ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
USA - NASDAQ:ALGM - US01749D1054 - Common Stock
30.49 USD
+1.43 (+4.94%)
30.49 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ALGM. ALGM was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ALGM is valied quite expensively at the moment, while it does show 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.
Of the past 5 years ALGM 4 years were profitable.
ALGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALGM has a Return On Assets of -4.94%. This is in the lower half of the industry: ALGM underperforms 66.07% of its industry peers.
Looking at the Return On Equity, with a value of -7.43%, ALGM is doing worse than 63.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.94% | ||
| ROE | -7.43% | ||
| 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
ALGM's Gross Margin of 44.39% is in line compared to the rest of the industry. ALGM outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of ALGM has grown nicely.
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 | 44.39% |
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.
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.
2.2 Solvency
ALGM has an Altman-Z score of 7.99. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
ALGM has a Altman-Z score of 7.99. This is in the better half of the industry: ALGM outperforms 66.07% of its industry peers.
The Debt to FCF ratio of ALGM is 6.43, which is on the high side as it means it would take ALGM, 6.43 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.43, ALGM perfoms like the industry average, outperforming 55.36% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that ALGM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, ALGM is not doing good in the industry: 63.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 7.99 |
ROIC/WACCN/A
WACC11.59%
2.3 Liquidity
ALGM has a Current Ratio of 3.70. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
ALGM has a Current ratio of 3.70. This is comparable to the rest of the industry: ALGM outperforms 59.82% of its industry peers.
A Quick Ratio of 2.26 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a Quick ratio (2.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.00%.
Measured over the past years, ALGM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -32.49% on average per year.
ALGM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.82%.
ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-70%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)-18.82%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%21.86%
3.2 Future
The Earnings Per Share is expected to grow by 83.54% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.67% on average over the next years. This is quite good.
EPS Next Y122.95%
EPS Next 2Y105.12%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue Next Year18.64%
Revenue Next 2Y18.63%
Revenue Next 3Y18.67%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 101.63, the valuation of ALGM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ALGM.
When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (27.69), we can say ALGM is valued expensively.
Based on the Price/Forward Earnings ratio of 30.19, the valuation of ALGM can be described as expensive.
Based on the Price/Forward Earnings ratio, ALGM is valued a bit cheaper than 62.50% of the companies in the same industry.
ALGM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.63 | ||
| Fwd PE | 30.19 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALGM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.14 | ||
| EV/EBITDA | 109.76 |
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.
A more expensive valuation may be justified as ALGM's earnings are expected to grow with 83.54% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y105.12%
EPS Next 3Y83.54%
5. Dividend
5.1 Amount
No dividends for ALGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.49
+1.43 (+4.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.12%
Inst Owner Change0.14%
Ins Owners0.62%
Ins Owner Change0.47%
Market Cap5.64B
Analysts83.33
Price Target38.59 (26.57%)
Short Float %8.27%
Short Ratio6.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)11.39%
Min EPS beat(2)5.14%
Max EPS beat(2)17.65%
EPS beat(4)4
Avg EPS beat(4)13.42%
Min EPS beat(4)5.14%
Max EPS beat(4)25.49%
EPS beat(8)8
Avg EPS beat(8)16.08%
EPS beat(12)12
Avg EPS beat(12)13.14%
EPS beat(16)16
Avg EPS beat(16)11.04%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)0.84%
Max Revenue beat(2)2.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)2.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.58%
Revenue beat(12)4
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0%
PT rev (3m)14.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.29%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.63 | ||
| Fwd PE | 30.19 | ||
| P/S | 7.41 | ||
| P/FCF | 116.14 | ||
| P/OCF | 63.15 | ||
| P/B | 6.11 | ||
| P/tB | 12.19 | ||
| EV/EBITDA | 109.76 |
EPS(TTM)0.3
EY0.98%
EPS(NY)1.01
Fwd EY3.31%
FCF(TTM)0.26
FCFY0.86%
OCF(TTM)0.48
OCFY1.58%
SpS4.12
BVpS4.99
TBVpS2.5
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.94% | ||
| ROE | -7.43% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.39% | ||
| FCFM | 6.38% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score2
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.43 | ||
| Debt/EBITDA | 5.86 | ||
| Cap/Depr | 63.43% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 168.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 7.99 |
F-Score2
WACC11.59%
ROIC/WACCN/A
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)-70%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y122.95%
EPS Next 2Y105.12%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.82%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%21.86%
Revenue Next Year18.64%
Revenue Next 2Y18.63%
Revenue Next 3Y18.67%
Revenue Next 5YN/A
EBIT growth 1Y-108.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.77%
EBIT Next 3Y80.06%
EBIT Next 5YN/A
FCF growth 1Y-49.4%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-56.7%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%