ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
NASDAQ:ALGM - Nasdaq - US01749D1054 - Common Stock - Currency: USD
Overall ALGM gets a fundamental rating of 4 out of 10. We evaluated ALGM against 110 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ALGM was profitable.
ALGM had a positive operating cash flow in the past year.
Of the past 5 years ALGM 4 years were profitable.
ALGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.53%, ALGM is doing worse than 68.18% of the companies in the same industry.
ALGM's Return On Equity of -7.00% is on the low side compared to the rest of the industry. ALGM is outperformed by 64.55% of its industry peers.
ALGM has a Return On Invested Capital (1.37%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ALGM is above the industry average of 10.57%.
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 Rank | Sector 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%
1.3 Margins
ALGM's Profit Margin has improved in the last couple of years.
ALGM's Operating Margin of 2.84% is in line compared to the rest of the industry. ALGM outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of ALGM has grown nicely.
The Gross Margin of ALGM (47.22%) is comparable to the rest of the industry.
ALGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALGM is still creating some value.
There is no outstanding debt for ALGM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 7.40 indicates that ALGM is not in any danger for bankruptcy at the moment.
ALGM's Altman-Z score of 7.40 is fine compared to the rest of the industry. ALGM outperforms 70.91% of its industry peers.
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 41.82% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that ALGM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, ALGM is doing worse than 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 68.53 | ||
| Altman-Z | 7.4 |
ROIC/WACC0.12
WACC11.16%
2.3 Liquidity
A Current Ratio of 4.91 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a better Current ratio (4.91) than 70.91% of its industry peers.
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.
Looking at the Quick ratio, with a value of 3.00, ALGM is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.91 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
The earnings per share for ALGM have decreased strongly by -82.35% 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.
EPS 1Y (TTM)-82.35%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%-76%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-19.85%
3.2 Future
The Earnings Per Share is expected to grow by 77.66% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.59% on average over the next years. This is quite good.
EPS Next Y119.07%
EPS Next 2Y99.49%
EPS Next 3Y77.66%
EPS Next 5YN/A
Revenue Next Year17.85%
Revenue Next 2Y17.88%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS 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 119.38, which means the current valuation is very expensive for ALGM.
ALGM's Price/Earnings ratio is a bit more expensive when compared to the industry. ALGM is more expensive than 60.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (26.31), we can say ALGM is valued expensively.
With a Price/Forward Earnings ratio of 54.49, ALGM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ALGM is valued a bit more expensive than 61.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. ALGM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.38 | ||
| Fwd PE | 54.49 |
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 | 965.27 | ||
| EV/EBITDA | 62.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ALGM's earnings are expected to grow with 77.66% in the coming years.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y99.49%
EPS Next 3Y77.66%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.65
-1.24 (-4.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.99%
Inst Owner Change9.45%
Ins Owners0.71%
Ins Owner Change0.52%
Market Cap5.30B
Analysts82.35
Price Target27.35 (-4.54%)
Short Float %12.23%
Short Ratio4.68
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)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)-6.59%
PT rev (3m)-5.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.38 | ||
| Fwd PE | 54.49 | ||
| P/S | 6.86 | ||
| P/FCF | 965.27 | ||
| P/OCF | 97.51 | ||
| P/B | 5.68 | ||
| P/tB | 11.29 | ||
| EV/EBITDA | 62.42 |
EPS(TTM)0.24
EY0.84%
EPS(NY)0.53
Fwd EY1.84%
FCF(TTM)0.03
FCFY0.1%
OCF(TTM)0.29
OCFY1.03%
SpS4.18
BVpS5.05
TBVpS2.54
PEG (NY)1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.4 |
F-Score4
WACC11.16%
ROIC/WACC0.12
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)-82.35%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%-76%
EPS Next Y119.07%
EPS Next 2Y99.49%
EPS Next 3Y77.66%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-19.85%
Revenue Next Year17.85%
Revenue Next 2Y17.88%
Revenue Next 3Y16.59%
Revenue Next 5YN/A
EBIT growth 1Y-91.3%
EBIT growth 3Y124.27%
EBIT growth 5Y16.83%
EBIT Next Year-63.04%
EBIT Next 3Y-0.87%
EBIT Next 5Y0.18%
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%