ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation

NASDAQ:ALGM • US01749D1054

Current stock price

31.13 USD
-0.03 (-0.1%)
At close:
31.17 USD
+0.04 (+0.13%)
After Hours:

This ALGM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ALGM Profitability Analysis

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 4 of the past 5 years.
  • In the past 5 years ALGM always reported a positive cash flow from operatings.
ALGM Yearly Net Income VS EBIT VS OCF VS FCFALGM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • ALGM has a Return On Assets (-0.93%) which is comparable to the rest of the industry.
  • With a Return On Equity value of -1.37%, ALGM perfoms like the industry average, outperforming 45.22% of the companies in the same industry.
  • With a Return On Invested Capital value of 0.04%, ALGM perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
Industry RankSector Rank
ROA -0.93%
ROE -1.37%
ROIC 0.04%
ROA(3y)6.9%
ROA(5y)7.3%
ROE(3y)8.35%
ROE(5y)8.88%
ROIC(3y)N/A
ROIC(5y)N/A
ALGM Yearly ROA, ROE, ROICALGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • ALGM has a Operating Margin of 0.07%. This is comparable to the rest of the industry: ALGM outperforms 47.83% of its industry peers.
  • The Gross Margin of ALGM (44.96%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of ALGM has grown nicely.
Industry RankSector Rank
OM 0.07%
PM (TTM) N/A
GM 44.96%
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%
ALGM Yearly Profit, Operating, Gross MarginsALGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 0 20 40

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7

2. ALGM Health Analysis

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 reduced compared to 1 year ago.
  • ALGM has less shares outstanding than it did 5 years ago.
  • ALGM has a worse debt/assets ratio than last year.
ALGM Yearly Shares OutstandingALGM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ALGM Yearly Total Debt VS Total AssetsALGM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 8.38 indicates that ALGM is not in any danger for bankruptcy at the moment.
  • ALGM has a better Altman-Z score (8.38) than 66.96% of its industry peers.
  • The Debt to FCF ratio of ALGM is 2.40, which is a good value as it means it would take ALGM, 2.40 years of fcf income to pay off all of its debts.
  • ALGM's Debt to FCF ratio of 2.40 is fine compared to the rest of the industry. ALGM outperforms 65.22% of its industry peers.
  • A Debt/Equity ratio of 0.30 indicates that ALGM is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.30, ALGM is doing worse than 60.00% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for ALGM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 8.38
ROIC/WACC0
WACC11.47%
ALGM Yearly LT Debt VS Equity VS FCFALGM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 3.65 indicates that ALGM has no problem at all paying its short term obligations.
  • ALGM has a Current ratio (3.65) which is comparable to the rest of the industry.
  • ALGM has a Quick Ratio of 2.39. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.39, ALGM is in line with its industry, outperforming 57.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.65
Quick Ratio 2.39
ALGM Yearly Current Assets VS Current LiabilitesALGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALGM Growth Analysis

3.1 Past

  • The earnings per share for ALGM have decreased by 0.00% in the last year.
  • ALGM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -32.49% yearly.
  • Looking at the last year, ALGM shows a quite strong growth in Revenue. The Revenue has grown by 8.67% in the last year.
  • Measured over the past years, ALGM shows a small growth in Revenue. The Revenue has been growing by 2.21% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%114.29%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%

3.2 Future

  • Based on estimates for the next years, ALGM will show a very strong growth in Earnings Per Share. The EPS will grow by 56.52% on average per year.
  • The Revenue is expected to grow by 16.55% on average over the next years. This is quite good.
EPS Next Y125.71%
EPS Next 2Y102.59%
EPS Next 3Y85.91%
EPS Next 5Y56.52%
Revenue Next Year23.04%
Revenue Next 2Y20.46%
Revenue Next 3Y19.92%
Revenue Next 5Y16.55%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ALGM Yearly Revenue VS EstimatesALGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5 2

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4

4. ALGM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 72.40, the valuation of ALGM can be described as expensive.
  • ALGM's Price/Earnings is on the same level as the industry average.
  • ALGM is valuated expensively when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 31.60, ALGM can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM is on the same level as its industry peers.
  • ALGM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.84.
Industry RankSector Rank
PE 72.4
Fwd PE 31.6
ALGM Price Earnings VS Forward Price EarningsALGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • ALGM's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 68.70% of the companies in the same industry are more expensive than ALGM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 48.08
EV/EBITDA 88.93
ALGM Per share dataALGM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

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 85.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y102.59%
EPS Next 3Y85.91%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ALGM Dividend Analysis

5.1 Amount

  • ALGM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ALGM Fundamentals: All Metrics, Ratios and Statistics

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (3/13/2026, 8:09:31 PM)

After market: 31.17 +0.04 (+0.13%)

31.13

-0.03 (-0.1%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-06
Inst Owners74.55%
Inst Owner Change-1.62%
Ins Owners0.63%
Ins Owner Change-0.04%
Market Cap5.77B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts84.44
Price Target46.75 (50.18%)
Short Float %8.87%
Short Ratio4.1
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2.9%
Min EPS beat(2)2.66%
Max EPS beat(2)3.13%
EPS beat(4)4
Avg EPS beat(4)7.15%
Min EPS beat(4)2.66%
Max EPS beat(4)17.65%
EPS beat(8)8
Avg EPS beat(8)14.95%
EPS beat(12)12
Avg EPS beat(12)11.55%
EPS beat(16)16
Avg EPS beat(16)10.54%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.8%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)2.03%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)3.38%
PT rev (3m)18.79%
EPS NQ rev (1m)2.24%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 72.4
Fwd PE 31.6
P/S 6.87
P/FCF 48.08
P/OCF 39.05
P/B 5.99
P/tB 11.21
EV/EBITDA 88.93
EPS(TTM)0.43
EY1.38%
EPS(NY)0.98
Fwd EY3.16%
FCF(TTM)0.65
FCFY2.08%
OCF(TTM)0.8
OCFY2.56%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.58
PEG (5Y)N/A
Graham Number7.09
Profitability
Industry RankSector Rank
ROA -0.93%
ROE -1.37%
ROCE 0.05%
ROIC 0.04%
ROICexc 0.04%
ROICexgc 0.07%
OM 0.07%
PM (TTM) N/A
GM 44.96%
FCFM 14.29%
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-Score5
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Debt/EBITDA 4.31
Cap/Depr 42.18%
Cap/Sales 3.3%
Interest Coverage 250
Cash Conversion 222.61%
Profit Quality N/A
Current Ratio 3.65
Quick Ratio 2.39
Altman-Z 8.38
F-Score5
WACC11.47%
ROIC/WACC0
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)0%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%114.29%
EPS Next Y125.71%
EPS Next 2Y102.59%
EPS Next 3Y85.91%
EPS Next 5Y56.52%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%
Revenue Next Year23.04%
Revenue Next 2Y20.46%
Revenue Next 3Y19.92%
Revenue Next 5Y16.55%
EBIT growth 1Y-97.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year177.32%
EBIT Next 3Y89.56%
EBIT Next 5Y55.41%
FCF growth 1Y58.38%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-31.76%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%

ALLEGRO MICROSYSTEMS INC / ALGM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ALLEGRO MICROSYSTEMS INC (ALGM) stock?

ChartMill assigns a fundamental rating of 5 / 10 to ALGM.


What is the valuation status for ALGM stock?

ChartMill assigns a valuation rating of 4 / 10 to ALLEGRO MICROSYSTEMS INC (ALGM). This can be considered as Fairly Valued.


What is the profitability of ALGM stock?

ALLEGRO MICROSYSTEMS INC (ALGM) has a profitability rating of 4 / 10.


What is the valuation of ALLEGRO MICROSYSTEMS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALLEGRO MICROSYSTEMS INC (ALGM) is 72.4 and the Price/Book (PB) ratio is 5.99.


How financially healthy is ALLEGRO MICROSYSTEMS INC?

The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 7 / 10.