- Align Technology's Q1 2022 operating income came out disappointingly at $198.1 million, a change of -12.1% YoY and -10.3% QoQ.
- Revenue growth and margins are being impacted by reduced consumer confidence, increasing costs from high inflation, unfavorable foreign exchange rates, and Covid lockdowns in China.
- Market competition is also intensifying after the company's key patents for clear aligners expired back in 2017, increasing uncertainty on long-term growth.
- Based on our conservative Discounted Cash Flow valuation, the stock is still trading above its fair value.
For further details see:
Align Technology: Don't Smile Yet