ALGM Stock Overview
Allegro MicroSystems, Inc. designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems.
Allegro MicroSystems Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$34.86|
|52 Week High||US$36.85|
|52 Week Low||US$22.05|
|1 Month Change||6.67%|
|3 Month Change||13.77%|
|1 Year Change||37.41%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||96.95%|
Recent News & Updates
Investors Met With Slowing Returns on Capital At Allegro MicroSystems (NASDAQ:ALGM)
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Why Allegro MicroSystems Could Be A Long And Why Not
The Q1 report was unlike the ones that came before it and the effect could be seen in how the stock reacted differently. ALGM is not aware of any impact of inventory building on the quarterly numbers, but at the same time, there are limits to how far visibility goes. Top executives continue to sell stock as they have for some time and that can cause problems, whether it’s justified or not. Long Allegro MicroSystems has its merits, but there are also counterarguments, making the case not as clear-cut as it needs to be.
|ALGM||US Semiconductor||US Market|
Return vs Industry: ALGM underperformed the US Semiconductor industry which returned 51.9% over the past year.
Return vs Market: ALGM exceeded the US Market which returned 19.8% over the past year.
|ALGM Average Weekly Movement||6.0%|
|Semiconductor Industry Average Movement||6.8%|
|Market Average Movement||6.3%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: ALGM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ALGM's weekly volatility (6%) has been stable over the past year.
About the Company
Allegro MicroSystems, Inc. designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, and regulator and LED driver ICs, as well as photonic and 3D sensing components, including photodiodes, eye-safe lasers and rangefinders, and readout ICs for LiDAR applications. The company sells its products to original equipment manufacturers and suppliers primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment.
Allegro MicroSystems Fundamentals Summary
|ALGM fundamental statistics|
Is ALGM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ALGM income statement (TTM)|
|Cost of Revenue||US$351.09m|
Last Reported Earnings
Sep 24, 2021
Next Earnings Date
|Earnings per share (EPS)||0.34|
|Net Profit Margin||8.93%|
How did ALGM perform over the long term?See historical performance and comparison
Is Allegro MicroSystems undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALGM ($34.86) is trading below our estimate of fair value ($35.01)
Significantly Below Fair Value: ALGM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ALGM is poor value based on its PE Ratio (102.7x) compared to the US Semiconductor industry average (31.1x).
PE vs Market: ALGM is poor value based on its PE Ratio (102.7x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: ALGM is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: ALGM is overvalued based on its PB Ratio (10.1x) compared to the US Semiconductor industry average (4.9x).
How is Allegro MicroSystems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALGM's forecast earnings growth (28.5% per year) is above the savings rate (2%).
Earnings vs Market: ALGM's earnings (28.5% per year) are forecast to grow faster than the US market (13.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ALGM's revenue (11.6% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: ALGM's revenue (11.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALGM's Return on Equity is forecast to be high in 3 years time (21.9%)
How has Allegro MicroSystems performed over the past 5 years?
Last years earnings growth
Earnings and Revenue History
Quality Earnings: ALGM has a large one-off loss of $74.6M impacting its September 24 2021 financial results.
Growing Profit Margin: ALGM's current net profit margins (8.9%) are higher than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if ALGM's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare ALGM's past year earnings growth to its 5-year average.
Earnings vs Industry: ALGM earnings growth over the past year (75.7%) underperformed the Semiconductor industry 79.6%.
Return on Equity
High ROE: ALGM's Return on Equity (9.8%) is considered low.
How is Allegro MicroSystems's financial position?
Financial Position Analysis
Short Term Liabilities: ALGM's short term assets ($445.9M) exceed its short term liabilities ($88.4M).
Long Term Liabilities: ALGM's short term assets ($445.9M) exceed its long term liabilities ($58.3M).
Debt to Equity History and Analysis
Debt Level: ALGM has more cash than its total debt.
Reducing Debt: Insufficient data to determine if ALGM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ALGM's debt is well covered by operating cash flow (647.2%).
Interest Coverage: ALGM's interest payments on its debt are well covered by EBIT (27.8x coverage).
What is Allegro MicroSystems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ALGM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ALGM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ALGM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ALGM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ALGM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ravi Vig (60 yo)
Mr. Ravi Vig has been President at Allegro MicroSystems, Inc. since June 2016 and serves as its Chief Executive Officer and Director since 2016. Mr. Vig served as Chief Operating Officer at Allegro MicroSy...
CEO Compensation Analysis
Compensation vs Market: Ravi's total compensation ($USD6.22M) is about average for companies of similar size in the US market ($USD6.27M).
Compensation vs Earnings: Insufficient data to compare Ravi's compensation with company performance.
Experienced Management: ALGM's management team is considered experienced (2.9 years average tenure).
Experienced Board: ALGM's board of directors are considered experienced (4.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALGM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Allegro MicroSystems, Inc.'s employee growth, exchange listings and data sources
- Name: Allegro MicroSystems, Inc.
- Ticker: ALGM
- Exchange: NasdaqGS
- Founded: 1990
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$6.613b
- Shares outstanding: 189.70m
- Website: https://www.allegromicro.com
Number of Employees
- Allegro MicroSystems, Inc.
- 955 Perimeter Road
- New Hampshire
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/09 00:06|
|End of Day Share Price||2021/12/08 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.