ALGN - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 85/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±50.0% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 1.7x as much as the broader market.

Beta (Market Relation)

1.67x

Above average

Volatility (5Y p.a.)

50.0% p.a.

5-Year Horizon

Max Drawdown (5Y)

-82.4%

5-Year Horizon

Sharpe Ratio

-0.57

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+6%
3 Years	46.5%	-62.2%	-0.5	-20.8%
5 Years	50.0%	-82.4%	-0.57	-26.2%
10 Years	49.4%	-82.9%	0.04	+4.5%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

High market risk: Beta of 1.67 indicates above-average volatility compared to the broader market.

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (50.0% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -82.9% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

7 ISS Score: 7 / 10

Audit Risk

1 ISS Score: 1 / 10

Board Risk

4 ISS Score: 4 / 10

Short Ratio

4.59