Align Technology, Inc. (ALGN): a likely value trap?

Avoid — cheap-looking multiple masks a structurally slowing, low-margin business with fading growth and no clear catalyst.

⚠ TRAP Fundamentals63/100

Down 79% from its all-time high of $725.24 — now $153.49

Why ALGN dropped

ALGN's stock has been sliding for years since its 2021 peak, and the latest leg down reflects continued deceleration: revenue growth is only ~4%, earnings actually fell ~12%, North America/consumer demand for Invisalign is sluggish, and the company is shifting to cheaper, lower-margin scanner/rental models that is hurting near-term cash generation and profitability.

Fwd P/E 12.2Op margin 18.2%Rev growth 4.3%Debt/equity 2.9%Analyst upside 35.9%

How this scored 63/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.0%

✅ Generates cash Free cash flow $584M

✅ Not drowning in debt Debt/equity 2.9% (limit 200%)

✅ Can pay its bills Current ratio 1.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 13/25

Operating margin 18.2% 7/9

Net profit margin 10.0% 4/8

Return on equity 10.2% 2/8

Growth Is it getting bigger, or dying? 11/25

Revenue growth 4.3% 3/9

Earnings growth -12.1% 0/8

Expected profit change 117.9% 8/8

Value Is it cheap right now? 20/25

Forward P/E 12.2 9/10

PEG ratio 0.7 7/8

Analyst target upside 35.9% 4/7

Balance sheet Will it survive? 19/25

Debt / equity 2.9% 10/10

Current ratio 1.4 2/8

Free cash flow $584M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-09. Research only — not financial advice.