to $500 million. During the quarter, Align bought approximately 393,400 shares for $67 million. The company had $733.3 million left under its existing $1 billion authorization.
That moderation may explain the market's reluctance to award Align Technology a premium multiple. Profit margins have declined in recent years, even though operating and gross margins have stayed broadly steady. Weaker demand for clear aligners, scanners or services could push forward earnings estimates lower.
A low valuation does not prevent further losses when earnings are shrinking.
Align Technology also appears in the High Free Cash Flow Stocks screen. That adds a cash-generation measure to the earnings case. The screen does not remove execution or competitive risk. It does support the view that the discount is not simply the result of a business running out of economic fuel.
The investment case is narrow but durable. Align Technology combines a low valuation with strong profitability, no debt and moderate expected growth. This is not a high-growth story. It is not risk-free.
Instead, the company is a quality dental technology business priced as though investors want more proof before granting it a higher multiple. The discount looks large enough to merit serious research. Margin pressure and slower revenue growth remain the main risks to watch.
This article is for informational and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their risk tolerance before making investment decisions.
