ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation

NASDAQ:ALGM • US01749D1054

Current stock price

43.61 USD
+1.34 (+3.17%)
At close:
44.64 USD
+1.03 (+2.36%)
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

  • 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.
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

  • ALGM has a Return On Assets of -0.93%. This is comparable to the rest of the industry: ALGM outperforms 46.09% of its industry peers.
  • The Return On Equity of ALGM (-1.37%) is comparable to the rest of the 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

  • With a Operating Margin value of 0.07%, ALGM perfoms like the industry average, outperforming 46.96% of the companies in the same industry.
  • ALGM's Gross Margin of 44.96% is in line compared to the rest of the industry. ALGM outperforms 53.91% of 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.
  • The debt/assets ratio for ALGM is higher compared to a year ago.
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

  • ALGM has an Altman-Z score of 11.07. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
  • ALGM has a better Altman-Z score (11.07) than 69.57% 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.
  • Looking at the Debt to FCF ratio, with a value of 2.40, ALGM is in the better half of 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.
  • ALGM's Debt to Equity ratio of 0.30 is on the low side compared to the rest of the industry. ALGM is outperformed by 60.00% of its industry peers.
  • Although ALGM's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 11.07
ROIC/WACC0
WACC12.05%
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.
  • ALGM has a Quick Ratio of 2.39. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
  • ALGM's Quick ratio of 2.39 is in line compared 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

  • ALGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
  • ALGM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -32.49% yearly.
  • 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.
  • Based on estimates for the next years, ALGM will show a quite strong growth in Revenue. The Revenue will grow by 16.55% on average per year.
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

  • 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

  • With a Price/Earnings ratio of 101.42, ALGM can be considered very expensive at the moment.
  • ALGM's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.47. ALGM is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 44.27, the valuation of ALGM can be described as expensive.
  • 60.87% of the companies in the same industry are more expensive than ALGM, based on the Price/Forward Earnings ratio.
  • ALGM is valuated expensively when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 101.42
Fwd PE 44.27
ALGM Price Earnings VS Forward Price EarningsALGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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.
  • ALGM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALGM is cheaper than 66.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF 67.35
EV/EBITDA 120.04
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.
  • A more expensive valuation may be justified as ALGM's earnings are expected to grow with 85.91% in the coming years.
PEG (NY)0.81
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

  • ALGM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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ALGM Fundamentals: All Metrics, Ratios and Statistics

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (4/23/2026, 8:00:01 PM)

After market: 44.64 +1.03 (+2.36%)

43.61

+1.34 (+3.17%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-07
Inst Owners74.55%
Inst Owner Change-0.03%
Ins Owners0.62%
Ins Owner Change-0.05%
Market Cap8.08B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts84.21
Price Target46.53 (6.7%)
Short Float %9.63%
Short Ratio5.2
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)-0.46%
PT rev (3m)18.75%
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%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 101.42
Fwd PE 44.27
P/S 9.62
P/FCF 67.35
P/OCF 54.71
P/B 8.39
P/tB 15.71
EV/EBITDA 120.04
EPS(TTM)0.43
EY0.99%
EPS(NY)0.98
Fwd EY2.26%
FCF(TTM)0.65
FCFY1.48%
OCF(TTM)0.8
OCFY1.83%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.81
PEG (5Y)N/A
Graham Number7.0901 (-83.74%)
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 11.07
F-Score5
WACC12.05%
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 Year193.63%
EBIT Next 3Y86.25%
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%.