ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis

NASDAQ:ALGM • US01749D1054

38.93 USD
+2.67 (+7.36%)
At close: Feb 20, 2026
38.93 USD
0 (0%)
After Hours: 2/20/2026, 8:16:39 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

ALGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 114 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ALGM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

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.
  • 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

  • With a Return On Assets value of -0.93%, ALGM perfoms like the industry average, outperforming 42.98% 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 42.98% of the companies in the same industry.
  • The Return On Invested Capital of ALGM (0.04%) is comparable to the rest of the 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 has a Operating Margin (0.07%) which is comparable to the rest of the industry.
  • Looking at the Gross Margin, with a value of 44.96%, ALGM is in line with its industry, outperforming 52.63% of the companies in the same industry.
  • 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. Health

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
  • 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 10.27 indicates that ALGM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 10.27, ALGM is in the better half of the industry, outperforming 73.68% 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.
  • ALGM has a better Debt to FCF ratio (2.40) than 64.91% of its industry peers.
  • 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 in line compared to the rest of the industry. ALGM outperforms 40.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 10.27
ROIC/WACC0
WACC10.77%
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.
  • With a decent Current ratio value of 3.65, ALGM is doing good in the industry, outperforming 60.53% of the companies in the same 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 has a Quick ratio of 2.39. This is comparable to the rest of the industry: ALGM outperforms 57.89% 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. Growth

3.1 Past

  • ALGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
  • 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.
  • 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)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

  • The Earnings Per Share is expected to grow by 73.25% on average over the next years. This is a very strong growth
  • ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.72% yearly.
EPS Next Y125.71%
EPS Next 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue Next Year22.71%
Revenue Next 2Y20.52%
Revenue Next 3Y20.07%
Revenue Next 5Y18.72%

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 500M 1B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 90.53, which means the current valuation is very expensive for ALGM.
  • ALGM's Price/Earnings ratio is in line with the industry average.
  • ALGM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.99.
  • With a Price/Forward Earnings ratio of 39.35, ALGM can be considered very expensive at the moment.
  • ALGM's Price/Forward Earnings is on the same level as the industry average.
  • ALGM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 28.02, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 90.53
Fwd PE 39.35
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

  • ALGM's Enterprise Value to EBITDA is on the same level as the industry average.
  • 64.04% 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 60.12
EV/EBITDA 110.71
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 86.73% in the coming years.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y103.02%
EPS Next 3Y86.73%

More info and screens

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

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (2/20/2026, 8:16:39 PM)

After market: 38.93 0 (0%)

38.93

+2.67 (+7.36%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-06
Inst Owners75.11%
Inst Owner Change-1.6%
Ins Owners0.65%
Ins Owner Change0.01%
Market Cap7.21B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts83.33
Price Target45.22 (16.16%)
Short Float %10%
Short Ratio4.9
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)15.4%
PT rev (3m)14.9%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)1.34%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)3.42%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)0.84%
Valuation
Industry RankSector Rank
PE 90.53
Fwd PE 39.35
P/S 8.59
P/FCF 60.12
P/OCF 48.84
P/B 7.49
P/tB 14.02
EV/EBITDA 110.71
EPS(TTM)0.43
EY1.1%
EPS(NY)0.99
Fwd EY2.54%
FCF(TTM)0.65
FCFY1.66%
OCF(TTM)0.8
OCFY2.05%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.72
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 10.27
F-Score5
WACC10.77%
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 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%
Revenue Next Year22.71%
Revenue Next 2Y20.52%
Revenue Next 3Y20.07%
Revenue Next 5Y18.72%
EBIT growth 1Y-97.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year194.32%
EBIT Next 3Y86.43%
EBIT Next 5Y71.82%
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 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 90.53 and the Price/Book (PB) ratio is 7.49.


How financially healthy is ALLEGRO MICROSYSTEMS INC?

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