Align Technology Inc. (NASDAQ:ALGN)

The share price exhibited significant volatility over the analyzed period. Initially, it rose from $8.46 in early 2006 to a peak of $16.79 in early 2007, followed by a decline to $6.85 in early 2009. From 2009 onwards, a general upward trend is observed, with notable increases reaching as high as $567.11 by 2021. However, subsequent years show a decline with the share price dropping to $304.64 by early 2023, indicating some correction or market adjustment after the peak.

Operating profit per share showed considerable fluctuations initially, reflecting operational challenges or investment phases. The metric moved from a marginal $0.04 in 2006 to negative values in certain years, such as -$0.57 in 2007 and -$0.45 in 2010, hinting at periods of operating losses. From 2011 onward, operating profit per share generally improved, peaking at $12.39 in early 2022 before dropping to $8.39 in early 2023. This trend suggests overall improved profitability with occasional decreases, possibly due to increased costs or market conditions.

The price to operating profit (P/OP) ratio fluctuated widely, reflecting changing market valuations and volatility in operating profits. Initial high ratios, such as 216.78 in 2006, correspond with very low or negative profits, indicating a challenging valuation environment. The ratio stabilizes somewhat in the following years, with values mostly ranging between approximately 14 and 60. Spikes occurred in 2018 and 2021 (59.49 and 115.91 respectively), which may indicate elevated market expectations or temporary profit declines. In recent years, the ratio decreased to the 30-40 range, suggesting a recalibration of valuation relative to operating profit.

Overall, the data indicate an entity transitioning from early profitability challenges to more robust earnings and market value over time. However, periodic fluctuations in profitability and share price imply sensitivity to external factors or internal strategic changes. The peak values noted around 2021 followed by declines into 2023 point to a recent market correction or operational adjustments impacting both profitability and perception of value.

Share Price Trends

Substantial growth from 2009 to 2021, followed by correction through 2023.

Operating Profit Per Share

Initial volatility with losses, then sustained improvement post-2011, peaking in 2022 before moderate decline.

Price to Operating Profit Ratio

Highly variable early on, stabilizing generally, with occasional spikes reflecting market expectations or profit variability.