26.69 USD
+0.31 (+1.18%)
We assign a fundamental rating of 4 out of 10 to ALGM. ALGM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of ALGM is average, but 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.
In the past year ALGM had a positive cash flow from operations.
ALGM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ALGM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.05%, ALGM is doing worse than 60.18% of the companies in the same industry.
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
ALGM's Gross Margin of 44.61% is in line compared to the rest of the industry. ALGM outperforms 50.44% 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 | 44.61% |
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.
Compared to 5 years ago, ALGM has less shares outstanding
Compared to 1 year ago, ALGM has a worse debt to assets ratio.
2.2 Solvency
ALGM has an Altman-Z score of 7.45. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.45, ALGM is doing good in the industry, outperforming 65.49% 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 has a Debt to FCF ratio of 5.05. This is comparable 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.
ALGM's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. ALGM outperforms 41.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 7.45 |
ROIC/WACCN/A
WACC10.84%
2.3 Liquidity
ALGM has a Current Ratio of 3.89. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
ALGM's Current ratio of 3.89 is fine compared to the rest of the industry. ALGM outperforms 62.83% of its industry peers.
A Quick Ratio of 2.48 indicates that ALGM has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.48, ALGM is doing good in 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
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.53%.
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.
ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.38% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
ALGM is valuated quite expensively with a Price/Earnings ratio of 76.26.
Compared to the rest of the industry, the Price/Earnings ratio of ALGM is on the same level as its industry peers.
ALGM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 26.91, ALGM can be considered very expensive at the moment.
64.60% of the companies in the same industry are more expensive than ALGM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, ALGM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.26 | ||
| Fwd PE | 26.91 |
4.2 Price Multiples
ALGM's Enterprise Value to EBITDA is on the same level as the industry average.
ALGM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.8 | ||
| EV/EBITDA | 90.47 |
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)0.62
PEG (5Y)N/A
EPS Next 2Y103.27%
EPS Next 3Y87.41%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:ALGM (1/2/2026, 3:06:08 PM)
26.69
+0.31 (+1.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners75.12%
Inst Owner Change-6.37%
Ins Owners0.66%
Ins Owner Change0.1%
Market Cap4.94B
Revenue(TTM)788.39M
Net Income(TTM)-28.37M
Analysts83.33
Price Target39.19 (46.83%)
Short Float %7.3%
Short Ratio4.24
Dividend
| Industry Rank | Sector 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)4.14%
Min EPS beat(2)3.13%
Max EPS beat(2)5.14%
EPS beat(4)4
Avg EPS beat(4)7.84%
Min EPS beat(4)3.13%
Max EPS beat(4)17.65%
EPS beat(8)8
Avg EPS beat(8)15.73%
EPS beat(12)12
Avg EPS beat(12)11.98%
EPS beat(16)16
Avg EPS beat(16)10.58%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)2.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)-0.1%
PT rev (1m)-0.43%
PT rev (3m)1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.62%
EPS NY rev (1m)0.8%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.93%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.26 | ||
| Fwd PE | 26.91 | ||
| P/S | 6.27 | ||
| P/FCF | 86.8 | ||
| P/OCF | 52.48 | ||
| P/B | 5.23 | ||
| P/tB | 10.09 | ||
| EV/EBITDA | 90.47 |
EPS(TTM)0.35
EY1.31%
EPS(NY)0.99
Fwd EY3.72%
FCF(TTM)0.31
FCFY1.15%
OCF(TTM)0.51
OCFY1.91%
SpS4.26
BVpS5.1
TBVpS2.65
PEG (NY)0.62
PEG (5Y)N/A
Graham Number6.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.05% | ||
| ROE | -3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.61% | ||
| FCFM | 7.22% |
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-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 5.12 | ||
| Cap/Depr | 57.39% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 168.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 7.45 |
F-Score3
WACC10.84%
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)-48.53%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%62.5%
EPS Next Y123.02%
EPS Next 2Y103.27%
EPS Next 3Y87.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%14.36%
Revenue Next Year20.87%
Revenue Next 2Y19.21%
Revenue Next 3Y19.38%
Revenue Next 5YN/A
EBIT growth 1Y-113.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year194.32%
EBIT Next 3Y86.13%
EBIT Next 5YN/A
FCF growth 1Y-26.17%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-52.4%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%
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 76.26 and the Price/Book (PB) ratio is 5.23.
How financially healthy is ALLEGRO MICROSYSTEMS INC?
The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 6 / 10.