ALGN - Embedded Expectations Analysis - 2020 12 09
Align Technology, Inc. (ALGN:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 72.6x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about new Invisalign patients, ClinCheck™ Pro 6.0's capabilities, and digital treatment competitionSpecifically, management may lack confidence in their ability to sustain Scanner segment revenue and international clear aligner growth. In addition, they may be exaggerating ClinCheck Pro 6.0's capabilities and their focus on innovation. Moreover, management may have concerns about the learning process of ClinCheck Pro, their ability to compete in the digital treatment space, and the effectiveness of their bracket buyback programs. Furthermore, they may lack confidence in their ability to attract new Invisalign patients and improve their average selling price (ASP). Finally, management may be concerned about their sales and marketing strategies and the sustainability of procedure recovery
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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