ALLEGRO MICROSYSTEMS INC (ALGM) Stock Fundamental Analysis
NASDAQ:ALGM - Nasdaq - US01749D1054 - Common Stock - Currency: USD
Overall ALGM gets a fundamental rating of 4 out of 10. We evaluated ALGM against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of ALGM is average, but there are quite some concerns on its profitability. ALGM is quite expensive at the moment. It does show 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.
ALGM had positive earnings in 4 of the past 5 years.
In the past 5 years ALGM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALGM (-5.14%) is worse than 67.27% of its industry peers.
ALGM has a Return On Equity of -7.85%. This is in the lower half of the industry: ALGM underperforms 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.14% | ||
| ROE | -7.85% | ||
| ROIC | N/A |
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
The Gross Margin of ALGM (44.35%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ALGM has grown nicely.
The Profit Margin and Operating Margin are not available for ALGM so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.35% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
ALGM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALGM has less shares outstanding
Compared to 1 year ago, ALGM has a worse debt to assets ratio.
2.2 Solvency
ALGM has an Altman-Z score of 7.69. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
ALGM has a Altman-Z score of 7.69. This is in the better half of the industry: ALGM outperforms 71.82% of its industry peers.
ALGM has a debt to FCF ratio of 16.66. This is a negative value and a sign of low solvency as ALGM would need 16.66 years to pay back of all of its debts.
ALGM's Debt to FCF ratio of 16.66 is in line compared to the rest of the industry. ALGM outperforms 42.73% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that ALGM is not too dependend on debt financing.
ALGM's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. ALGM is outperformed by 67.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 16.66 | ||
| Altman-Z | 7.69 |
ROIC/WACCN/A
WACC11.51%
2.3 Liquidity
A Current Ratio of 4.30 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a better Current ratio (4.30) than 66.36% of its industry peers.
A Quick Ratio of 2.66 indicates that ALGM has no problem at all paying its short term obligations.
ALGM has a Quick ratio (2.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The earnings per share for ALGM have decreased strongly by -70.00% 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.
Looking at the last year, ALGM shows a very negative growth in Revenue. The Revenue has decreased by -30.91% in the last year.
ALGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-70%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)-30.91%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%21.86%
3.2 Future
The Earnings Per Share is expected to grow by 83.54% 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 18.67% on average per year.
EPS Next Y123.13%
EPS Next 2Y101.9%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue Next Year17.97%
Revenue Next 2Y18.23%
Revenue Next 3Y18.67%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 102.13, which means the current valuation is very expensive for ALGM.
Compared to the rest of the industry, the Price/Earnings ratio of ALGM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.82, ALGM is valued quite expensively.
A Price/Forward Earnings ratio of 31.32 indicates a quite expensive valuation of ALGM.
ALGM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.24. ALGM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.13 | ||
| Fwd PE | 31.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALGM.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALGM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 272.7 | ||
| EV/EBITDA | 130.47 |
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 83.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y101.9%
EPS Next 3Y83.54%
5. Dividend
5.1 Amount
No dividends for ALGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.64
-0.19 (-0.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.92%
Inst Owner Change-6.39%
Ins Owners0.68%
Ins Owner Change0.55%
Market Cap5.67B
Analysts83.33
Price Target38.51 (25.69%)
Short Float %6.59%
Short Ratio4
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)11.53%
Min EPS beat(2)5.42%
Max EPS beat(2)17.65%
EPS beat(4)4
Avg EPS beat(4)23.38%
Min EPS beat(4)5.42%
Max EPS beat(4)44.96%
EPS beat(8)8
Avg EPS beat(8)15.87%
EPS beat(12)12
Avg EPS beat(12)13.14%
EPS beat(16)16
Avg EPS beat(16)11.36%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)2.03%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)2.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.79%
Revenue beat(12)4
Avg Revenue beat(12)-0.06%
Revenue beat(16)7
Avg Revenue beat(16)0.2%
PT rev (1m)28.69%
PT rev (3m)37.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)0%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.13 | ||
| Fwd PE | 31.32 | ||
| P/S | 7.82 | ||
| P/FCF | 272.7 | ||
| P/OCF | 91.52 | ||
| P/B | 6.1 | ||
| P/tB | 12.19 | ||
| EV/EBITDA | 130.47 |
EPS(TTM)0.3
EY0.98%
EPS(NY)0.98
Fwd EY3.19%
FCF(TTM)0.11
FCFY0.37%
OCF(TTM)0.33
OCFY1.09%
SpS3.92
BVpS5.03
TBVpS2.51
PEG (NY)0.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.14% | ||
| ROE | -7.85% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.35% | ||
| FCFM | 2.87% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 16.66 | ||
| Debt/EBITDA | 7.59 | ||
| Cap/Depr | 63.77% | ||
| Cap/Sales | 5.67% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 136.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 7.69 |
F-Score3
WACC11.51%
ROIC/WACCN/A
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)-70%
EPS 3Y-32.49%
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y123.13%
EPS Next 2Y101.9%
EPS Next 3Y83.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.91%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%21.86%
Revenue Next Year17.97%
Revenue Next 2Y18.23%
Revenue Next 3Y18.67%
Revenue Next 5YN/A
EBIT growth 1Y-108.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year202.96%
EBIT Next 3Y80.06%
EBIT Next 5YN/A
FCF growth 1Y-63.51%
FCF growth 3Y-37.77%
FCF growth 5Y-10.31%
OCF growth 1Y-65.93%
OCF growth 3Y-26.53%
OCF growth 5Y-5.33%