ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation
NASDAQ:ALGM • US01749D1054
33.17 USD
+0.3 (+0.91%)
At close: Mar 10, 2026
33.17 USD
0 (0%)
After Hours: 3/10/2026, 8:05:47 PM
This ALGM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ALGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. While ALGM has a great health rating, its profitability is only average at the moment. ALGM has a decent growth rate and is not valued too expensively.
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.
- Of the past 5 years ALGM 4 years were profitable.
- In the past 5 years ALGM always reported a positive cash flow from operatings.
1.2 Ratios
- ALGM's Return On Assets of -0.93% is in line compared to the rest of the industry. ALGM outperforms 45.22% of its industry peers.
- ALGM's Return On Equity of -1.37% is in line compared to the rest of the industry. ALGM outperforms 45.22% 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 47.83% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- ALGM's Operating Margin of 0.07% is in line compared to the rest of the industry. ALGM outperforms 47.83% of its industry peers.
- Looking at the Gross Margin, with a value of 44.96%, ALGM is in line with its industry, outperforming 53.04% of the companies in the same industry.
- ALGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. ALGM Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALGM is destroying value.
- Compared to 1 year ago, ALGM has less shares outstanding
- 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 8.87. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.87, ALGM is in the better half of the industry, outperforming 66.96% 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.
- The Debt to FCF ratio of ALGM (2.40) is better than 65.22% 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 has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: ALGM underperforms 60.00% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ALGM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 8.87 |
ROIC/WACC0
WACC11.36%
2.3 Liquidity
- A Current Ratio of 3.65 indicates that ALGM has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.65, ALGM is in line with its industry, outperforming 60.00% of the companies in the same industry.
- A Quick Ratio of 2.39 indicates that ALGM has no problem at all paying its short term obligations.
- ALGM has a Quick ratio (2.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.39 |
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%.
- The earnings per share for ALGM have been decreasing by -32.49% on average. This is quite bad
- The Revenue has grown by 8.67% in the past year. This is quite good.
- 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
- 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.
- ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.55% yearly.
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.
- 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. ALGM Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 77.14, the valuation of ALGM can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ALGM is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (26.25), we can say ALGM is valued expensively.
- Based on the Price/Forward Earnings ratio of 33.68, the valuation of ALGM can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of ALGM to the average of the S&P500 Index (24.39), we can say ALGM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.14 | ||
| Fwd PE | 33.68 |
4.2 Price Multiples
- ALGM's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALGM indicates a somewhat cheap valuation: ALGM is cheaper than 68.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.23 | ||
| EV/EBITDA | 94.62 |
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)0.61
PEG (5Y)N/A
EPS Next 2Y102.59%
EPS Next 3Y85.91%
5. ALGM Dividend Analysis
5.1 Amount
- ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ALGM Fundamentals: All Metrics, Ratios and Statistics
33.17
+0.3 (+0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)05-06 2026-05-06/amc
Inst Owners74.55%
Inst Owner Change-1.62%
Ins Owners0.63%
Ins Owner Change-0.04%
Market Cap6.15B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts84.44
Price Target46.75 (40.94%)
Short Float %8.87%
Short Ratio4.1
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)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)3.38%
PT rev (3m)18.79%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.14 | ||
| Fwd PE | 33.68 | ||
| P/S | 7.32 | ||
| P/FCF | 51.23 | ||
| P/OCF | 41.61 | ||
| P/B | 6.38 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 94.62 |
EPS(TTM)0.43
EY1.3%
EPS(NY)0.98
Fwd EY2.97%
FCF(TTM)0.65
FCFY1.95%
OCF(TTM)0.8
OCFY2.4%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.61
PEG (5Y)N/A
Graham Number7.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.87 |
F-Score5
WACC11.36%
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 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 77.14 and the Price/Book (PB) ratio is 6.38.
How financially healthy is ALLEGRO MICROSYSTEMS INC?
The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 7 / 10.