ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
USA - NASDAQ:ALGM - US01749D1054 - Common Stock
26.61 USD
-0.99 (-3.59%)
26.6 USD
-0.01 (-0.04%)
Overall ALGM gets a fundamental rating of 4 out of 10. We evaluated ALGM against 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALGM was profitable.
ALGM had a positive operating cash flow in the past year.
ALGM had positive earnings in 4 of the past 5 years.
ALGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -2.05%, ALGM is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
ALGM has a Return On Equity (-3.00%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.05% | ||
| ROE | -3% | ||
| 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
With a Gross Margin value of 44.61%, ALGM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ALGM's Gross Margin has improved in the last couple of years.
ALGM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.61% |
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.
ALGM has less shares outstanding than it did 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
ALGM has an Altman-Z score of 7.75. 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 7.75, ALGM is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
ALGM has a debt to FCF ratio of 5.05. This is a neutral value as ALGM would need 5.05 years to pay back of all of its debts.
ALGM has a Debt to FCF ratio (5.05) which is in line with 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.
With a Debt to Equity ratio value of 0.30, ALGM perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 7.75 |
ROIC/WACCN/A
WACC10.8%
2.3 Liquidity
A Current Ratio of 3.89 indicates that ALGM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.89, ALGM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ALGM has a Quick Ratio of 2.48. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ALGM (2.48) is better than 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.53%.
The earnings per share for ALGM have been decreasing by -32.49% on average. This is quite bad
ALGM shows a decrease in Revenue. In the last year, the revenue decreased by -7.23%.
The Revenue has been growing slightly by 2.21% on average over the past years.
EPS 1Y (TTM)-48.53%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%62.5%
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%14.36%
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 87.39% on average per year.
The Revenue is expected to grow by 19.38% on average over the next years. This is quite good.
EPS Next Y121.25%
EPS Next 2Y102.66%
EPS Next 3Y87.39%
EPS Next 5YN/A
Revenue Next Year21.69%
Revenue Next 2Y18.29%
Revenue Next 3Y19.38%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 76.03, which means the current valuation is very expensive for ALGM.
The rest of the industry has a similar Price/Earnings ratio as ALGM.
When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (26.35), we can say ALGM is valued expensively.
A Price/Forward Earnings ratio of 26.99 indicates a quite expensive valuation of ALGM.
ALGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALGM is cheaper than 64.29% of the companies in the same industry.
ALGM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.03 | ||
| Fwd PE | 26.99 |
4.2 Price Multiples
ALGM's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALGM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.51 | ||
| EV/EBITDA | 94.47 |
4.3 Compensation for Growth
ALGM's 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 87.39% in the coming years.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y102.66%
EPS Next 3Y87.39%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.61
-0.99 (-3.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.12%
Inst Owner Change-1.22%
Ins Owners0.62%
Ins Owner Change0.47%
Market Cap4.92B
Revenue(TTM)788.39M
Net Income(TTM)-28.37M
Analysts83.33
Price Target37.49 (40.89%)
Short Float %6.95%
Short Ratio4.95
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)4.14%
Min EPS beat(2)3.13%
Max EPS beat(2)5.14%
EPS beat(4)4
Avg EPS beat(4)7.84%
Min EPS beat(4)3.13%
Max EPS beat(4)17.65%
EPS beat(8)8
Avg EPS beat(8)15.73%
EPS beat(12)12
Avg EPS beat(12)11.98%
EPS beat(16)16
Avg EPS beat(16)10.58%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)2.03%
Revenue beat(8)3
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)-0.1%
PT rev (1m)-2.86%
PT rev (3m)-2.65%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)3.93%
Revenue NQ rev (3m)3.66%
Revenue NY rev (1m)2.57%
Revenue NY rev (3m)3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.03 | ||
| Fwd PE | 26.99 | ||
| P/S | 6.25 | ||
| P/FCF | 86.51 | ||
| P/OCF | 52.3 | ||
| P/B | 5.22 | ||
| P/tB | 10.05 | ||
| EV/EBITDA | 94.47 |
EPS(TTM)0.35
EY1.32%
EPS(NY)0.99
Fwd EY3.7%
FCF(TTM)0.31
FCFY1.16%
OCF(TTM)0.51
OCFY1.91%
SpS4.26
BVpS5.1
TBVpS2.65
PEG (NY)0.63
PEG (5Y)N/A
Graham Number6.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.05% | ||
| ROE | -3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.61% | ||
| FCFM | 7.22% |
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-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 5.12 | ||
| Cap/Depr | 57.39% | ||
| Cap/Sales | 4.72% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 168.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 7.75 |
F-Score3
WACC10.8%
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)-48.53%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%62.5%
EPS Next Y121.25%
EPS Next 2Y102.66%
EPS Next 3Y87.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.23%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%14.36%
Revenue Next Year21.69%
Revenue Next 2Y18.29%
Revenue Next 3Y19.38%
Revenue Next 5YN/A
EBIT growth 1Y-113.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.77%
EBIT Next 3Y83.95%
EBIT Next 5YN/A
FCF growth 1Y-26.17%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-52.4%
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 4 / 10 to ALGM.
Can you provide the valuation status for ALLEGRO MICROSYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to ALLEGRO MICROSYSTEMS INC (ALGM). This can be considered as Fairly Valued.
How profitable is ALLEGRO MICROSYSTEMS INC (ALGM) stock?
ALLEGRO MICROSYSTEMS INC (ALGM) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ALLEGRO MICROSYSTEMS INC (ALGM) stock?
The Price/Earnings (PE) ratio for ALLEGRO MICROSYSTEMS INC (ALGM) is 76.03 and the Price/Book (PB) ratio is 5.22.
What is the expected EPS growth for ALLEGRO MICROSYSTEMS INC (ALGM) stock?
The Earnings per Share (EPS) of ALLEGRO MICROSYSTEMS INC (ALGM) is expected to grow by 121.25% in the next year.