ALGN - Embedded Expectations Analysis - 2019 05 29
Align Technology, Inc. (ALGN:USA) currently trades near historical highs relative toUAFRS-based (Uniform) Earnings, with a 46.2x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about their ability to protect intellectual property and increase Invisalign sales in Latin America, and about orthodontic and GP dentist channel growth.
Specifically, management may be concerned about their digital solutions for tooth movement and scanning, the success of their Invisalign social media campaign, and their ability to protect intellectual property. Moreover, they may lack confidence in their ability to continue EMEA expansion, maintain gross margins, and sustain growth in their orthodontic and GP dentist channels. Also, they may be exaggerating their ability to grow Invisalign in Latin America, lead a transformation of digital orthodontics and dentistry, and grow the number of Invisalign cases submitted digitally.
Align Technology is a medical device company engaged in the design, manufacture and marketing of Invisalign? clear aligners and iTero? intraoral scanners and services for orthodontics, restorative and aesthetic dentistry. The company's segments are: Clear Aligner, which includes the Invisalign System, a method for treating malocclusion based on a proprietary computer-simulated virtual treatment plan and a series of doctor-prescribed, custom manufactured, clear plastic, removable aligners; and Scanners and Services, which includes Intraoral scanning that enables the dental practitioner to create a 3D image of the patient's teeth (digital scan) using a handheld intraoral scanner.
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