ALLEGRO MICROSYSTEMS INC (ALGM)
US01749D1054 - Common Stock
Taking everything into account, ALGM scores 4 out of 10 in our fundamental rating. ALGM was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of ALGM get a neutral evaluation. Nothing too spectacular is happening here. ALGM is valued expensive and it does not seem to be growing.
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.
In the past 5 years ALGM has always been profitable.
In the past 5 years ALGM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALGM (-1.68%) is worse than 60.19% of its industry peers.
The Return On Equity of ALGM (-2.68%) is worse than 60.19% of its industry peers.
ALGM's Return On Invested Capital of 4.12% is fine compared to the rest of the industry. ALGM outperforms 61.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALGM is above the industry average of 11.05%.
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
In the last couple of years the Profit Margin of ALGM has grown nicely.
The Operating Margin of ALGM (7.94%) is better than 61.11% of its industry peers.
ALGM's Operating Margin has improved in the last couple of years.
ALGM's Gross Margin of 49.13% is fine compared to the rest of the industry. ALGM outperforms 62.96% of its industry peers.
In the last couple of years the Gross Margin of ALGM has grown nicely.
| 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
ALGM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALGM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALGM has been increased compared to 5 years ago.
The debt/assets ratio for ALGM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.14 indicates that ALGM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.14, ALGM is doing good in the industry, outperforming 63.89% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 6.14, ALGM perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
ALGM has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, ALGM is doing worse than 68.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 5.14 |
ROIC/WACC0.28
WACC14.76%
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.
The Current ratio of ALGM (4.22) is better than 66.67% of its industry peers.
ALGM has a Quick Ratio of 2.80. This indicates that ALGM is financially healthy and has no problem in meeting 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
The earnings per share for ALGM have decreased strongly by -54.97% in the last year.
Measured over the past years, ALGM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.75% on average per year.
The Revenue for ALGM has decreased by -20.72% in the past year. This is quite bad
ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
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
The Earnings Per Share is expected to grow by 4.66% on average over the next years.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y-80.89%
EPS Next 2Y-31.97%
EPS Next 3Y-4.45%
EPS Next 5Y4.66%
Revenue Next Year-31.57%
Revenue Next 2Y-9.53%
Revenue Next 3Y0.44%
Revenue Next 5Y4.48%
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 decreasing.
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 30.96, the valuation of ALGM can be described as expensive.
Based on the Price/Earnings ratio, ALGM is valued a bit cheaper than the industry average as 67.59% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (28.96), we can say ALGM is valued inline with the index average.
ALGM is valuated quite expensively with a Price/Forward Earnings ratio of 33.44.
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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.96 | ||
| Fwd PE | 33.44 |
4.2 Price Multiples
ALGM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALGM is cheaper than 61.11% of the companies in the same industry.
ALGM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALGM is cheaper than 62.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.18 | ||
| EV/EBITDA | 28.39 |
4.3 Compensation for Growth
The decent profitability rating of ALGM may justify a higher PE ratio.
ALGM's earnings are expected to decrease with -4.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.63
EPS Next 2Y-31.97%
EPS Next 3Y-4.45%
5. Dividend
5.1 Amount
No dividends for ALGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALLEGRO MICROSYSTEMS INC
NASDAQ:ALGM (11/22/2024, 11:53:01 AM)
21.05
+0.3 (+1.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.96 | ||
| Fwd PE | 33.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.68% | ||
| ROE | -2.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 49.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-54.97%
EPS 3Y105.79%
EPS 5Y
EPS Q2Q%
EPS Next Y-80.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.72%
Revenue growth 3Y21.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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