ALABAstera Labs, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×) and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ALAB?
Astera Labs, Inc. earns 46% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 37 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Semiconductors median 7.5% · 12 months to Q2 2026
- Cash conversion
- 1.55×
Cash conversion · 7.45× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2022 | −75% |
| FY2023 | −25% |
| FY2024 | −29% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2026
- 75%
- Operating margin12 months to Q2 2026
- 23%
- Net margin12 months to Q2 2026
- 31%
- Free cash flow margin
- 23%
- R&D as % of revenue
- 36%
- Revenue, trailing twelve months
- $1.20B
- Free cash flow, trailing twelve months
- $277M
- Net income, trailing twelve months
- $369M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 46%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.