ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
USA - NASDAQ:ALGM - US01749D1054 - Common Stock
29.33 USD
+0.45 (+1.56%)
29.33 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. ALGM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ALGM has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years ALGM 4 years were profitable.
ALGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALGM (-4.94%) is worse than 66.07% of its industry peers.
ALGM has a worse Return On Equity (-7.43%) 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 (44.39%) which is comparable to the rest of the 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 | 44.39% |
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.
Compared to 5 years ago, ALGM has less shares outstanding
ALGM has a worse debt/assets ratio than last year.
2.2 Solvency
ALGM has an Altman-Z score of 7.61. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
ALGM has a better Altman-Z score (7.61) than 66.07% 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's Debt to FCF ratio of 6.43 is in line compared to the rest of the industry. ALGM outperforms 55.36% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that ALGM is not too dependend on debt financing.
ALGM has a worse Debt to Equity ratio (0.34) than 63.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 7.61 |
ROIC/WACCN/A
WACC11.6%
2.3 Liquidity
ALGM has a Current Ratio of 3.70. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALGM (3.70) is comparable to the rest of the industry.
ALGM has a Quick Ratio of 2.26. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
ALGM's Quick ratio of 2.26 is in line compared to the rest of the industry. ALGM outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.00%.
The earnings per share for ALGM have been decreasing by -32.49% on average. This is quite bad
Looking at the last year, ALGM shows a very negative growth in Revenue. The Revenue has decreased by -18.82% in the last year.
The Revenue has been growing slightly by 2.21% on average over the past years.
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
The Earnings Per Share is expected to grow by 83.54% on average over the next years. This is a very strong growth
ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.67% yearly.
EPS Next Y122.95%
EPS Next 2Y105.12%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue Next Year18.64%
Revenue Next 2Y18.63%
Revenue Next 3Y18.67%
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
The Price/Earnings ratio is 97.77, which means the current valuation is very expensive for ALGM.
The rest of the industry has a similar Price/Earnings ratio as ALGM.
The average S&P500 Price/Earnings ratio is at 27.31. ALGM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 29.05, ALGM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM indicates a somewhat cheap valuation: ALGM is cheaper than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, ALGM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.77 | ||
| Fwd PE | 29.05 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALGM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 111.72 | ||
| EV/EBITDA | 104.15 |
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 83.54% in the coming years.
PEG (NY)0.8
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 |
29.33
+0.45 (+1.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.12%
Inst Owner Change0.11%
Ins Owners0.62%
Ins Owner Change0.47%
Market Cap5.43B
Analysts83.33
Price Target38.59 (31.57%)
Short Float %8.27%
Short Ratio6.45
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)-1.52%
PT rev (3m)28.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.29%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.77 | ||
| Fwd PE | 29.05 | ||
| P/S | 7.13 | ||
| P/FCF | 111.72 | ||
| P/OCF | 60.75 | ||
| P/B | 5.88 | ||
| P/tB | 11.72 | ||
| EV/EBITDA | 104.15 |
EPS(TTM)0.3
EY1.02%
EPS(NY)1.01
Fwd EY3.44%
FCF(TTM)0.26
FCFY0.9%
OCF(TTM)0.48
OCFY1.65%
SpS4.12
BVpS4.99
TBVpS2.5
PEG (NY)0.8
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 | 7.61 |
F-Score2
WACC11.6%
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 Y122.95%
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 Year18.64%
Revenue Next 2Y18.63%
Revenue Next 3Y18.67%
Revenue Next 5YN/A
EBIT growth 1Y-108.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year205.77%
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%