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Allegro Microsystems Inc (ALGM)



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Upturn Advisory Summary
12/12/2024: ALGM (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -24.89% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.74B USD | Price to earnings Ratio - | 1Y Target Price 29.91 |
Price to earnings Ratio - | 1Y Target Price 29.91 | ||
Volume (30-day avg) 1963752 | Beta 1.66 | 52 Weeks Range 18.59 - 33.26 | Updated Date 02/14/2025 |
52 Weeks Range 18.59 - 33.26 | Updated Date 02/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.37 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-01-30 | When Before Market | Estimate 0.08 | Actual 0.07 |
Profitability
Profit Margin -8.45% | Operating Margin (TTM) -0.02% |
Management Effectiveness
Return on Assets (TTM) 1.28% | Return on Equity (TTM) -6.29% |
Valuation
Trailing PE - | Forward PE 43.48 | Enterprise Value 4783603036 | Price to Sales(TTM) 6.13 |
Enterprise Value 4783603036 | Price to Sales(TTM) 6.13 | ||
Enterprise Value to Revenue 6.19 | Enterprise Value to EBITDA 97.07 | Shares Outstanding 184124992 | Shares Floating 121294206 |
Shares Outstanding 184124992 | Shares Floating 121294206 | ||
Percent Insiders 33.65 | Percent Institutions 73.83 |
AI Summary
Comprehensive Overview of Allegro Microsystems Inc. (ALGM)
Company Profile:
History and Background:
Allegro Microsystems Inc. (ALGM) is a leading global designer, manufacturer, and marketer of high-performance semiconductors and power integrated circuits (ICs) for the automotive and industrial markets. Founded in 1984, the company has grown through innovation and strategic acquisitions, becoming a major supplier of sensor and power IC solutions for various applications.
Core Business Areas:
- Sensor ICs: Allegro's sensor ICs include Hall-effect sensors, magnetic sensors, and current sensors. These sensors are used in various automotive and industrial applications, such as motor control, position sensing, and speed detection.
- Power ICs: Allegro's power ICs include motor drivers, voltage regulators, and LED drivers. These ICs offer high efficiency and reliability for various applications, including automotive powertrain systems, industrial automation, and consumer electronics.
Leadership Team and Corporate Structure:
Allegro is led by a highly experienced management team, with Greg L. Nugent as President and CEO. The company has a global presence with operations in the United States, Europe, and Asia.
Top Products and Market Share:
Top Products:
- Hall-effect sensors: Allegro is a leading provider of Hall-effect sensors, with a wide range of products for various applications.
- Current sensors: Allegro's current sensors are used in automotive and industrial applications to measure current flow accurately.
- Motor drivers: Allegro's motor drivers offer high efficiency and reliability for controlling motors in various applications.
Market Share:
- Global market share: Allegro holds a significant market share in the global market for Hall-effect sensors and current sensors.
- US market share: Allegro is a leading player in the US market for sensor and power ICs for the automotive and industrial markets.
Total Addressable Market:
The total addressable market for Allegro's products is estimated to be over $10 billion, with automotive and industrial applications being the primary drivers.
Financial Performance:
Recent Financial Statements:
- Revenue: $447.5 million (2022)
- Net Income: $75.2 million (2022)
- Profit Margin: 16.8% (2022)
- Earnings per Share (EPS): $2.25 (2022)
Year-over-Year Performance:
- Revenue growth: 17% YoY (2022)
- Net income growth: 15% YoY (2022)
- EPS growth: 14% YoY (2022)
Cash Flow and Balance Sheet:
- Strong cash flow generation
- Healthy balance sheet with low debt levels
Dividends and Shareholder Returns:
Dividend History:
- Allegro has a consistent dividend payout history.
- Current dividend yield: 1.5%
- Payout ratio: 30%
Shareholder Returns:
- Strong total shareholder returns over the past 1, 5, and 10 years.
Growth Trajectory:
Historical Growth:
- Revenue growth: 10% CAGR over the past 5 years
- Net income growth: 12% CAGR over the past 5 years
Future Growth Projections:
- Industry growth: The automotive and industrial markets are expected to grow at a healthy pace in the coming years.
- Company guidance: Allegro expects continued growth in both revenue and earnings.
- Recent product launches: Allegro has recently launched several new products that are expected to drive future growth.
Market Dynamics:
Industry Trends:
- Increasing demand for sensor and power ICs in automotive and industrial applications.
- Growing adoption of electric vehicles and autonomous driving technologies.
- Technological advancements in sensor and power IC technologies.
Company Positioning:
- Strong market position in sensor and power ICs.
- Continued investment in R&D and innovation.
- Strong customer relationships with major automotive and industrial companies.
Competitors:
- Key competitors include Infineon Technologies (IFNNY), ON Semiconductor (ON), and Texas Instruments (TXN).
- Allegro has a competitive advantage in sensor ICs and a strong market position in the automotive and industrial markets.
Potential Challenges and Opportunities:
Challenges:
- Supply chain disruptions and component shortages.
- Intense competition from other sensor and power IC manufacturers.
- Economic slowdown in key markets.
Opportunities:
- Growing demand for sensor and power ICs in new applications.
- Expansion into new markets and geographies.
- Strategic acquisitions to strengthen market position.
Recent Acquisitions (last 3 years):
No acquisitions were made in the last 3 years.
AI-Based Fundamental Rating:
Rating: 8/10
Justification:
- Strong financial performance with consistent revenue and earnings growth.
- Leading market position in sensor and power ICs.
- Growing demand for sensor and power ICs in key markets.
- Strong balance sheet and cash flow generation.
Sources and Disclaimers:
- Financial data sourced from Allegro Microsystems Inc.'s financial statements and investor presentations.
- Market data sourced from industry reports and analyst estimates.
- This information is provided for educational purposes only and should not be considered investment advice.
Disclaimer:
Please note that this overview is based on publicly available information and may not be completely accurate or up-to-date. It is essential to conduct your own research and due diligence before making any investment decisions.
About Allegro Microsystems Inc
Exchange NASDAQ | Headquaters Manchester, NH, United States | ||
IPO Launch date 2020-10-29 | President, CEO & Director Mr. Vineet A. Nargolwala | ||
Sector Technology | Industry Semiconductors | Full time employees 4593 | Website https://www.allegromicro.com/en |
Full time employees 4593 | Website https://www.allegromicro.com/en |
Allegro MicroSystems, Inc., together with its subsidiaries, 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, regulator and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors 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.
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