ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
NASDAQ:ALGM - Nasdaq - US01749D1054 - Common Stock - Currency: USD
Taking everything into account, ALGM scores 4 out of 10 in our fundamental rating. ALGM was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM has only an average score on both its financial health and profitability. ALGM does not seem to be growing, but still is valued expensively.
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
ALGM has a worse Return On Assets (-4.53%) than 68.18% of its industry peers.
Looking at the Return On Equity, with a value of -7.00%, ALGM is doing worse than 64.55% of the companies in the same industry.
ALGM has a Return On Invested Capital (1.37%) which is in line with 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 10.68%.
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
In the last couple of years the Profit Margin of ALGM has grown nicely.
ALGM has a Operating Margin of 2.84%. This is comparable 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.
With a Gross Margin value of 47.22%, ALGM perfoms like the industry average, outperforming 52.73% of the companies in the same 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
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.
2.2 Solvency
An Altman-Z score of 8.37 indicates that ALGM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALGM (8.37) is better than 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 68.53 | ||
| Altman-Z | 8.37 |
ROIC/WACC0.12
WACC11.58%
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.
A Quick Ratio of 3.00 indicates that ALGM has no problem at all paying its short term obligations.
ALGM's Quick ratio of 3.00 is in line compared to the rest of the industry. ALGM outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.91 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
ALGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.35%.
ALGM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -32.49% yearly.
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 79.64% 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 17.33% on average per year.
EPS Next Y123.13%
EPS Next 2Y101.9%
EPS Next 3Y79.64%
EPS Next 5YN/A
Revenue Next Year17.99%
Revenue Next 2Y18.23%
Revenue Next 3Y17.33%
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
A Price/Earnings ratio of 141.71 indicates a quite expensive valuation of ALGM.
ALGM's Price/Earnings ratio is a bit more expensive when compared to the industry. ALGM is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, ALGM is valued quite expensively.
The Price/Forward Earnings ratio is 63.51, which means the current valuation is very expensive for ALGM.
ALGM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ALGM to the average of the S&P500 Index (37.11), we can say ALGM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.71 | ||
| Fwd PE | 63.51 |
4.2 Price Multiples
ALGM's Enterprise Value to EBITDA is on the same level as the industry average.
ALGM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1146.04 | ||
| EV/EBITDA | 71.4 |
4.3 Compensation for Growth
ALGM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALGM's earnings are expected to grow with 79.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y101.9%
EPS Next 3Y79.64%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.01
-0.36 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.02%
Inst Owner Change-0.08%
Ins Owners0.8%
Ins Owner Change0.51%
Market Cap6.29B
Analysts82.11
Price Target33.64 (-1.09%)
Short Float %9.82%
Short Ratio5.76
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)12.44%
PT rev (3m)14.88%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.71 | ||
| Fwd PE | 63.51 | ||
| P/S | 8.14 | ||
| P/FCF | 1146.04 | ||
| P/OCF | 115.78 | ||
| P/B | 6.74 | ||
| P/tB | 13.4 | ||
| EV/EBITDA | 71.4 |
EPS(TTM)0.24
EY0.71%
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)1.15
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 | 8.37 |
F-Score4
WACC11.58%
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 Y123.13%
EPS Next 2Y101.9%
EPS Next 3Y79.64%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-19.85%
Revenue Next Year17.99%
Revenue Next 2Y18.23%
Revenue Next 3Y17.33%
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%