ALGN – Market expectations are for Uniform ROA to improve, but management may have concerns about their product, growth, and marketing initiatives
March 28, 2022
- Align Technology, Inc. (ALGN) currently trades above corporate, but below historical averages relative to Uniform earnings, with a 29.9x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to slightly improve to 43%, accompanied by 9% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to fade to 41% by 2023, accompanied by 19% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $525, representing approximately 31% equity upside for the firm.
Moreover, the firm’s most recent earnings call suggests management may have concerns about product features, growth opportunities, and marketing initiatives.
