$Allegro Microsystems (ALGM.US)$In the March 2022 analysis, ...

Launched in 2020, mainly in the magnetic sensor and power integrated circuit business. Global market, current price is 30.68.

After listing, revenue shrank for two years, with an average growth rate of 7.7%, with an average growth rate of 26.7% in 2023. Operating profit also shrank for two years, with an average growth rate of 40%. Among them, it grew 48.9% in 2023, and net profit grew at an average rate of 50%, with an average growth rate of 56.8% in 2023. Interest charges for 2023 are negligible. The gross margin increased from 40.2% to 56.1% in the past 4 years, and the return on net assets reached 22% in 2023.

In the first three quarters of 2024, revenue increased 14.9%, operating profit increased 28.6%, and net profit increased 27.5%.

Since listing, the balance ratio fell from 22.5% to 18.2%, and soared to 27.5% in 2024Q3, mainly affected by major acquisitions. The ratio and growth rate of receivables and inventory are normal.

Goodwill and other intangible assets soared from $80 million to $510 million in 2024Q3, accounting for 45% of the net assets of $1,135 million, and long-term loans soared from $25 million to $250 million, accounting for 22% of net assets. Strangely enough, there was no abnormal increase in accounts receivable and inventory.

The profit statement shows a sharp increase in main business costs in 2024Q3. The gross margin fell from 57.9% to 52.5%, and operating expenses also increased sharply, causing operating profit to shrink by 44.1%. Coupled with an increase in interest expenses, the final net profit shrank by 48.3%.

It currently has cash of 214 million, a current ratio of 4.6, and a quick ratio of 2.8.

Since the listing, net operating cash flow was significantly higher than net investment, but the 2024Q3 acquisition also spent shareholders' surpluses.

Currently, the price-earnings ratio is 31.6, and the price-earnings ratio is TTM 26.9. Considering the recent completion of a major acquisition, the profit situation deteriorated sharply in the first quarter after the acquisition. The long-term impact is still unclear, so wait and see.