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Align Your Portfolio For Growth With Align Technology

The Global Investor profile picture
The Global Investor


  • Fast-growing Align Technology has a premium product thanks to its intellectual property in orthodontic treatment.
  • The company is the world’s biggest producer of custom 3D printed materials giving patients more discreet treatments.
  • Addressable market has grown from 300m to 500m and revenues are compounding at mid-20s percentages.
  • While the company mostly reinvests for growth, management appreciates the importance of shareholder returns via use of share buybacks.

Do you have a natural symmetrical smile? In fact only 25% of people don't have any misalignment of teeth, also known as malocclusion. This means the market for orthodontic treatment is very large, about 12 million people each year go for treatment across the major developed countries.

While the conventional treatment was a pair of metal braces, new technologies are bringing about more subtle treatments. Align Technology, Inc (NASDAQ:ALGN) is the leader in this fast-growing market, with its proprietary Invisalign product. With braces always being problematic, The Global Investor thinks this 21st century product can rapidly win market share and therefore offers huge growth.

Align Technology was started in 1997. To date, the Nasdaq company has treated over 9 million patients using its transparent and removable dental retainers which are hooked up to software record measurements and progress.

Growing the addressable market

At its 2020 Investor Day in November last year, management stated there is an incremental opportunity to grow, stating that nearly 75% of all annual orthodontic treatments could benefit from its Invisalign method. In short, that means Align's estimated addressable market has grown from a previously stated 300 million to 500 million people now.

Although Invisalign is relatively expensive, for many it's an appealing alternative to the conventional "train-tracks" option. In the biggest orthodontic market - teenagers – Invisalign is fast-growing, with the company having treated its two-millionth teen patient last year 2020.

The market is starting to recognize this growth opportunity. Align Technology is valued at about $45 billion, after growing nearly 30x in the last ten years. In the last year alone the stock has doubled as the benefits of its digital dentistry platform became more apparent thanks to Covid-19.

The business

Invisalign is sold to patients through almost 200,000 dentists and orthodontists who have been

This article was written by

The Global Investor profile picture
I am a blue chips value investor.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in ALGN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (2)

investor_newbie profile picture
Need to compare with ABMD and ISRD. Good leads. Thank you!
why do you think investing in ALGN is a better long term option than ALC or DXCM or COO or TDOC. All these are health care related investments. I am just asking for our views/opinions. I am not asking for advice. Thanks
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