ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
NASDAQ:ALGM - Nasdaq - US01749D1054 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ALGM. ALGM was compared to 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.
ALGM had positive earnings in 4 of the past 5 years.
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.
With a Return On Equity value of -7.00%, ALGM is not doing good in the industry: 64.55% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 1.37%, ALGM perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
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.
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.
Looking at the Gross Margin, with a value of 47.22%, ALGM is in line with its industry, 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
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
ALGM has an Altman-Z score of 8.02. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.02, ALGM is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
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.
ALGM has a Debt to FCF ratio (68.53) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.40 indicates that ALGM is not too dependend on debt financing.
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 | 8.02 |
ROIC/WACC0.12
WACC11.57%
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 Current ratio of 4.91. This is in the better half of the industry: ALGM outperforms 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.
ALGM has a Quick ratio of 3.00. This is comparable 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
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
ALGM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.64% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 140.42, ALGM can be considered very expensive at the moment.
ALGM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ALGM to the average of the S&P500 Index (28.04), we can say ALGM is valued expensively.
A Price/Forward Earnings ratio of 62.93 indicates a quite expensive valuation of ALGM.
The rest of the industry has a similar Price/Forward Earnings ratio as ALGM.
ALGM is valuated expensively when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.42 | ||
| Fwd PE | 62.93 |
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 | 1135.59 | ||
| EV/EBITDA | 68.17 |
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 79.64% in the coming years.
PEG (NY)1.14
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 |
33.7
+0.94 (+2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.02%
Inst Owner Change-0.06%
Ins Owners0.8%
Ins Owner Change0.51%
Market Cap6.23B
Analysts82.11
Price Target33.64 (-0.18%)
Short Float %10.5%
Short Ratio5.34
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)22.98%
PT rev (3m)13.15%
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 | 140.42 | ||
| Fwd PE | 62.93 | ||
| P/S | 8.06 | ||
| P/FCF | 1135.59 | ||
| P/OCF | 114.72 | ||
| P/B | 6.68 | ||
| P/tB | 13.28 | ||
| EV/EBITDA | 68.17 |
EPS(TTM)0.24
EY0.71%
EPS(NY)0.54
Fwd EY1.59%
FCF(TTM)0.03
FCFY0.09%
OCF(TTM)0.29
OCFY0.87%
SpS4.18
BVpS5.05
TBVpS2.54
PEG (NY)1.14
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 | 8.02 |
F-Score4
WACC11.57%
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%