Astera Labs, Inc. Common Stock
Astera Labs, Inc. Common Stock Fundamental Analysis
Astera Labs, Inc. Common Stock (ALAB) shows moderate financial fundamentals with a PE ratio of 99.82, profit margin of 25.70%, and ROE of 18.21%. The company generates $0.8B in annual revenue with weak year-over-year growth of 2.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ALAB's fundamental strength across five key dimensions:
Efficiency Score
ExcellentALAB demonstrates superior asset utilization.
Valuation Score
WeakALAB trades at a premium to fair value.
Growth Score
WeakALAB faces weak or negative growth trends.
Financial Health Score
ExcellentALAB maintains a strong and stable balance sheet.
Profitability Score
ExcellentALAB achieves industry-leading margins.
Key Financial Metrics
Is ALAB Expensive or Cheap?
P/E Ratio
ALAB trades at 99.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALAB's PEG of 9.90 indicates potential overvaluation.
Price to Book
The market values Astera Labs, Inc. Common Stock at 16.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 114.36 times EBITDA. This signals the market has high growth expectations.
How Well Does ALAB Make Money?
Net Profit Margin
For every $100 in sales, Astera Labs, Inc. Common Stock keeps $25.70 as profit after all expenses.
Operating Margin
Core operations generate 20.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.21 in profit for every $100 of shareholder equity.
ROA
Astera Labs, Inc. Common Stock generates $14.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Astera Labs, Inc. Common Stock generates strong operating cash flow of $318.17M, reflecting robust business health.
Free Cash Flow
Astera Labs, Inc. Common Stock generates strong free cash flow of $280.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.66 in free cash annually.
FCF Yield
ALAB converts 1.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
99.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
25.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How ALAB Stacks Against Its Sector Peers
| Metric | ALAB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 99.82 | 35.19 | Worse (Expensive) |
| ROE | 18.21% | 1155.00% | Weak |
| Net Margin | 25.70% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 10.24 | 4.71 | Strong Liquidity |
| ROA | 14.31% | -314918.00% (disorted) | Strong |
ALAB outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Astera Labs, Inc. Common Stock's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.16%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
62.78%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
199.12%
Industry Style: Growth, Innovation, High Beta
High Growth