ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
USA - NASDAQ:ALGM - US01749D1054 - Common Stock
31.45 USD
-0.5 (-1.56%)
31.45 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ALGM. ALGM was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While ALGM seems to be doing ok healthwise, there are quite some concerns on its profitability. ALGM is valied quite expensively at the moment, while it does show a decent growth rate.
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 4 of the past 5 years.
In the past 5 years ALGM always reported a positive cash flow from operatings.
1.2 Ratios
ALGM has a Return On Assets of -4.94%. This is in the lower half of the industry: ALGM underperforms 66.07% of its industry peers.
The Return On Equity of ALGM (-7.43%) is worse than 63.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.94% | ||
| ROE | -7.43% | ||
| 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 has a Gross Margin of 44.39%. This is comparable to the rest of the industry: ALGM outperforms 50.00% 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 | 44.39% |
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.
The number of shares outstanding for ALGM has been reduced compared to 1 year ago.
ALGM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALGM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.34 indicates that ALGM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALGM (8.34) is better than 66.96% of its industry peers.
The Debt to FCF ratio of ALGM is 6.43, which is on the high side as it means it would take ALGM, 6.43 years of fcf income to pay off all of its debts.
ALGM has a Debt to FCF ratio (6.43) which is in line with its industry peers.
ALGM has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.34, ALGM is doing worse than 65.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 8.34 |
ROIC/WACCN/A
WACC11.46%
2.3 Liquidity
A Current Ratio of 3.70 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a Current ratio (3.70) which is comparable to the rest of the industry.
A Quick Ratio of 2.26 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a Quick ratio (2.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The earnings per share for ALGM have decreased strongly by -70.00% in the last year.
Measured over the past years, ALGM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -32.49% on average per year.
ALGM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.82%.
ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-70%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)-18.82%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%21.86%
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 83.54% on average per year.
The Revenue is expected to grow by 18.96% on average over the next years. This is quite good.
EPS Next Y122.77%
EPS Next 2Y105.12%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue Next Year19.18%
Revenue Next 2Y18.75%
Revenue Next 3Y18.96%
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.
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. Valuation
4.1 Price/Earnings Ratio
ALGM is valuated quite expensively with a Price/Earnings ratio of 104.83.
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 27.38.
The Price/Forward Earnings ratio is 31.14, which means the current valuation is very expensive for ALGM.
The rest of the industry has a similar Price/Forward Earnings ratio as ALGM.
The average S&P500 Price/Forward Earnings ratio is at 22.86. ALGM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.83 | ||
| Fwd PE | 31.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGM is on the same level as its industry peers.
ALGM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.8 | ||
| EV/EBITDA | 114.85 |
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.
ALGM's earnings are expected to grow with 83.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y105.12%
EPS Next 3Y83.54%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.45
-0.5 (-1.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.92%
Inst Owner Change-6.32%
Ins Owners0.68%
Ins Owner Change0.47%
Market Cap5.82B
Analysts83.33
Price Target38.59 (22.7%)
Short Float %7.16%
Short Ratio5.02
Dividend
| Industry Rank | Sector 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)11.39%
Min EPS beat(2)5.14%
Max EPS beat(2)17.65%
EPS beat(4)4
Avg EPS beat(4)13.42%
Min EPS beat(4)5.14%
Max EPS beat(4)25.49%
EPS beat(8)8
Avg EPS beat(8)16.08%
EPS beat(12)12
Avg EPS beat(12)13.14%
EPS beat(16)16
Avg EPS beat(16)11.04%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)0.84%
Max Revenue beat(2)2.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)2.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.58%
Revenue beat(12)4
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0.22%
PT rev (3m)41.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.61%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.83 | ||
| Fwd PE | 31.14 | ||
| P/S | 7.64 | ||
| P/FCF | 119.8 | ||
| P/OCF | 65.14 | ||
| P/B | 6.31 | ||
| P/tB | 12.57 | ||
| EV/EBITDA | 114.85 |
EPS(TTM)0.3
EY0.95%
EPS(NY)1.01
Fwd EY3.21%
FCF(TTM)0.26
FCFY0.83%
OCF(TTM)0.48
OCFY1.54%
SpS4.12
BVpS4.99
TBVpS2.5
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.94% | ||
| ROE | -7.43% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.39% | ||
| FCFM | 6.38% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score2
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.43 | ||
| Debt/EBITDA | 5.86 | ||
| Cap/Depr | 63.43% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 168.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 8.34 |
F-Score2
WACC11.46%
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)-70%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y122.77%
EPS Next 2Y105.12%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.82%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%21.86%
Revenue Next Year19.18%
Revenue Next 2Y18.75%
Revenue Next 3Y18.96%
Revenue Next 5YN/A
EBIT growth 1Y-108.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year202.96%
EBIT Next 3Y80.06%
EBIT Next 5YN/A
FCF growth 1Y-49.4%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-56.7%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%