April Ortho Data - No News, Same Views

Research evidence excerpt

April Ortho Data - No News, Same Views

considering better trends over the FY26E EPS — US$11.21

FY27E EPS — US$12.25 past several months (three of past 5 months +LSD/+MSD growth) and knowing this fits

with commentary from ALGN management referencing the U.S. market as being mostly 52-Week High / Low US$208.31 / US$122.00

stable. Shares Out (mil) 71.8

Market Cap. (mil) US$11,519.2

Total Assets ($mil) 6,234

• Teen Aligners Nearly Flat Y/Y, Underperform B&W. Teen aligner cases declined Avg Daily Vol (000) 1,154

1.2% y/y in April, very similar to the broader population. Relative to B&W, aligners Book Value/Share US$54.65

did slip back into underperforming fixed appliances, trailing by 500bp last month after Price/Book 294%

posting share gains in Feb/March. It's early in the quarter still and the data can bounce Net Cash Per Share US$13.87

around from month-to-month, but we'd like to see data for May/June showing better Debt to Total Capital 0.0%

relative performance for teen aligners so investor worries don't rise regarding practice Div Yield 0.00%

economics/inflationary pressures shifting ortho prescribing trends back towards B&W. Fiscal Year End Dec

Price Performance - 1 Year

• PSC Perspective. The first month of the quarter always feels the least impactful to us -

not only is it just a single month for the period, but it often comes after ALGN has already USD220

reported results and commented on recent trends. To that end, there's little here that

looks to be meaningfully different from what ALGN management described on their 1Q 200

call. If there's an encouraging takeaway from the entire dataset, we'd stress 1) volume 180

stability in the face of macroeconomic uncertainty and 2) inflationary pressures pinching