ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
USA - NASDAQ:ALGM - US01749D1054 - Common Stock
23.31 USD
+0.1 (+0.43%)
ALGM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While ALGM seems to be doing ok healthwise, there are quite some concerns on its profitability. ALGM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALGM had positive earnings in the past year.
In the past year ALGM had a positive cash flow from operations.
Of the past 5 years ALGM 4 years were profitable.
ALGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALGM (-2.05%) is worse than 60.71% of its industry peers.
ALGM has a Return On Equity of -3.00%. This is comparable to the rest of the industry: ALGM outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.05% | ||
| ROE | -3% | ||
| ROIC | N/A |
ROA(3y)6.9%
ROA(5y)7.3%
ROE(3y)8.35%
ROE(5y)8.88%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALGM's Gross Margin of 44.61% is in line compared to the rest of the industry. ALGM outperforms 50.89% of its industry peers.
ALGM's Gross Margin has improved in the last couple of years.
ALGM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.77%
GM growth 5Y1.99%
2. Health
2.1 Basic Checks
ALGM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ALGM has less shares outstanding
Compared to 5 years ago, ALGM has less shares outstanding
ALGM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.64 indicates that ALGM is not in any danger for bankruptcy at the moment.
ALGM has a better Altman-Z score (6.64) than 67.86% of its industry peers.
The Debt to FCF ratio of ALGM is 5.05, which is a neutral value as it means it would take ALGM, 5.05 years of fcf income to pay off all of its debts.
ALGM's Debt to FCF ratio of 5.05 is in line compared to the rest of the industry. ALGM outperforms 56.25% of its industry peers.
ALGM has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.30, ALGM perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 6.64 |
ROIC/WACCN/A
WACC10.69%
2.3 Liquidity
ALGM has a Current Ratio of 3.89. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALGM (3.89) is better than 62.50% of its industry peers.
A Quick Ratio of 2.48 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a Quick ratio of 2.48. This is in the better half of the industry: ALGM outperforms 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.53%.
The earnings per share for ALGM have been decreasing by -32.49% on average. This is quite bad
Looking at the last year, ALGM shows a decrease in Revenue. The Revenue has decreased by -7.23% in the last year.
ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-48.53%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%62.5%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%14.36%
3.2 Future
The Earnings Per Share is expected to grow by 87.39% on average over the next years. This is a very strong growth
ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.38% yearly.
EPS Next Y121.25%
EPS Next 2Y102.66%
EPS Next 3Y87.39%
EPS Next 5YN/A
Revenue Next Year21.69%
Revenue Next 2Y18.29%
Revenue Next 3Y19.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ALGM is valuated quite expensively with a Price/Earnings ratio of 66.60.
ALGM's Price/Earnings ratio is in line with the industry average.
ALGM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.46.
Based on the Price/Forward Earnings ratio of 23.65, the valuation of ALGM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM indicates a somewhat cheap valuation: ALGM is cheaper than 66.07% of the companies listed in the same industry.
ALGM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.6 | ||
| Fwd PE | 23.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALGM.
ALGM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.78 | ||
| EV/EBITDA | 79.93 |
4.3 Compensation for Growth
ALGM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALGM's earnings are expected to grow with 87.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y102.66%
EPS Next 3Y87.39%
5. Dividend
5.1 Amount
No dividends for ALGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ALGM (11/19/2025, 2:58:17 PM)
23.31
+0.1 (+0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.12%
Inst Owner Change-6.4%
Ins Owners0.62%
Ins Owner Change0.13%
Market Cap4.31B
Revenue(TTM)788.39M
Net Income(TTM)-28.37M
Analysts83.33
Price Target37.49 (60.83%)
Short Float %7.71%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.14%
Min EPS beat(2)3.13%
Max EPS beat(2)5.14%
EPS beat(4)4
Avg EPS beat(4)7.84%
Min EPS beat(4)3.13%
Max EPS beat(4)17.65%
EPS beat(8)8
Avg EPS beat(8)15.73%
EPS beat(12)12
Avg EPS beat(12)11.98%
EPS beat(16)16
Avg EPS beat(16)10.58%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)2.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)-0.1%
PT rev (1m)-2.86%
PT rev (3m)-2.65%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)3.49%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)3.93%
Revenue NQ rev (3m)3.93%
Revenue NY rev (1m)2.57%
Revenue NY rev (3m)3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.6 | ||
| Fwd PE | 23.65 | ||
| P/S | 5.47 | ||
| P/FCF | 75.78 | ||
| P/OCF | 45.81 | ||
| P/B | 4.57 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 79.93 |
EPS(TTM)0.35
EY1.5%
EPS(NY)0.99
Fwd EY4.23%
FCF(TTM)0.31
FCFY1.32%
OCF(TTM)0.51
OCFY2.18%
SpS4.26
BVpS5.1
TBVpS2.65
PEG (NY)0.55
PEG (5Y)N/A
Graham Number6.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.05% | ||
| ROE | -3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.61% | ||
| FCFM | 7.22% |
ROA(3y)6.9%
ROA(5y)7.3%
ROE(3y)8.35%
ROE(5y)8.88%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.77%
GM growth 5Y1.99%
F-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 5.12 | ||
| Cap/Depr | 57.39% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 168.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 6.64 |
F-Score3
WACC10.69%
ROIC/WACCN/A
Cap/Depr(3y)131.89%
Cap/Depr(5y)124.81%
Cap/Sales(3y)8.59%
Cap/Sales(5y)8.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.53%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%62.5%
EPS Next Y121.25%
EPS Next 2Y102.66%
EPS Next 3Y87.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%14.36%
Revenue Next Year21.69%
Revenue Next 2Y18.29%
Revenue Next 3Y19.38%
Revenue Next 5YN/A
EBIT growth 1Y-113.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.77%
EBIT Next 3Y83.95%
EBIT Next 5YN/A
FCF growth 1Y-26.17%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-52.4%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%
ALLEGRO MICROSYSTEMS INC / ALGM FAQ
What is the ChartMill fundamental rating of ALLEGRO MICROSYSTEMS INC (ALGM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ALGM.
Can you provide the valuation status for ALLEGRO MICROSYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to ALLEGRO MICROSYSTEMS INC (ALGM). This can be considered as Fairly Valued.
How profitable is ALLEGRO MICROSYSTEMS INC (ALGM) stock?
ALLEGRO MICROSYSTEMS INC (ALGM) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ALLEGRO MICROSYSTEMS INC (ALGM) stock?
The Price/Earnings (PE) ratio for ALLEGRO MICROSYSTEMS INC (ALGM) is 66.6 and the Price/Book (PB) ratio is 4.57.
What is the expected EPS growth for ALLEGRO MICROSYSTEMS INC (ALGM) stock?
The Earnings per Share (EPS) of ALLEGRO MICROSYSTEMS INC (ALGM) is expected to grow by 121.25% in the next year.