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Stock impact report

3 Cash-Producing Stocks That Concern Us [Yahoo! Finance]

Allegro MicroSystems, Inc. (ALGM) 
Company Research Source: Yahoo! Finance
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities. Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies to steer clear of and a few better alternatives. Allegro MicroSystems (ALGM) Trailing 12-Month Free Cash Flow Margin: 7.4% The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers. Why Are We Wary of ALGM? Sales tumbled by 14.2% annually over the last two years, showing market trends are working against its favor during this cycle Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 15.6% annually Low free cash flow margin of 7.8% declined over the last five years as its investments ramped, giving it little breathing r Show less Read more
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