ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation

NASDAQ:ALGM • US01749D1054

Current stock price

28.04 USD
-2.08 (-6.91%)
At close:
28 USD
-0.04 (-0.14%)
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

  • Looking at the Return On Assets, with a value of -0.93%, ALGM is in line with its industry, outperforming 45.22% of the companies in the same industry.
  • ALGM's Return On Equity of -1.37% is in line compared to the rest of the industry. ALGM outperforms 46.09% of its industry peers.
  • ALGM's Return On Invested Capital of 0.04% is in line compared to the rest of the industry. ALGM outperforms 46.96% of its industry peers.
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 (0.07%) which is comparable to the rest of the industry.
  • The Gross Margin of ALGM (44.96%) is comparable to the rest of the industry.
  • ALGM's Gross Margin has improved in the last couple of years.
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

  • ALGM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, ALGM has less shares outstanding
  • Compared to 5 years ago, ALGM has less shares outstanding
  • 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 8.14 indicates that ALGM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 8.14, ALGM is in the better half of the industry, outperforming 68.70% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 2.40, ALGM is doing good in the industry, outperforming 64.35% of the companies in the same industry.
  • 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 in line with its industry, outperforming 41.74% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 8.14
ROIC/WACC0
WACC11.63%
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

  • ALGM has a Current Ratio of 3.65. This indicates that ALGM is financially healthy and has no problem in meeting 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.
  • The Quick ratio of ALGM (2.39) is comparable to the rest of the 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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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.
  • ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
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

  • ALGM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.52% yearly.
  • 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

  • ALGM is valuated quite expensively with a Price/Earnings ratio of 65.21.
  • The rest of the industry has a similar Price/Earnings ratio as ALGM.
  • Compared to an average S&P500 Price/Earnings ratio of 24.75, ALGM is valued quite expensively.
  • The Price/Forward Earnings ratio is 28.47, which means the current valuation is very expensive for ALGM.
  • ALGM's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.10. ALGM is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 65.21
Fwd PE 28.47
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALGM.
  • Based on the Price/Free Cash Flow ratio, ALGM is valued a bit cheaper than 67.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.3
EV/EBITDA 86.11
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.
  • A more expensive valuation may be justified as ALGM's earnings are expected to grow with 85.91% in the coming years.
PEG (NY)0.52
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

  • 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 (3/30/2026, 8:00:01 PM)

After market: 28 -0.04 (-0.14%)

28.04

-2.08 (-6.91%)

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-0.05%
Market Cap5.20B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts84.44
Price Target46.75 (66.73%)
Short Float %8.35%
Short Ratio3.86
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)2.41%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 65.21
Fwd PE 28.47
P/S 6.19
P/FCF 43.3
P/OCF 35.17
P/B 5.4
P/tB 10.1
EV/EBITDA 86.11
EPS(TTM)0.43
EY1.53%
EPS(NY)0.98
Fwd EY3.51%
FCF(TTM)0.65
FCFY2.31%
OCF(TTM)0.8
OCFY2.84%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.52
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 8.14
F-Score5
WACC11.63%
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 65.21 and the Price/Book (PB) ratio is 5.4.


How financially healthy is ALLEGRO MICROSYSTEMS INC?

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