ALLEGRO MICROSYSTEMS INC (ALGM) Fundamental Analysis & Valuation

NASDAQ:ALGM • US01749D1054

Current stock price

40 USD
+1.78 (+4.66%)
At close:
39.941 USD
-0.06 (-0.15%)
After Hours:

This ALGM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ALGM Profitability Analysis

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.
  • Each year in the past 5 years ALGM had a positive operating cash flow.
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's Return On Equity of -1.37% is in line compared to the rest of the industry. ALGM outperforms 46.96% of its industry peers.
  • With a Return On Invested Capital value of 0.04%, ALGM perfoms like the industry average, outperforming 46.96% 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

  • Looking at the Operating Margin, with a value of 0.07%, ALGM is in line with its industry, outperforming 46.96% of the companies in the same industry.
  • ALGM has a Gross Margin (44.96%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of ALGM has grown nicely.
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

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7

2. ALGM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALGM is destroying value.
  • The number of shares outstanding for ALGM has been reduced compared to 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.
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 10.52. This indicates that ALGM is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ALGM (10.52) is better than 69.57% of its industry peers.
  • 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 64.35% 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.
  • With a Debt to Equity ratio value of 0.30, ALGM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
  • Although ALGM's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 2.4
Altman-Z 10.52
ROIC/WACC0
WACC11.7%
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

  • A Current Ratio of 3.65 indicates that ALGM has no problem at all paying its short term obligations.
  • ALGM has a Current ratio (3.65) which is in line with its industry peers.
  • A Quick Ratio of 2.39 indicates that ALGM has no problem at all paying its short term obligations.
  • The Quick ratio of ALGM (2.39) is comparable to the rest of the industry.
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. ALGM Growth Analysis

3.1 Past

  • ALGM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
  • The earnings per share for ALGM have been decreasing by -32.49% on average. This is quite bad
  • 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 56.52% 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 16.55% on average per year.
EPS Next Y125.71%
EPS Next 2Y102.59%
EPS Next 3Y85.91%
EPS Next 5Y56.52%
Revenue Next Year23.04%
Revenue Next 2Y20.46%
Revenue Next 3Y19.92%
Revenue Next 5Y16.55%

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.
ALGM Yearly Revenue VS EstimatesALGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
ALGM Yearly EPS VS EstimatesALGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

4

4. ALGM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 93.02 indicates a quite expensive valuation of ALGM.
  • ALGM's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.87, ALGM is valued quite expensively.
  • A Price/Forward Earnings ratio of 40.61 indicates a quite expensive valuation of ALGM.
  • Based on the Price/Forward Earnings ratio, ALGM is valued a bit cheaper than the industry average as 61.74% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 38.51. ALGM is around the same levels.
Industry RankSector Rank
PE 93.02
Fwd PE 40.61
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 is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, ALGM is valued a bit cheaper than the industry average as 66.09% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 61.78
EV/EBITDA 113.7
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.
  • A more expensive valuation may be justified as ALGM's earnings are expected to grow with 85.91% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y102.59%
EPS Next 3Y85.91%

More info and screens

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

0

5. ALGM Dividend Analysis

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

ALGM Fundamentals: All Metrics, Ratios and Statistics

ALLEGRO MICROSYSTEMS INC

NASDAQ:ALGM (4/17/2026, 8:00:00 PM)

After market: 39.941 -0.06 (-0.15%)

40

+1.78 (+4.66%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-29
Earnings (Next)05-07
Inst Owners74.55%
Inst Owner Change-0.03%
Ins Owners0.62%
Ins Owner Change-0.05%
Market Cap7.41B
Revenue(TTM)839.73M
Net Income(TTM)-13.21M
Analysts84.21
Price Target46.53 (16.33%)
Short Float %9.63%
Short Ratio5.2
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)-0.46%
PT rev (3m)18.75%
EPS NQ rev (1m)-2%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 93.02
Fwd PE 40.61
P/S 8.83
P/FCF 61.78
P/OCF 50.18
P/B 7.7
P/tB 14.41
EV/EBITDA 113.7
EPS(TTM)0.43
EY1.08%
EPS(NY)0.98
Fwd EY2.46%
FCF(TTM)0.65
FCFY1.62%
OCF(TTM)0.8
OCFY1.99%
SpS4.53
BVpS5.2
TBVpS2.78
PEG (NY)0.74
PEG (5Y)N/A
Graham Number7.0901 (-82.27%)
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 10.52
F-Score5
WACC11.7%
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 2Y102.59%
EPS Next 3Y85.91%
EPS Next 5Y56.52%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y-1.93%
Revenue growth 5Y2.21%
Sales Q2Q%28.86%
Revenue Next Year23.04%
Revenue Next 2Y20.46%
Revenue Next 3Y19.92%
Revenue Next 5Y16.55%
EBIT growth 1Y-97.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year193.63%
EBIT Next 3Y86.25%
EBIT Next 5Y55.41%
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 Fundamental Analysis 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.


Can you provide the profitability details for ALLEGRO MICROSYSTEMS INC?

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


What is the expected EPS growth for ALLEGRO MICROSYSTEMS INC (ALGM) stock?

The Earnings per Share (EPS) of ALLEGRO MICROSYSTEMS INC (ALGM) is expected to grow by 125.71% in the next year.


Is the dividend of ALLEGRO MICROSYSTEMS INC sustainable?

The dividend rating of ALLEGRO MICROSYSTEMS INC (ALGM) is 0 / 10 and the dividend payout ratio is 0%.