ALLEGRO MICROSYSTEMS INC (ALGM)
US01749D1054 - Common Stock
Overall ALGM gets a fundamental rating of 4 out of 10. We evaluated ALGM against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM has an excellent profitability rating, but there are some minor concerns on its financial health. ALGM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ALGM was profitable.
ALGM had a positive operating cash flow in the past year.
ALGM had positive earnings in each of the past 5 years.
ALGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALGM has a Return On Assets (-1.68%) which is in line with its industry peers.
ALGM has a Return On Equity (-2.68%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 4.12%, ALGM is doing good in the industry, outperforming 61.11% of the companies in the same industry.
ALGM had an Average Return On Invested Capital over the past 3 years of 14.70%. This is above the industry average of 11.13%.
The last Return On Invested Capital (4.12%) for ALGM is well below the 3 year average (14.70%), which needs to be investigated, but indicates that ALGM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.68% | ||
| ROE | -2.68% | ||
| ROIC | 4.12% |
ROA(3y)13.07%
ROA(5y)9.23%
ROE(3y)16.39%
ROE(5y)11.62%
ROIC(3y)14.7%
ROIC(5y)10.57%
1.3 Margins
ALGM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.94%, ALGM is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
In the last couple of years the Operating Margin of ALGM has grown nicely.
With a decent Gross Margin value of 49.13%, ALGM is doing good in the industry, outperforming 62.96% of the companies in the same industry.
ALGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 49.13% |
OM growth 3Y85.22%
OM growth 5Y8.48%
PM growth 3Y68.44%
PM growth 5Y4.47%
GM growth 3Y5.09%
GM growth 5Y4.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALGM is destroying value.
The number of shares outstanding for ALGM has been increased compared to 1 year ago.
ALGM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALGM has a worse debt to assets ratio.
2.2 Solvency
ALGM has an Altman-Z score of 5.44. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
ALGM's Altman-Z score of 5.44 is fine compared to the rest of the industry. ALGM outperforms 61.11% of its industry peers.
ALGM has a debt to FCF ratio of 6.14. This is a slightly negative value and a sign of low solvency as ALGM would need 6.14 years to pay back of all of its debts.
ALGM has a Debt to FCF ratio (6.14) which is in line with its industry peers.
ALGM has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ALGM (0.42) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 5.44 |
ROIC/WACC0.28
WACC14.8%
2.3 Liquidity
ALGM has a Current Ratio of 4.22. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.22, ALGM is doing good in the industry, outperforming 67.59% of the companies in the same industry.
A Quick Ratio of 2.80 indicates that ALGM has no problem at all paying its short term obligations.
ALGM's Quick ratio of 2.80 is fine compared to the rest of the industry. ALGM outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.97%.
ALGM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.75% yearly.
Looking at the last year, ALGM shows a very negative growth in Revenue. The Revenue has decreased by -20.72% in the last year.
Measured over the past years, ALGM shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
EPS 1Y (TTM)-54.97%
EPS 3Y105.79%
EPS 5Y11.75%
EPS Q2Q%-80%
Revenue 1Y (TTM)-20.72%
Revenue growth 3Y21.08%
Revenue growth 5Y7.7%
Sales Q2Q%-31.98%
3.2 Future
Based on estimates for the next years, ALGM will show a decrease in Earnings Per Share. The EPS will decrease by -2.10% on average per year.
The Revenue is expected to grow by 0.63% on average over the next years.
EPS Next Y-80.67%
EPS Next 2Y-30.95%
EPS Next 3Y-4.19%
EPS Next 5Y-2.1%
Revenue Next Year-31.48%
Revenue Next 2Y-9.09%
Revenue Next 3Y0.65%
Revenue Next 5Y0.63%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.75, the valuation of ALGM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ALGM indicates a somewhat cheap valuation: ALGM is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (27.55), we can say ALGM is valued inline with the index average.
A Price/Forward Earnings ratio of 34.35 indicates a quite expensive valuation of ALGM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM is on the same level as its industry peers.
ALGM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.75 | ||
| Fwd PE | 34.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGM indicates a somewhat cheap valuation: ALGM is cheaper than 62.96% of the companies listed in the same industry.
63.89% of the companies in the same industry are more expensive than ALGM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.61 | ||
| EV/EBITDA | 30.35 |
4.3 Compensation for Growth
ALGM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALGM's earnings are expected to decrease with -4.19% in the coming years.
PEG (NY)N/A
PEG (5Y)2.79
EPS Next 2Y-30.95%
EPS Next 3Y-4.19%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALLEGRO MICROSYSTEMS INC
NASDAQ:ALGM (12/26/2024, 5:50:16 PM)
After market: 22.27 0 (0%)22.27
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners49.89%
Inst Owner Change35.7%
Ins Owners0.59%
Ins Owner Change-60.18%
Market Cap4.10B
Analysts82.35
Price Target27.99 (25.68%)
Short Float %10.55%
Short Ratio6.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)35.22%
Min EPS beat(2)25.49%
Max EPS beat(2)44.96%
EPS beat(4)4
Avg EPS beat(4)23.62%
Min EPS beat(4)8.88%
Max EPS beat(4)44.96%
EPS beat(8)8
Avg EPS beat(8)14.05%
EPS beat(12)12
Avg EPS beat(12)11.5%
EPS beat(16)16
Avg EPS beat(16)10.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-1.05%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)0.4%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)-9.92%
PT rev (3m)-13.97%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-55.22%
EPS NY rev (1m)1.2%
EPS NY rev (3m)-35.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.76%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-9.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.75 | ||
| Fwd PE | 34.35 | ||
| P/S | 4.82 | ||
| P/FCF | 62.61 | ||
| P/OCF | 30.34 | ||
| P/B | 4.37 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 30.35 |
EPS(TTM)0.68
EY3.05%
EPS(NY)0.65
Fwd EY2.91%
FCF(TTM)0.36
FCFY1.6%
OCF(TTM)0.73
OCFY3.3%
SpS4.62
BVpS5.09
TBVpS2.54
PEG (NY)N/A
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.68% | ||
| ROE | -2.68% | ||
| ROCE | 4.93% | ||
| ROIC | 4.12% | ||
| ROICexc | 4.78% | ||
| ROICexgc | 7.95% | ||
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 49.13% | ||
| FCFM | 7.7% |
ROA(3y)13.07%
ROA(5y)9.23%
ROE(3y)16.39%
ROE(5y)11.62%
ROIC(3y)14.7%
ROIC(5y)10.57%
ROICexc(3y)21.11%
ROICexc(5y)15.19%
ROICexgc(3y)26.57%
ROICexgc(5y)18.66%
ROCE(3y)17.59%
ROCE(5y)12.75%
ROICexcg growth 3Y80.7%
ROICexcg growth 5Y9.84%
ROICexc growth 3Y59.73%
ROICexc growth 5Y-0.1%
OM growth 3Y85.22%
OM growth 5Y8.48%
PM growth 3Y68.44%
PM growth 5Y4.47%
GM growth 3Y5.09%
GM growth 5Y4.4%
F-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 93.47% | ||
| Cap/Sales | 8.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 5.44 |
F-Score3
WACC14.8%
ROIC/WACC0.28
Cap/Depr(3y)158.67%
Cap/Depr(5y)126.3%
Cap/Sales(3y)9.73%
Cap/Sales(5y)8.62%
Profit Quality(3y)56.67%
Profit Quality(5y)142.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-54.97%
EPS 3Y105.79%
EPS 5Y11.75%
EPS Q2Q%-80%
EPS Next Y-80.67%
EPS Next 2Y-30.95%
EPS Next 3Y-4.19%
EPS Next 5Y-2.1%
Revenue 1Y (TTM)-20.72%
Revenue growth 3Y21.08%
Revenue growth 5Y7.7%
Sales Q2Q%-31.98%
Revenue Next Year-31.48%
Revenue Next 2Y-9.09%
Revenue Next 3Y0.65%
Revenue Next 5Y0.63%
EBIT growth 1Y-75.22%
EBIT growth 3Y124.27%
EBIT growth 5Y16.83%
EBIT Next Year-62.72%
EBIT Next 3Y1.68%
EBIT Next 5Y5.17%
FCF growth 1Y-38.66%
FCF growth 3Y-10.68%
FCF growth 5Y20.09%
OCF growth 1Y-24.12%
OCF growth 3Y14.64%
OCF growth 5Y8.45%