ALLEGRO MICROSYSTEMS INC (ALGM)
US01749D1054 - Common Stock
Taking everything into account, ALGM scores 6 out of 10 in our fundamental rating. ALGM was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. ALGM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALGM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make ALGM a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
ALGM had positive earnings in the past year.
In the past year ALGM had a positive cash flow from operations.
ALGM had positive earnings in each of the past 5 years.
ALGM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALGM (14.17%) is better than 83.96% of its industry peers.
The Return On Equity of ALGM (19.56%) is better than 83.02% of its industry peers.
ALGM's Return On Invested Capital of 14.62% is amongst the best of the industry. ALGM outperforms 84.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALGM is in line with the industry average of 10.84%.
The last Return On Invested Capital (14.62%) for ALGM is above the 3 year average (11.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.17% | ||
| ROE | 19.56% | ||
| ROIC | 14.62% |
ROA(3y)10.55%
ROA(5y)9.49%
ROE(3y)12.91%
ROE(5y)11.79%
ROIC(3y)11.69%
ROIC(5y)10.98%
1.3 Margins
ALGM has a Profit Margin of 20.58%. This is in the better half of the industry: ALGM outperforms 75.47% of its industry peers.
In the last couple of years the Profit Margin of ALGM has grown nicely.
The Operating Margin of ALGM (22.57%) is better than 76.42% of its industry peers.
ALGM's Operating Margin has improved in the last couple of years.
ALGM's Gross Margin of 56.06% is fine compared to the rest of the industry. ALGM outperforms 72.64% of its industry peers.
In the last couple of years the Gross Margin of ALGM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.57% | ||
| PM (TTM) | 20.58% | ||
| GM | 56.06% |
OM growth 3Y36.99%
OM growth 5YN/A
PM growth 3Y50.1%
PM growth 5YN/A
GM growth 3Y11.75%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALGM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ALGM has more shares outstanding than it did 1 year ago.
ALGM has a better debt/assets ratio than last year.
2.2 Solvency
ALGM has an Altman-Z score of 9.78. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
ALGM has a better Altman-Z score (9.78) than 79.25% of its industry peers.
ALGM has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as ALGM would need 3.36 years to pay back of all of its debts.
The Debt to FCF ratio of ALGM (3.36) is better than 62.26% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that ALGM is not too dependend on debt financing.
The Debt to Equity ratio of ALGM (0.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 9.78 |
ROIC/WACC1.25
WACC11.71%
2.3 Liquidity
ALGM has a Current Ratio of 4.57. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
ALGM has a Current ratio of 4.57. This is in the better half of the industry: ALGM outperforms 75.47% of its industry peers.
ALGM has a Quick Ratio of 3.19. This indicates that ALGM is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.19, ALGM is doing good in the industry, outperforming 65.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.57 | ||
| Quick Ratio | 3.19 |
3. Growth
3.1 Past
ALGM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
The Earnings Per Share has been growing by 69.27% on average over the past years. This is a very strong growth
Looking at the last year, ALGM shows a quite strong growth in Revenue. The Revenue has grown by 19.19% in the last year.
ALGM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.41% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y69.27%
EPS 5YN/A
EPS growth Q2Q-8.57%
Revenue 1Y (TTM)19.19%
Revenue growth 3Y14.41%
Revenue growth 5YN/A
Revenue growth Q2Q2.49%
3.2 Future
Based on estimates for the next years, ALGM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.06% on average per year.
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
EPS Next Y6.13%
EPS Next 2Y-15.71%
EPS Next 3Y2.57%
EPS Next 5Y12.06%
Revenue Next Year7.72%
Revenue Next 2Y-1.67%
Revenue Next 3Y4.83%
Revenue Next 5Y9.34%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.34 indicates a rather expensive valuation of ALGM.
Based on the Price/Earnings ratio, ALGM is valued a bit cheaper than the industry average as 74.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.92, ALGM is valued at the same level.
ALGM is valuated quite expensively with a Price/Forward Earnings ratio of 33.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM is on the same level as its industry peers.
ALGM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 33.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGM indicates a somewhat cheap valuation: ALGM is cheaper than 69.81% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALGM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.74 | ||
| EV/EBITDA | 18.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALGM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.32
PEG (5Y)N/A
EPS Next 2Y-15.71%
EPS Next 3Y2.57%
5. Dividend
5.1 Amount
ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALLEGRO MICROSYSTEMS INC
NASDAQ:ALGM (4/26/2024, 7:00:00 PM)
After market: 30.05 -0.05 (-0.17%)30.1
+0.97 (+3.33%)
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 Cap5.81B
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 NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 33.36 | ||
| 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)3.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.17% | ||
| ROE | 19.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.57% | ||
| PM (TTM) | 20.58% | ||
| GM | 56.06% | ||
| 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 | 4.57 | ||
| Quick Ratio | 3.19 | ||
| 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)
Growth
EPS 1Y (TTM)33.33%
EPS 3Y69.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.19%
Revenue growth 3Y14.41%
Revenue growth 5Y
Revenue growth 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
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