ALGN

Align Technology

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Medical Instruments & Supplies

Exchange

Nasdaq

County of HQ

Uruguay

Next Earnings Date

04/29/26

Business Summary

DLocal operates a cross-border payments infrastructure platform focused on enabling global merchants to access emerging markets through localized payment solutions. The company generates revenue by facilitating transactions and capturing fees across its integrated payment rails, embedding itself deeply into merchant workflows. Its moat comes from regulatory know-how, local banking integrations, and network effects across fragmented emerging markets where replication is operationally complex. High operating margins of 34.60% show that once integrations are built, incremental transaction volume scales efficiently, converting revenue growth into durable cash generation.

VALUATION

P/E

30.7

Market Cap ($M USD)

$12,399

Forward P/E

14.1

PEG

1.2

PRICE TO SALES

3.1

PRICE TO BOOK

3.1

EV / EBITDA

13.9

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$5.66

Next Year EPS Growth Estimate

$12.29

Next Year Revenue Growth Estimate

4.70%

Return on Equity (ROE)

10.10%

Operating Margin

14.50%

Debt-to-Equity

0

Piotroski F-Score

6

Altman Z-Score

5.1

Return on Invested Capital (ROIC)

9.80%%

Current Ratio

1.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 20.2x earnings and just 12.1x forward earnings, DLO is priced like a no-growth cyclical despite a 0.7 forward PEG that screams undervaluation relative to expected growth. A 4.4 Altman Z-Score signals strong balance sheet stability, while a 25.10% Return on Equity and 29.00% ROIC indicate elite capital efficiency that the market is not fully capitalizing into the multiple. With a 3.6 Price/Sales ratio and 34.60% operating margins, this is not a speculative tech story — it is a highly profitable infrastructure asset trading at a compressed growth multiple. The market cap of $3,869M against this profitability profile suggests skepticism is already priced in, creating asymmetry if execution holds.

AI Exposure / Tech Reliance

As a Software - Infrastructure company in the Technology sector, DLO operates in a segment that directly benefits from digitization and AI-driven transaction ecosystems. Infrastructure software tends to become more embedded over time, increasing switching costs and data advantages. If it maintains its 34.60% operating margin, it has the financial flexibility to reinvest in automation and AI integration without stressing the balance sheet.

The Bull Case

A GARP investor buys this because the numbers line up almost too cleanly: a 0.7 forward PEG with a 12.1 forward P/E is textbook growth at a discount. The company generates a 29.00% ROIC and 25.10% ROE, proving it converts capital into profit at rates well above average, while a Piotroski F-Score of 7 confirms solid financial health and operational momentum. Operating margins at 34.60% are infrastructure-like in quality, not bloated growth-at-any-cost economics, and a 1.5 current ratio combined with a 4.4 Altman Z-Score reduces solvency anxiety. Debt/Equity at 20.30% is manageable, allowing leverage without fragility. This is the profile of a compounding platform temporarily valued like a mid-tier software name.

The Bear Case

The glaring inconsistency is the EPS of 13.40 versus forward expectations of $0.68, which implies either normalization or earnings compression that the market may be discounting correctly. A Price/Book of 6.8 is not cheap for a company with a 3.6 Price/Sales ratio unless growth durability is unquestionable. The 0.2 TTM Yield with no Dividend Per Share and a Payout Ratio listed at $0.19 offers no real income cushion if growth stalls. Institutional Ownership at $17.17 is relatively low, suggesting limited large-cap sponsorship, and the absence of Short % of Float data removes visibility into bearish conviction. If forward growth disappoints, the multiple could compress quickly given the market’s skepticism implied by the modest $3,869M valuation.

Market Sentiment & Smart Money

Short Interest %

5.40%

Analyst Consensus

1.87

Average Analyst Price Target

$200.15

Institutional Ownership %

96.30%

1-Year Beta

1.47

Insider Buying % (6 Mo)

6.80%%

Distance to 52-Week High

83.10%%

Distance to 52-Week Low

141.90%%