Aureus
AExcellent

Align Technology, Inc.(ALGN)

A

Financial data as of Dec 31, 2024Declining · Healthcare

FCF Margin15.6%Free Cash Flow / Revenue
Cash Conversion175.2%Operating CF / Net Income
Free Cash Flow$622.7M
Revenue$4.0B
Net Cash$924.6MCash exceeds debt
Debt / FCF0.2xManageable debt load
Current Ratio1.22Adequate short-term liquidity
YoY FCF Growth-27.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (15.6%, 0.2x)
→
-1Significant YoY FCF decline (-27.8%)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.2x)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (15.6%)
  • Excellent cash conversion (175%)
  • Net cash position ($0.9B)
  • Very low debt relative to cash flow (0.2x)

Concerns

  • Significant YoY FCF decline (-27.8%)
  • Significant FCF decline (-27.8% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin15.6%
Net Margin10.5%
Operating CF Margin18.5%
CapEx Ratio2.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$924.6MCash exceeds debt
Debt / FCF0.2xManageable debt load
Current Ratio1.22Adequate liquidity
Debt / Equity0.03Low leverage

Quarterly FCF Trend

-27.8% YoYDeclining (-27.8%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAlign Technology, Inc.
SectorHealthcare
Free Cash Flow$622.7M
Revenue$4.0B
Net Income$421.4M
Operating Cash Flow$738.2M
Capital Expenditure$115.6M
FCF Margin15.6%
Cash Conversion Rate175.2%
Net Margin10.5%
Total Debt$119.3M
Total Cash$1.0B
Net Cash$924.6M
Current Ratio1.22
Debt / Equity0.03
Debt / FCF0.2x
YoY FCF Growth-27.8%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance