Fundamental analysis: Allegro MicroSystems, Inc. (ALGM)

Awarener score: 5.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: a result could not be reached

Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
Allegro MicroSystems, Inc. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 7.7

ALGM profit margins -on goods and services sold- are usually very good. They stand slightly better than rival companies.
Business profit on sales tends to be very good. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain close to average when compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly better than similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain similar to rivals.
Total net profit tends to be very good when confronted to sales. Company stands similar to comparable firms.

Growth score: 1.0

Allegro MicroSystems, Inc. has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
EBITDA growth is unknown due to insufficient inputs, which compares unknown against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
Net income growth could not be estimated, and so it is unknown against peer companies.
There was not enough input data to estimate EPS trend. It's been an impossibility to compare it with industry peers.

Miscellaneous score: 7.3

ALGM managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been somewhat better than peers.
Research and development expenses consume a moderate portion of revenues. It's encouraging in relation to competitors.
The company shows business growth in relation to research and development efforts. It stands excellent in relation to rival companies.

Profitability score: 8.2

Allegro MicroSystems, Inc. usually gets excellent returns on the resources it controls. It proves similar to peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 4.6

ALGM usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands almost average when measured against rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is similar to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.4

Allegro MicroSystems, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be encouraging in relation to peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be a slight improvement compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains better than most rival firms.
Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is slightly better than similar enterprises.
Usually, sales are on a month and a half credit. It still ranks encouraging in relation to peers.
Normally has approximately four months of sales worth in inventory. It comes up as a slight improvement compared to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be somewhat better than peers.
On average pays suppliers two months after the purchase. It ranks below average when measured against industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's rather normal in relation to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks top tier when measured against comparable enterprises.
Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 4.1

Allegro MicroSystems, Inc. looks heavily expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
In the past twelve months, the company generated some free funds in relation to the stock price, which stands somewhat worse than similar companies.
In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still below average when measured against industry firms.
In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up close to average when compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks weak when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
In the past twelve months, the operating business lost a little money. It happens to be below average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.6

Company at a glance: Allegro MicroSystems, Inc. (ALGM)

Sector, industry: Technology, Semiconductors

Market Cap: 9.07 billions

Revenues TTM: 0.90 billions

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; power ICs comprising motor driver ICs, and regulator and LED driver ICs; and photonic and 3D sensing components, including photodiodes, eye-safe lasers, 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. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.