Allegro Microsystems Intrinsic Value Calculation – ALLEGRO MICROSYSTEMS Reports Record-Breaking Earnings Results for FY2024 Q1
August 6, 2023
🌥️Earnings Overview
ALLEGRO MICROSYSTEMS ($NASDAQ:ALGM) reported their earnings results for the first fiscal quarter of 2024 (ending June 30, 2023) on August 1, 2023. The company’s total revenue for the period increased by 27.8%, amounting to USD 278.3 million, while net income rose to USD 60.8 million, compared to 10.2 million for the same quarter of the previous year.
Price History
On Tuesday, ALLEGRO MICROSYSTEMS released their quarterly earnings report for the first quarter of the fiscal year 2024, and the results were record-breaking. Investors had high hopes for the performance of the company, but were quickly disappointed as the stock opened at $49.5 and closed at $45.2, a dismal 12.3% plunge from the prior closing price of $51.6. Despite the strong revenue and earnings performance, ALLEGRO MICROSYSTEMS’ stock experienced a selloff as investors were disappointed with the company’s outlook for the next quarter. ALLEGRO MICROSYSTEMS stated that they expect revenue to be flat compared to the prior quarter, and EPS to decline slightly due to higher expenses associated with product development.
This cautious outlook led to the sharp decline in the stock price at the end of trading on Tuesday. Overall, ALLEGRO MICROSYSTEMS had an impressive quarter, but investors were clearly not satisfied with the guidance for the next quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allegro Microsystems. More…
| Total Revenues | Net Income | Net Margin |
| 1.03k | 237.96 | 22.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allegro Microsystems. More…
| Operations | Investing | Financing |
| 205.7 | -120.25 | -21.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allegro Microsystems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.23k | 206.32 | 5.34 |
Key Ratios Snapshot
Some of the financial key ratios for Allegro Microsystems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | 72.9% | 26.3% |
| FCF Margin | ROE | ROA |
| 9.2% | 17.1% | 13.8% |
Analysis – Allegro Microsystems Intrinsic Value Calculation
At GoodWhale, we have conducted an in-depth analysis of ALLEGRO MICROSYSTEMS‘ financials. Our proprietary Valuation Line has determined the fair value of ALLEGRO MICROSYSTEMS share to be around $37.1. However, the current market price of the stock stands at $45.2, which is an overvaluation of 21.9%. We believe that this presents an opportunity for investors looking to purchase ALLEGRO MICROSYSTEMS shares. More…
Peers
Its main competitors are Foshan Nationstar Optoelectronics Co Ltd, Tekcore Co Ltd, and O2Micro International Ltd.
– Foshan Nationstar Optoelectronics Co Ltd ($SZSE:002449)
Foshan Nationstar Optoelectronics Co Ltd is a leading manufacturer of optoelectronic products and solutions. The company has a market cap of 5.14B as of 2022 and a return on equity of 3.64%. The company’s products are used in a wide range of applications including lighting, display, solar energy, and more.
– Tekcore Co Ltd ($TPEX:3339)
Tekcore Co Ltd is a Taiwanese company that manufactures semiconductors and other electronic components. It has a market capitalization of 635.06 million as of 2022 and a return on equity of 5.91%. The company specializes in the production of DRAM, SRAM, and Flash memory chips, as well as other semiconductor products. It is one of the largest suppliers of memory chips to the global market.
– O2Micro International Ltd ($NASDAQ:OIIM)
O2Micro International Ltd. is a fabless semiconductor company that specializes in the design, development, and commercialization of integrated circuits (ICs) and solutions for the power management and power conversion markets. The company’s products are used in a variety of end-markets, including notebook computers, monitors, motherboards, servers, cell phones, hand-held devices, digital cameras, and home appliances.
O2Micro International Ltd. has a market capitalization of $125.21 million as of March 2021 and a return on equity of 6.96%. The company’s products are used in a variety of end-markets, including notebook computers, monitors, motherboards, servers, cell phones, hand-held devices, digital cameras, and home appliances.
Summary
ALLEGRO MICROSYSTEMS reported their financial results for the first quarter of FY2024 on August 1st, showing total revenue of USD 278.3 million, a 27.8% increase compared to the previous year. Net income was reported at USD 60.8 million, compared to the prior year’s figure of 10.2 million. Despite this strong performance, investors reacted negatively to the earnings report as the stock price moved down the same day. With the company’s strong revenue growth and improved bottom line, investors should consider whether ALLEGRO MICROSYSTEMS is a good investment at its current valuation.
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