ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
NASDAQ:ALGM • US01749D1054
36.59 USD
+0.12 (+0.33%)
At close: Mar 2, 2026
35.57 USD
-1.02 (-2.79%)
After Hours: 3/2/2026, 8:02:01 PM
ALGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. While ALGM has a great health rating, its profitability is only average at the moment. ALGM is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years ALGM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ALGM (-0.93%) is comparable to the rest of the industry.
- With a Return On Equity value of -1.37%, ALGM perfoms like the industry average, outperforming 45.22% of the companies in the same industry.
- ALGM has a Return On Invested Capital (0.04%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
- With a Operating Margin value of 0.07%, ALGM perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
- The Gross Margin of ALGM (44.96%) is comparable to the rest of the industry.
- ALGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- ALGM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ALGM has less shares outstanding
- ALGM has less shares outstanding than it did 5 years ago.
- ALGM has a worse debt/assets ratio than last year.
2.2 Solvency
- ALGM has an Altman-Z score of 9.67. 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 9.67, ALGM is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
- ALGM has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as ALGM would need 2.40 years to pay back of 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 65.22% of the companies in the same industry.
- A Debt/Equity ratio of 0.30 indicates that ALGM is not too dependend on debt financing.
- ALGM has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: ALGM underperforms 60.00% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ALGM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 9.67 |
ROIC/WACC0
WACC11.03%
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.
- ALGM has a Current ratio of 3.65. This is comparable to the rest of the industry: ALGM outperforms 60.00% of its industry peers.
- A Quick Ratio of 2.39 indicates that ALGM has no problem at all paying its short term obligations.
- With a Quick ratio value of 2.39, ALGM perfoms like the industry average, outperforming 57.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
- ALGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
- ALGM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -32.49% yearly.
- Looking at the last year, ALGM shows a quite strong growth in Revenue. The Revenue has grown by 8.67% in the last year.
- The Revenue has been growing slightly by 2.21% on average over the past years.
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
- ALGM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.72% yearly.
EPS Next Y125.71%
EPS Next 2Y103.02%
EPS Next 3Y86.73%
EPS Next 5Y73.25%
Revenue Next Year22.99%
Revenue Next 2Y19.95%
Revenue Next 3Y19.5%
Revenue Next 5Y18.72%
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.
- The Revenue 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
- Based on the Price/Earnings ratio of 85.09, the valuation of ALGM can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as ALGM.
- The average S&P500 Price/Earnings ratio is at 27.13. ALGM is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 36.99 indicates a quite expensive valuation of ALGM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGM is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, ALGM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.09 | ||
| Fwd PE | 36.99 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALGM.
- Based on the Price/Free Cash Flow ratio, ALGM is valued a bit cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.51 | ||
| EV/EBITDA | 103.84 |
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)0.68
PEG (5Y)N/A
EPS Next 2Y103.02%
EPS Next 3Y86.73%
5. Dividend
5.1 Amount
- ALGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
36.59
+0.12 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)05-06 2026-05-06/amc
Inst Owners75.11%
Inst Owner Change-1.59%
Ins Owners0.65%
Ins Owner Change0.01%
Market Cap6.78B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts83.33
Price Target46.75 (27.77%)
Short Float %10%
Short Ratio4.9
Dividend
| Industry Rank | Sector 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)19.31%
PT rev (3m)18.79%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)1.34%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)3.4%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.09 | ||
| Fwd PE | 36.99 | ||
| P/S | 8.07 | ||
| P/FCF | 56.51 | ||
| P/OCF | 45.9 | ||
| P/B | 7.04 | ||
| P/tB | 13.18 | ||
| EV/EBITDA | 103.84 |
EPS(TTM)0.43
EY1.18%
EPS(NY)0.99
Fwd EY2.7%
FCF(TTM)0.65
FCFY1.77%
OCF(TTM)0.8
OCFY2.18%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.68
PEG (5Y)N/A
Graham Number7.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 9.67 |
F-Score5
WACC11.03%
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 Year22.99%
Revenue Next 2Y19.95%
Revenue Next 3Y19.5%
Revenue Next 5Y18.72%
EBIT growth 1Y-97.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year177.32%
EBIT Next 3Y89.56%
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 85.09 and the Price/Book (PB) ratio is 7.04.
How financially healthy is ALLEGRO MICROSYSTEMS INC?
The financial health rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 7 / 10.