ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation

NASDAQ:ALGM • US01749D1054

34.07 USD
-0.65 (-1.87%)
At close: Mar 4, 2026
34.07 USD
0 (0%)
After Hours: 3/4/2026, 8:08:10 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ALGM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, ALGM scores 5 out of 10 in our fundamental rating. ALGM was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ALGM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

1. ALGM Profitability Analysis

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.
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 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • The Return On Assets of ALGM (-0.93%) is comparable to the rest of the industry.
  • 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 RankSector 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
ALGM Yearly ROA, ROE, ROICALGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • ALGM has a Operating Margin (0.07%) which is in line with its industry peers.
  • ALGM has a Gross Margin of 44.96%. This is comparable to the rest of the industry: ALGM outperforms 53.04% of its industry peers.
  • ALGM's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
ALGM Yearly Profit, Operating, Gross MarginsALGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 0 20 40

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7

2. ALGM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALGM is destroying value.
  • ALGM has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ALGM has been reduced compared to 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 2025 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 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 9.09 indicates that ALGM is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 9.09, ALGM is doing good in the industry, outperforming 70.43% 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.
  • Looking at the Debt to FCF ratio, with a value of 2.40, ALGM is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
  • A Debt/Equity ratio of 0.30 indicates that ALGM is not too dependend on debt financing.
  • The Debt to Equity ratio of ALGM (0.30) is worse than 60.00% of its industry peers.
  • Although ALGM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 9.09
ROIC/WACC0
WACC11.11%
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 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • ALGM has a Current Ratio of 3.65. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
  • ALGM's Current ratio of 3.65 is in line compared to the rest of the industry. ALGM outperforms 60.00% of its industry peers.
  • ALGM has a Quick Ratio of 2.39. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
  • ALGM has a Quick ratio (2.39) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 3.65
Quick Ratio 2.39
ALGM Yearly Current Assets VS Current LiabilitesALGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALGM Growth Analysis

3.1 Past

  • The earnings per share for ALGM have decreased by 0.00% 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.
  • The Revenue has grown by 8.67% in the past year. This is quite good.
  • Measured over the past years, ALGM shows a small growth in Revenue. The Revenue has been growing by 2.21% on average per year.
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

  • The Earnings Per Share is expected to grow by 73.25% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, ALGM will show a quite strong growth in Revenue. The Revenue will grow by 18.72% on average per year.
EPS Next Y125.71%
EPS Next 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue Next Year22.99%
Revenue Next 2Y19.95%
Revenue Next 3Y19.5%
Revenue Next 5Y18.72%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
ALGM Yearly Revenue VS EstimatesALGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

4

4. ALGM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 79.23, which means the current valuation is very expensive for ALGM.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALGM is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.03, ALGM is valued quite expensively.
  • The Price/Forward Earnings ratio is 34.44, which means the current valuation is very expensive for ALGM.
  • ALGM's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of ALGM to the average of the S&P500 Index (25.11), we can say ALGM is valued slightly more expensively.
Industry RankSector Rank
PE 79.23
Fwd PE 34.44
ALGM Price Earnings VS Forward Price EarningsALGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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.
  • 66.96% of the companies in the same industry are more expensive than ALGM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 52.62
EV/EBITDA 97.14
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

  • ALGM's 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 86.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y103.02%
EPS Next 3Y86.73%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ALGM Dividend Analysis

5.1 Amount

  • ALGM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ALGM Fundamentals: All Metrics, Ratios and Statistics

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (3/4/2026, 8:08:10 PM)

After market: 34.07 0 (0%)

34.07

-0.65 (-1.87%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-06
Inst Owners75.11%
Inst Owner Change-1.59%
Ins Owners0.65%
Ins Owner Change0.01%
Market Cap6.31B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts83.33
Price Target46.75 (37.22%)
Short Float %8.87%
Short Ratio4.1
Dividend
Industry RankSector 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)19.31%
PT rev (3m)18.79%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)1.34%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)3.4%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)1.07%
Valuation
Industry RankSector Rank
PE 79.23
Fwd PE 34.44
P/S 7.52
P/FCF 52.62
P/OCF 42.74
P/B 6.56
P/tB 12.27
EV/EBITDA 97.14
EPS(TTM)0.43
EY1.26%
EPS(NY)0.99
Fwd EY2.9%
FCF(TTM)0.65
FCFY1.9%
OCF(TTM)0.8
OCFY2.34%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.63
PEG (5Y)N/A
Graham Number7.09
Profitability
Industry RankSector 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 RankSector 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 9.09
F-Score5
WACC11.11%
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 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%
Revenue Next Year22.99%
Revenue Next 2Y19.95%
Revenue Next 3Y19.5%
Revenue Next 5Y18.72%
EBIT growth 1Y-97.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year177.32%
EBIT Next 3Y89.56%
EBIT Next 5Y71.82%
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 79.23 and the Price/Book (PB) ratio is 6.56.


How financially healthy is ALLEGRO MICROSYSTEMS INC?

The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 7 / 10.