33.81 USD
-0.18 (-0.53%)
34 USD
+0.19 (+0.56%)
Taking everything into account, ALGM scores 4 out of 10 in our fundamental rating. ALGM was compared to 113 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ALGM had positive earnings in the past year.
- 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.
1.2 Ratios
- The Return On Assets of ALGM (-2.05%) is worse than 60.18% of its industry peers.
- ALGM has a Return On Equity (-3.00%) which is in line with 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
- Looking at the Gross Margin, with a value of 44.61%, ALGM is in line with its industry, outperforming 50.44% of the companies in the same industry.
- ALGM's Gross Margin has improved in the last couple of years.
- The Profit Margin and Operating Margin are not available for ALGM so they could not be analyzed.
| 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.
- ALGM has less shares outstanding than it did 1 year ago.
- ALGM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ALGM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.32 indicates that ALGM is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 9.32, ALGM is doing good in the industry, outperforming 67.26% of the companies in the same industry.
- 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 56.64% 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.
- The Debt to Equity ratio of ALGM (0.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 9.32 |
ROIC/WACCN/A
WACC10.85%
2.3 Liquidity
- A Current Ratio of 3.89 indicates that ALGM has no problem at all paying its short term obligations.
- The Current ratio of ALGM (3.89) is better than 62.83% of its industry peers.
- ALGM has a Quick Ratio of 2.48. 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 2.48, ALGM is in the better half of the industry, outperforming 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
- The earnings per share for ALGM have decreased strongly by -48.53% in the last year.
- The earnings per share for ALGM have been decreasing by -32.49% on average. This is quite bad
- The Revenue has decreased by -7.23% in the past 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)-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
- Based on estimates for the next years, ALGM will show a very strong growth in Earnings Per Share. The EPS will grow by 87.41% on average per year.
- The Revenue is expected to grow by 19.38% on average over the next years. This is quite good.
EPS Next Y123.02%
EPS Next 2Y103.27%
EPS Next 3Y87.41%
EPS Next 5YN/A
Revenue Next Year20.87%
Revenue Next 2Y19.21%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ALGM is valuated quite expensively with a Price/Earnings ratio of 96.60.
- Compared to the rest of the industry, the Price/Earnings ratio of ALGM is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (27.32), we can say ALGM is valued expensively.
- Based on the Price/Forward Earnings ratio of 34.09, the valuation of ALGM can be described as expensive.
- Based on the Price/Forward Earnings ratio, ALGM is valued a bit cheaper than 64.60% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ALGM to the average of the S&P500 Index (24.32), we can say ALGM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.6 | ||
| Fwd PE | 34.09 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.96 | ||
| EV/EBITDA | 115.09 |
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.
- A more expensive valuation may be justified as ALGM's earnings are expected to grow with 87.41% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y103.27%
EPS Next 3Y87.41%
5. Dividend
5.1 Amount
- No dividends for ALGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
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 3 / 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 96.6 and the Price/Book (PB) ratio is 6.63.
How financially healthy is ALLEGRO MICROSYSTEMS INC?
The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 6 / 10.