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ALGM

Allegro MicroSystemsNasdaqGS:ALGM Stock Report

Market Cap

US$6.6b

7D

10.6%

1Y

37.4%

Updated

09 Dec, 2021

Data

Company Financials +
ALGM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance1/6
Financial Health5/6
Dividends0/6

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

Texas Instruments

NasdaqGS:TXN

US$181.4b

Analog Devices

NasdaqGS:ADI

US$97.8b

Microchip Technology

NasdaqGS:MCHP

US$48.5b

ON Semiconductor

NasdaqGS:ON

US$27.7b

Price History & Performance

Summary of all time highs, changes and price drops for Allegro MicroSystems
Historical stock prices
Current Share PriceUS$34.86
52 Week HighUS$36.85
52 Week LowUS$22.05
Beta0
1 Month Change6.67%
3 Month Change13.77%
1 Year Change37.41%
3 Year Changen/a
5 Year Changen/a
Change since IPO96.95%

Recent News & Updates

Oct 29
Investors Met With Slowing Returns on Capital At Allegro MicroSystems (NASDAQ:ALGM)

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...

Oct 13

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.

Shareholder Returns

ALGMUS SemiconductorUS Market
7D10.6%3.2%4.0%
1Y37.4%55.2%21.7%

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.

Price Volatility

Is ALGM's price volatile compared to industry and market?
ALGM volatility
ALGM Average Weekly Movement6.0%
Semiconductor Industry Average Movement6.8%
Market Average Movement6.3%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19903,874Ravi Vighttps://www.allegromicro.com

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

How do Allegro MicroSystems's earnings and revenue compare to its market cap?
ALGM fundamental statistics
Market CapUS$6.61b
Earnings (TTM)US$64.40m
Revenue (TTM)US$721.31m

102.7x

P/E Ratio

9.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALGM income statement (TTM)
RevenueUS$721.31m
Cost of RevenueUS$351.09m
Gross ProfitUS$370.22m
ExpensesUS$305.82m
EarningsUS$64.40m

Last Reported Earnings

Sep 24, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin51.33%
Net Profit Margin8.93%
Debt/Equity Ratio3.8%

How did ALGM perform over the long term?

See historical performance and comparison

Valuation

Is Allegro MicroSystems undervalued compared to its fair value and its price relative to the market?

0.4%

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).


Future Growth

How is Allegro MicroSystems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

28.5%

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%)


Past Performance

How has Allegro MicroSystems performed over the past 5 years?

75.7%

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.


Financial Health

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).


Balance Sheet


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Ravi Vig (60 yo)

5.92yrs

Tenure

US$6,217,609

Compensation

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.


Leadership Team

Experienced Management: ALGM's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: ALGM's board of directors are considered experienced (4.4 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Allegro MicroSystems, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Allegro MicroSystems, Inc.
  • 955 Perimeter Road
  • Manchester
  • New Hampshire
  • 03103-3353
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/09 00:06
End of Day Share Price2021/12/08 00:00
Earnings2021/09/24
Annual Earnings2021/03/26


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.