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ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis

NASDAQ:ALGM - Nasdaq - US01749D1054 - Common Stock - Currency: USD

34.19  +0.01 (+0.03%)

After market: 34.49 +0.3 (+0.88%)

Fundamental Rating

4

ALGM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM has only an average score on both its financial health and profitability. ALGM is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

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.
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 50M 100M 150M 200M

1.2 Ratios

ALGM has a Return On Assets of -4.53%. This is in the lower half of the industry: ALGM underperforms 68.18% of its industry peers.
ALGM has a Return On Equity of -7.00%. This is in the lower half of the industry: ALGM underperforms 64.55% of its industry peers.
ALGM has a Return On Invested Capital of 1.37%. This is comparable to the rest of the industry: ALGM outperforms 49.09% of its industry peers.
ALGM had an Average Return On Invested Capital over the past 3 years of 14.70%. This is above the industry average of 10.58%.
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 RankSector 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%
ALGM Yearly ROA, ROE, ROICALGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

In the last couple of years the Profit Margin of ALGM has grown nicely.
Looking at the Operating Margin, with a value of 2.84%, ALGM is in line with its industry, outperforming 50.00% of the companies in the same industry.
ALGM's Operating Margin has improved in the last couple of years.
ALGM's Gross Margin of 47.22% is in line compared to the rest of the industry. ALGM outperforms 52.73% of its industry peers.
ALGM's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
ALGM Yearly Profit, Operating, Gross MarginsALGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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5

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.
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.
ALGM Yearly Shares OutstandingALGM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B

2.2 Solvency

ALGM has an Altman-Z score of 8.33. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
ALGM's Altman-Z score of 8.33 is fine compared to the rest of the industry. ALGM outperforms 71.82% 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.
The Debt to FCF ratio of ALGM (68.53) is comparable to the rest of the industry.
ALGM has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ALGM (0.40) is worse than 67.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 68.53
Altman-Z 8.33
ROIC/WACC0.14
WACC10.11%
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 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 4.91 indicates that ALGM has no problem at all paying its short term obligations.
The Current ratio of ALGM (4.91) is better than 70.91% of its industry peers.
A Quick Ratio of 3.00 indicates that ALGM has no problem at all paying its short term obligations.
The Quick ratio of ALGM (3.00) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 4.91
Quick Ratio 3
ALGM Yearly Current Assets VS Current LiabilitesALGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M

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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 79.88% 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 17.39% on average per year.
EPS Next Y123.13%
EPS Next 2Y101.9%
EPS Next 3Y79.88%
EPS Next 5YN/A
Revenue Next Year17.25%
Revenue Next 2Y18.11%
Revenue Next 3Y17.39%
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.
ALGM Yearly Revenue VS EstimatesALGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 142.46, the valuation of ALGM can be described as expensive.
Based on the Price/Earnings ratio, ALGM is valued a bit more expensive than 60.91% of the companies in the same industry.
ALGM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 63.85 indicates a quite expensive valuation of ALGM.
61.82% of the companies in the same industry are cheaper than ALGM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, ALGM is valued quite expensively.
Industry RankSector Rank
PE 142.46
Fwd PE 63.85
ALGM Price Earnings VS Forward Price EarningsALGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

ALGM's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALGM.
Industry RankSector Rank
P/FCF 1151.92
EV/EBITDA 71.01
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

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 79.88% in the coming years.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y101.9%
EPS Next 3Y79.88%

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0

5. Dividend

5.1 Amount

No dividends for ALGM!.
Industry RankSector Rank
Dividend Yield N/A

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ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (6/30/2025, 8:00:00 PM)

After market: 34.49 +0.3 (+0.88%)

34.19

+0.01 (+0.03%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)07-24 2025-07-24/bmo
Inst Owners86.02%
Inst Owner Change9.45%
Ins Owners0.8%
Ins Owner Change0.51%
Market Cap6.32B
Analysts82.35
Price Target29.92 (-12.49%)
Short Float %10.64%
Short Ratio4.36
Dividend
Industry RankSector 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)6.56%
PT rev (3m)1.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 142.46
Fwd PE 63.85
P/S 8.18
P/FCF 1151.92
P/OCF 116.37
P/B 6.78
P/tB 13.47
EV/EBITDA 71.01
EPS(TTM)0.24
EY0.7%
EPS(NY)0.54
Fwd EY1.57%
FCF(TTM)0.03
FCFY0.09%
OCF(TTM)0.29
OCFY0.86%
SpS4.18
BVpS5.05
TBVpS2.54
PEG (NY)1.16
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 8.33
F-Score4
WACC10.11%
ROIC/WACC0.14
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 Y123.13%
EPS Next 2Y101.9%
EPS Next 3Y79.88%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-19.85%
Revenue Next Year17.25%
Revenue Next 2Y18.11%
Revenue Next 3Y17.39%
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 5Y0.68%
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%