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ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis

NASDAQ:ALGM - Nasdaq - US01749D1054 - Common Stock - Currency: USD

27.71  -0.6 (-2.12%)

After market: 28.038 +0.33 (+1.18%)

Fundamental Rating

4

ALGM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM has only an average score on both its financial health and profitability. ALGM does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year ALGM was profitable.
In the past year ALGM had a positive cash flow from operations.
In the past 5 years ALGM has always been 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 50M 100M 150M 200M

1.2 Ratios

ALGM has a Return On Assets of -4.53%. This is in the lower half of the industry: ALGM underperforms 67.59% of its industry peers.
ALGM has a worse Return On Equity (-7.00%) than 65.74% of its industry peers.
ALGM has a Return On Invested Capital of 1.37%. This is comparable to the rest of the industry: ALGM outperforms 48.15% of its industry peers.
ALGM had an Average Return On Invested Capital over the past 3 years of 14.70%. This is above the industry average of 11.31%.
The last Return On Invested Capital (1.37%) for ALGM is well below the 3 year average (14.70%), which needs to be investigated, but indicates that ALGM had better years and this may not be a problem.
Industry RankSector Rank
ROA -4.53%
ROE -7%
ROIC 1.37%
ROA(3y)13.07%
ROA(5y)9.23%
ROE(3y)16.39%
ROE(5y)11.62%
ROIC(3y)14.7%
ROIC(5y)10.57%
ALGM Yearly ROA, ROE, ROICALGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

ALGM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.84%, ALGM is in line with its industry, outperforming 50.93% of the companies in the same industry.
In the last couple of years the Operating Margin of ALGM has grown nicely.
ALGM has a Gross Margin (47.22%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ALGM has grown nicely.
Industry RankSector Rank
OM 2.84%
PM (TTM) N/A
GM 47.22%
OM growth 3Y85.22%
OM growth 5Y8.48%
PM growth 3Y68.44%
PM growth 5Y4.47%
GM growth 3Y5.09%
GM growth 5Y4.4%
ALGM Yearly Profit, Operating, Gross MarginsALGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALGM is creating some value.
The number of shares outstanding for ALGM has been increased compared to 1 year ago.
ALGM has more shares outstanding than it did 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 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 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 6.90 indicates that ALGM is not in any danger for bankruptcy at the moment.
ALGM's Altman-Z score of 6.90 is fine compared to the rest of the industry. ALGM outperforms 69.44% of its industry peers.
ALGM has a debt to FCF ratio of 68.53. This is a negative value and a sign of low solvency as ALGM would need 68.53 years to pay back of all of its debts.
ALGM has a Debt to FCF ratio (68.53) which is in line with its industry peers.
A Debt/Equity ratio of 0.40 indicates that ALGM is not too dependend on debt financing.
ALGM has a worse Debt to Equity ratio (0.40) than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 68.53
Altman-Z 6.9
ROIC/WACC0.12
WACC11.51%
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 200M 400M 600M 800M 1B

2.3 Liquidity

ALGM has a Current Ratio of 4.91. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
ALGM has a Current ratio of 4.91. This is in the better half of the industry: ALGM outperforms 75.00% of its industry peers.
ALGM has a Quick Ratio of 3.00. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.00, ALGM is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.91
Quick Ratio 3
ALGM Yearly Current Assets VS Current LiabilitesALGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M

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2

3. Growth

3.1 Past

ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.95%.
ALGM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.75% yearly.
The Revenue for ALGM has decreased by -28.33% in the past year. This is quite bad
Measured over the past years, ALGM shows a small growth in Revenue. The Revenue has been growing by 7.70% on average per year.
EPS 1Y (TTM)-70.95%
EPS 3Y105.79%
EPS 5Y11.75%
EPS Q2Q%-78.12%
Revenue 1Y (TTM)-28.33%
Revenue growth 3Y21.08%
Revenue growth 5Y7.7%
Sales Q2Q%-30.24%

3.2 Future

The Earnings Per Share is expected to decrease by -2.10% on average over the next years.
ALGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.63% yearly.
EPS Next Y-82.75%
EPS Next 2Y-36.77%
EPS Next 3Y-9.23%
EPS Next 5Y-2.1%
Revenue Next Year-31.29%
Revenue Next 2Y-10%
Revenue Next 3Y-0.92%
Revenue Next 5Y0.63%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less 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 200M 400M 600M 800M 1B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 64.44 indicates a quite expensive valuation of ALGM.
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 (29.35), we can say ALGM is valued expensively.
With a Price/Forward Earnings ratio of 50.97, ALGM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ALGM.
When comparing the Price/Forward Earnings ratio of ALGM to the average of the S&P500 Index (22.10), we can say ALGM is valued expensively.
Industry RankSector Rank
PE 64.44
Fwd PE 50.97
ALGM Price Earnings VS Forward Price EarningsALGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

ALGM's Enterprise Value to EBITDA ratio is in line with the industry average.
ALGM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 929.71
EV/EBITDA 57.82
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 decent profitability rating of ALGM may justify a higher PE ratio.
A cheap valuation may be justified as ALGM's earnings are expected to decrease with -9.23% in the coming years.
PEG (NY)N/A
PEG (5Y)5.48
EPS Next 2Y-36.77%
EPS Next 3Y-9.23%

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0

5. Dividend

5.1 Amount

No dividends for ALGM!.
Industry RankSector Rank
Dividend Yield N/A

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ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (3/7/2025, 8:04:32 PM)

After market: 28.038 +0.33 (+1.18%)

27.71

-0.6 (-2.12%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)05-07 2025-05-07/amc
Inst Owners77.99%
Inst Owner Change-0.77%
Ins Owners0.71%
Ins Owner Change0.07%
Market Cap5.10B
Analysts81.11
Price Target28.8 (3.93%)
Short Float %11.21%
Short Ratio5.01
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)15.45%
Min EPS beat(2)5.42%
Max EPS beat(2)25.49%
EPS beat(4)4
Avg EPS beat(4)22.75%
Min EPS beat(4)5.42%
Max EPS beat(4)44.96%
EPS beat(8)8
Avg EPS beat(8)13.76%
EPS beat(12)12
Avg EPS beat(12)11.67%
EPS beat(16)16
Avg EPS beat(16)10.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-1.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)0.4%
Revenue beat(8)1
Avg Revenue beat(8)-1.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)7
Avg Revenue beat(16)0.25%
PT rev (1m)-0.71%
PT rev (3m)2.9%
EPS NQ rev (1m)3.78%
EPS NQ rev (3m)-40.41%
EPS NY rev (1m)-10.44%
EPS NY rev (3m)-10.78%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 64.44
Fwd PE 50.97
P/S 6.6
P/FCF 929.71
P/OCF 93.92
P/B 5.47
P/tB 10.87
EV/EBITDA 57.82
EPS(TTM)0.43
EY1.55%
EPS(NY)0.54
Fwd EY1.96%
FCF(TTM)0.03
FCFY0.11%
OCF(TTM)0.3
OCFY1.06%
SpS4.2
BVpS5.07
TBVpS2.55
PEG (NY)N/A
PEG (5Y)5.48
Profitability
Industry RankSector Rank
ROA -4.53%
ROE -7%
ROCE 1.64%
ROIC 1.37%
ROICexc 1.53%
ROICexgc 2.48%
OM 2.84%
PM (TTM) N/A
GM 47.22%
FCFM 0.71%
ROA(3y)13.07%
ROA(5y)9.23%
ROE(3y)16.39%
ROE(5y)11.62%
ROIC(3y)14.7%
ROIC(5y)10.57%
ROICexc(3y)21.11%
ROICexc(5y)15.19%
ROICexgc(3y)26.57%
ROICexgc(5y)18.66%
ROCE(3y)17.59%
ROCE(5y)12.75%
ROICexcg growth 3Y80.7%
ROICexcg growth 5Y9.84%
ROICexc growth 3Y59.73%
ROICexc growth 5Y-0.1%
OM growth 3Y85.22%
OM growth 5Y8.48%
PM growth 3Y68.44%
PM growth 5Y4.47%
GM growth 3Y5.09%
GM growth 5Y4.4%
F-Score4
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 68.53
Debt/EBITDA 4.06
Cap/Depr 69.36%
Cap/Sales 6.32%
Interest Coverage 250
Cash Conversion 58.82%
Profit Quality N/A
Current Ratio 4.91
Quick Ratio 3
Altman-Z 6.9
F-Score4
WACC11.51%
ROIC/WACC0.12
Cap/Depr(3y)158.67%
Cap/Depr(5y)126.3%
Cap/Sales(3y)9.73%
Cap/Sales(5y)8.62%
Profit Quality(3y)56.67%
Profit Quality(5y)142.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-70.95%
EPS 3Y105.79%
EPS 5Y11.75%
EPS Q2Q%-78.12%
EPS Next Y-82.75%
EPS Next 2Y-36.77%
EPS Next 3Y-9.23%
EPS Next 5Y-2.1%
Revenue 1Y (TTM)-28.33%
Revenue growth 3Y21.08%
Revenue growth 5Y7.7%
Sales Q2Q%-30.24%
Revenue Next Year-31.29%
Revenue Next 2Y-10%
Revenue Next 3Y-0.92%
Revenue Next 5Y0.63%
EBIT growth 1Y-91.3%
EBIT growth 3Y124.27%
EBIT growth 5Y16.83%
EBIT Next Year-62.22%
EBIT Next 3Y-2.09%
EBIT Next 5Y5.17%
FCF growth 1Y-95.41%
FCF growth 3Y-10.68%
FCF growth 5Y20.09%
OCF growth 1Y-70.35%
OCF growth 3Y14.64%
OCF growth 5Y8.45%