ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation

NASDAQ:ALGM • US01749D1054

Current stock price

37.02 USD
+1.15 (+3.21%)
At close:
37.18 USD
+0.16 (+0.43%)
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.
  • Of the past 5 years ALGM 4 years were profitable.
  • 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

  • With a Return On Assets value of -0.93%, ALGM perfoms like the industry average, outperforming 46.96% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -1.37%, ALGM is in line with its industry, outperforming 47.83% of the companies in the same industry.
  • With a Return On Invested Capital value of 0.04%, ALGM perfoms like the industry average, outperforming 46.96% 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's Operating Margin of 0.07% is in line compared to the rest of the industry. ALGM outperforms 46.96% of its industry peers.
  • ALGM has a Gross Margin (44.96%) which is in line with its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALGM is destroying value.
  • Compared to 1 year ago, ALGM has less shares outstanding
  • The number of shares outstanding for ALGM has been reduced compared to 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 9.53 indicates that ALGM is not in any danger for bankruptcy at the moment.
  • ALGM has a better Altman-Z score (9.53) than 68.70% 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 64.35% 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.
  • ALGM's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. ALGM outperforms 40.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 9.53
ROIC/WACC0
WACC11.56%
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.
  • A Quick Ratio of 2.39 indicates that ALGM has no problem at all paying its short term obligations.
  • ALGM has a Quick ratio of 2.39. This is comparable to the rest of the industry: ALGM outperforms 56.52% of its industry peers.
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.
  • 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 quite strong growth in Revenue. The Revenue has grown by 8.67% in the last year.
  • The Revenue has been growing slightly by 2.21% on average over the past years.
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.
  • ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.55% yearly.
EPS Next Y125.71%
EPS Next 2Y102.59%
EPS Next 3Y85.91%
EPS Next 5Y56.52%
Revenue Next Year23.05%
Revenue Next 2Y20.46%
Revenue Next 3Y19.88%
Revenue Next 5Y16.55%

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.
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

  • ALGM is valuated quite expensively with a Price/Earnings ratio of 86.09.
  • ALGM's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.91. ALGM is valued rather expensively when compared to this.
  • ALGM is valuated quite expensively with a Price/Forward Earnings ratio of 37.58.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ALGM.
  • ALGM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.68.
Industry RankSector Rank
PE 86.09
Fwd PE 37.58
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGM is on the same level as its industry peers.
  • 66.09% 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 57.17
EV/EBITDA 102.16
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

  • The 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)0.68
PEG (5Y)N/A
EPS Next 2Y102.59%
EPS Next 3Y85.91%

More info and screens

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

0

5. ALGM Dividend Analysis

5.1 Amount

  • No dividends for ALGM!.
Industry RankSector Rank
Dividend Yield 0%

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ALGM Fundamentals: All Metrics, Ratios and Statistics

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (4/9/2026, 8:11:40 PM)

After market: 37.18 +0.16 (+0.43%)

37.02

+1.15 (+3.21%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-06
Inst Owners74.55%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change-0.05%
Market Cap6.86B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts84.21
Price Target46.75 (26.28%)
Short Float %9.15%
Short Ratio4.39
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)0%
PT rev (3m)19.31%
EPS NQ rev (1m)-2%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.8%
Valuation
Industry RankSector Rank
PE 86.09
Fwd PE 37.58
P/S 8.17
P/FCF 57.17
P/OCF 46.44
P/B 7.12
P/tB 13.33
EV/EBITDA 102.16
EPS(TTM)0.43
EY1.16%
EPS(NY)0.98
Fwd EY2.66%
FCF(TTM)0.65
FCFY1.75%
OCF(TTM)0.8
OCFY2.15%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.68
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 9.53
F-Score5
WACC11.56%
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 Year23.05%
Revenue Next 2Y20.46%
Revenue Next 3Y19.88%
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.


Can you provide the profitability details for ALLEGRO MICROSYSTEMS INC?

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


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 125.71% in the next year.


Is the dividend of ALLEGRO MICROSYSTEMS INC sustainable?

The dividend rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 0 / 10 and the dividend payout ratio is 0%.