ALLEGRO MICROSYSTEMS INC (ALGM)
US01749D1054 - Common Stock
Overall ALGM gets a fundamental rating of 5 out of 10. We evaluated ALGM against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. While ALGM has a great profitability rating, there are some minor concerns on its financial health. ALGM is valued correctly, but it does not seem to be growing.
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 each of the past 5 years.
In the past 5 years ALGM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 9.98%, ALGM is doing good in the industry, outperforming 76.15% of the companies in the same industry.
ALGM has a Return On Equity of 13.51%. This is in the better half of the industry: ALGM outperforms 71.56% of its industry peers.
With an excellent Return On Invested Capital value of 12.88%, ALGM belongs to the best of the industry, outperforming 82.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALGM is above the industry average of 10.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.98% | ||
| ROE | 13.51% | ||
| ROIC | 12.88% |
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 has a better Profit Margin (14.56%) than 70.64% of its industry peers.
In the last couple of years the Profit Margin of ALGM has grown nicely.
The Operating Margin of ALGM (20.74%) is better than 76.15% of its industry peers.
In the last couple of years the Operating Margin of ALGM has grown nicely.
Looking at the Gross Margin, with a value of 54.75%, ALGM is in the better half of the industry, outperforming 72.48% of the companies in the same industry.
In the last couple of years the Gross Margin of ALGM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.74% | ||
| PM (TTM) | 14.56% | ||
| GM | 54.75% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALGM is creating some value.
The number of shares outstanding for ALGM has been increased compared to 1 year ago.
ALGM has more 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 9.00 indicates that ALGM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.00, ALGM is in the better half of the industry, outperforming 77.06% of the companies in the same industry.
ALGM has a debt to FCF ratio of 4.45. This is a neutral value as ALGM would need 4.45 years to pay back of all of its debts.
ALGM has a Debt to FCF ratio of 4.45. This is comparable to the rest of the industry: ALGM outperforms 53.21% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that ALGM is not too dependend on debt financing.
ALGM has a Debt to Equity ratio (0.22) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 9 |
ROIC/WACC1.07
WACC12.01%
2.3 Liquidity
ALGM has a Current Ratio of 4.85. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.85, ALGM is in the better half of the industry, outperforming 75.23% of the companies in the same industry.
ALGM has a Quick Ratio of 3.48. 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 3.48, ALGM is in the better half of the industry, outperforming 65.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.09% over the past year.
Measured over the past years, ALGM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.75% on average per year.
The Revenue has been growing slightly by 7.77% in the past year.
ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.70% yearly.
EPS 1Y (TTM)7.09%
EPS 3Y105.79%
EPS 5Y11.75%
EPS Q2Q%-32.43%
Revenue 1Y (TTM)7.77%
Revenue growth 3Y21.08%
Revenue growth 5Y7.7%
Sales Q2Q%-10.71%
3.2 Future
Based on estimates for the next years, ALGM will show a small growth in Earnings Per Share. The EPS will grow by 4.66% on average per year.
ALGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y-65.6%
EPS Next 2Y-7.92%
EPS Next 3Y1.03%
EPS Next 5Y4.66%
Revenue Next Year-23.83%
Revenue Next 2Y-0.14%
Revenue Next 3Y3.01%
Revenue Next 5Y4.48%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.11 indicates a rather expensive valuation of ALGM.
86.24% of the companies in the same industry are more expensive than ALGM, based on the Price/Earnings ratio.
ALGM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
The Price/Forward Earnings ratio is 52.65, which means the current valuation is very expensive for ALGM.
Based on the Price/Forward Earnings ratio, ALGM is valued a bit more expensive than 61.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALGM to the average of the S&P500 Index (20.35), we can say ALGM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 52.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGM is valued cheaply inside the industry as 82.57% of the companies are valued more expensively.
ALGM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.82 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
ALGM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y-7.92%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
No dividends for ALGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALLEGRO MICROSYSTEMS INC
NASDAQ:ALGM (7/26/2024, 9:03:09 AM)
24.63
+0.32 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 52.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.98% | ||
| ROE | 13.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.74% | ||
| PM (TTM) | 14.56% | ||
| GM | 54.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.85 | ||
| Quick Ratio | 3.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.09%
EPS 3Y105.79%
EPS 5Y
EPS Q2Q%
EPS Next Y-65.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.77%
Revenue growth 3Y21.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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