ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis

NASDAQ:ALGM • US01749D1054

38.12 USD
-0.92 (-2.36%)
At close: Feb 25, 2026
38.12 USD
0 (0%)
After Hours: 2/25/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

ALGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 114 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM has an excellent financial health rating, but there are some minor concerns on its profitability. ALGM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • ALGM had positive earnings in the past year.
  • 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 each 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 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • ALGM has a Return On Assets (-0.93%) which is in line with its industry peers.
  • ALGM has a Return On Equity (-1.37%) which is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 0.04%, ALGM is in line with its industry, outperforming 47.37% of the companies in the same industry.
Industry RankSector Rank
ROA -0.93%
ROE -1.37%
ROIC 0.04%
ROA(3y)6.9%
ROA(5y)7.3%
ROE(3y)8.35%
ROE(5y)8.88%
ROIC(3y)N/A
ROIC(5y)N/A
ALGM Yearly ROA, ROE, ROICALGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • ALGM has a Operating Margin (0.07%) which is in line with its industry peers.
  • ALGM's Gross Margin of 44.96% is in line compared to the rest of the industry. ALGM outperforms 52.63% of its industry peers.
  • ALGM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 0.07%
PM (TTM) N/A
GM 44.96%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.77%
GM growth 5Y1.99%
ALGM Yearly Profit, Operating, Gross MarginsALGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 0 20 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALGM is destroying value.
  • ALGM has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ALGM has been reduced compared to 5 years ago.
  • ALGM has a worse debt/assets ratio than last year.
ALGM Yearly Shares OutstandingALGM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B

2.2 Solvency

  • ALGM has an Altman-Z score of 10.29. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
  • ALGM's Altman-Z score of 10.29 is fine compared to the rest of the industry. ALGM outperforms 74.56% of its industry peers.
  • The Debt to FCF ratio of ALGM is 2.40, which is a good value as it means it would take ALGM, 2.40 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.40, ALGM is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
  • ALGM has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.30, ALGM is in line with its industry, outperforming 40.35% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 10.29
ROIC/WACC0
WACC10.73%
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 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • ALGM has a Current Ratio of 3.65. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 3.65, ALGM is doing good in the industry, outperforming 60.53% of the companies in the same industry.
  • ALGM has a Quick Ratio of 2.39. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
  • ALGM's Quick ratio of 2.39 is in line compared to the rest of the industry. ALGM outperforms 57.89% of its industry peers.
Industry RankSector Rank
Current Ratio 3.65
Quick Ratio 2.39
ALGM Yearly Current Assets VS Current LiabilitesALGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The earnings per share for ALGM have decreased by 0.00% in the last year.
  • ALGM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -32.49% yearly.
  • ALGM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.67%.
  • ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)0%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%114.29%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%

3.2 Future

  • The Earnings Per Share is expected to grow by 73.25% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 18.72% on average over the next years. This is quite good.
EPS Next Y125.71%
EPS Next 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue Next Year22.71%
Revenue Next 2Y20.52%
Revenue Next 3Y20.07%
Revenue Next 5Y18.72%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ALGM Yearly Revenue VS EstimatesALGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 88.65, the valuation of ALGM can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as ALGM.
  • Compared to an average S&P500 Price/Earnings ratio of 27.05, ALGM is valued quite expensively.
  • ALGM is valuated quite expensively with a Price/Forward Earnings ratio of 38.54.
  • ALGM's Price/Forward Earnings ratio is in line with the industry average.
  • ALGM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 28.03, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 88.65
Fwd PE 38.54
ALGM Price Earnings VS Forward Price EarningsALGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • ALGM's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, ALGM is valued a bit cheaper than 65.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 58.87
EV/EBITDA 111.02
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

  • ALGM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ALGM's earnings are expected to grow with 86.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y103.02%
EPS Next 3Y86.73%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • ALGM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (2/25/2026, 8:00:01 PM)

After market: 38.12 0 (0%)

38.12

-0.92 (-2.36%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-06
Inst Owners75.11%
Inst Owner Change-1.6%
Ins Owners0.65%
Ins Owner Change0.01%
Market Cap7.06B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts83.33
Price Target45.22 (18.63%)
Short Float %10%
Short Ratio4.9
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2.9%
Min EPS beat(2)2.66%
Max EPS beat(2)3.13%
EPS beat(4)4
Avg EPS beat(4)7.15%
Min EPS beat(4)2.66%
Max EPS beat(4)17.65%
EPS beat(8)8
Avg EPS beat(8)14.95%
EPS beat(12)12
Avg EPS beat(12)11.55%
EPS beat(16)16
Avg EPS beat(16)10.54%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.8%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.26%
Max Revenue beat(4)2.03%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)15.4%
PT rev (3m)14.9%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)1.34%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)3.42%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)0.84%
Valuation
Industry RankSector Rank
PE 88.65
Fwd PE 38.54
P/S 8.41
P/FCF 58.87
P/OCF 47.82
P/B 7.34
P/tB 13.73
EV/EBITDA 111.02
EPS(TTM)0.43
EY1.13%
EPS(NY)0.99
Fwd EY2.6%
FCF(TTM)0.65
FCFY1.7%
OCF(TTM)0.8
OCFY2.09%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.71
PEG (5Y)N/A
Graham Number7.09
Profitability
Industry RankSector Rank
ROA -0.93%
ROE -1.37%
ROCE 0.05%
ROIC 0.04%
ROICexc 0.04%
ROICexgc 0.07%
OM 0.07%
PM (TTM) N/A
GM 44.96%
FCFM 14.29%
ROA(3y)6.9%
ROA(5y)7.3%
ROE(3y)8.35%
ROE(5y)8.88%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.77%
GM growth 5Y1.99%
F-Score5
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Debt/EBITDA 4.31
Cap/Depr 42.18%
Cap/Sales 3.3%
Interest Coverage 250
Cash Conversion 222.61%
Profit Quality N/A
Current Ratio 3.65
Quick Ratio 2.39
Altman-Z 10.29
F-Score5
WACC10.73%
ROIC/WACC0
Cap/Depr(3y)131.89%
Cap/Depr(5y)124.81%
Cap/Sales(3y)8.59%
Cap/Sales(5y)8.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%114.29%
EPS Next Y125.71%
EPS Next 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%
Revenue Next Year22.71%
Revenue Next 2Y20.52%
Revenue Next 3Y20.07%
Revenue Next 5Y18.72%
EBIT growth 1Y-97.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year194.32%
EBIT Next 3Y86.43%
EBIT Next 5Y71.82%
FCF growth 1Y58.38%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-31.76%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%

ALLEGRO MICROSYSTEMS INC / ALGM FAQ

What is the ChartMill fundamental rating of ALLEGRO MICROSYSTEMS INC (ALGM) stock?

ChartMill assigns a fundamental rating of 5 / 10 to ALGM.


What is the valuation status for ALGM stock?

ChartMill assigns a valuation rating of 4 / 10 to ALLEGRO MICROSYSTEMS INC (ALGM). This can be considered as Fairly Valued.


What is the profitability of ALGM stock?

ALLEGRO MICROSYSTEMS INC (ALGM) has a profitability rating of 4 / 10.


What is the valuation of ALLEGRO MICROSYSTEMS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALLEGRO MICROSYSTEMS INC (ALGM) is 88.65 and the Price/Book (PB) ratio is 7.34.


How financially healthy is ALLEGRO MICROSYSTEMS INC?

The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 7 / 10.