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ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis

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

23.94  +0.98 (+4.27%)

After market: 23.94 0 (0%)

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. Both the profitability and the financial health of ALGM get a neutral evaluation. Nothing too spectacular is happening here. 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.
ALGM had positive earnings in each of the past 5 years.
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 worse Return On Assets (-4.53%) than 66.67% of its industry peers.
The Return On Equity of ALGM (-7.00%) is worse than 66.67% of its industry peers.
With a Return On Invested Capital value of 1.37%, ALGM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ALGM had an Average Return On Invested Capital over the past 3 years of 14.70%. This is above the industry average of 11.99%.
The 3 year average ROIC (14.70%) for ALGM is well above the current ROIC(1.37%). The reason for the recent decline needs to be investigated.
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

In the last couple of years the Profit Margin of ALGM has grown nicely.
ALGM's Operating Margin of 2.84% is in line compared to the rest of the industry. ALGM outperforms 51.85% of its industry peers.
ALGM's Operating Margin has improved in the last couple of years.
ALGM has a Gross Margin (47.22%) which is comparable to the rest of the industry.
ALGM's Gross Margin has improved in the last couple of years.
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.
Compared to 1 year ago, ALGM has more shares outstanding
Compared to 5 years ago, ALGM has more 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 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 6.07 indicates that ALGM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.07, ALGM is in the better half of the industry, outperforming 65.74% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 68.53, ALGM is in line with its industry, outperforming 47.22% of the companies in the same industry.
ALGM has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
ALGM's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. ALGM is outperformed by 67.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 68.53
Altman-Z 6.07
ROIC/WACC0.1
WACC14.02%
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

A Current Ratio of 4.91 indicates that ALGM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.91, ALGM is in the better half of the industry, outperforming 76.85% of the companies in the same industry.
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.
ALGM has a better Quick ratio (3.00) than 62.96% of its industry peers.
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%.
Measured over the past years, ALGM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.75% on average per year.
Looking at the last year, ALGM shows a very negative growth in Revenue. The Revenue has decreased by -28.33% in the last year.
The Revenue has been growing slightly by 7.70% on average over the past years.
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.
Based on estimates for the next years, ALGM will show a small growth in Revenue. The Revenue will grow by 0.63% on average per year.
EPS Next Y-80.74%
EPS Next 2Y-31.33%
EPS Next 3Y-5.71%
EPS Next 5Y-2.1%
Revenue Next Year-31.45%
Revenue Next 2Y-10.16%
Revenue Next 3Y-0.76%
Revenue Next 5Y0.63%

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 decreasing.
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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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 55.67, the valuation of ALGM can be described as expensive.
ALGM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.47. ALGM is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 37.33, the valuation of ALGM can be described as expensive.
ALGM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 92.74. ALGM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 55.67
Fwd PE 37.33
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALGM.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALGM.
Industry RankSector Rank
P/FCF 802.57
EV/EBITDA 50.27
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 -5.71% in the coming years.
PEG (NY)N/A
PEG (5Y)4.74
EPS Next 2Y-31.33%
EPS Next 3Y-5.71%

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0

5. Dividend

5.1 Amount

ALGM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (2/4/2025, 8:26:10 PM)

After market: 23.94 0 (0%)

23.94

+0.98 (+4.27%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)N/A N/A
Inst Owners49.89%
Inst Owner Change-0.36%
Ins Owners0.59%
Ins Owner Change-15.48%
Market Cap4.40B
Analysts81.11
Price Target29.01 (21.18%)
Short Float %8.79%
Short Ratio4.71
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)2.96%
PT rev (3m)-6.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.22%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-33.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.79%
Valuation
Industry RankSector Rank
PE 55.67
Fwd PE 37.33
P/S 5.7
P/FCF 802.57
P/OCF 81.08
P/B 4.72
P/tB 9.38
EV/EBITDA 50.27
EPS(TTM)0.43
EY1.8%
EPS(NY)0.64
Fwd EY2.68%
FCF(TTM)0.03
FCFY0.12%
OCF(TTM)0.3
OCFY1.23%
SpS4.2
BVpS5.07
TBVpS2.55
PEG (NY)N/A
PEG (5Y)4.74
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 6.07
F-Score4
WACC14.02%
ROIC/WACC0.1
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-80.74%
EPS Next 2Y-31.33%
EPS Next 3Y-5.71%
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-31.45%
Revenue Next 2Y-10.16%
Revenue Next 3Y-0.76%
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%