ALGM

Allegro MicroSystems, Inc.

Fundamental data last updated:June 5, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Allegro MicroSystems, Inc. designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; power ICs comprising motor driver ICs, and regulator and LED driver ICs; and photonic and 3D sensing components, including photodiodes, eye-safe lasers, and readout ICs for LiDAR applications. The company sells its products to original equipment manufacturers and suppliers primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.

 


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VALUATION

P/E

-599.83

Market Cap ($M USD)

$8.98B

Forward P/E

20.70

PEG

0.01

PRICE TO SALES

10.09

PRICE TO BOOK

9.34

EV / EBITDA

101.20

5-Year Average P/E

Free Cash Flow Yield

1.39%

DCF Value

$3.79

Graham Number

N/A

Price to FCF

71.90

EV to FCF

72.85

Earnings Yield

-0.17%

FCF Yield

1.39%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.08

Next Year EPS Growth Estimate

$2.33

Next Year Revenue Growth Estimate

$170.10B

Return on Equity (ROE)

-1.57%

FREE CASH FLOW

Operating Margin

3.44%

Debt-to-Equity

0.30

Piotroski F-Score

5

Altman Z-Score

13.25

Return on Invested Capital (ROIC)

2.41%

Current Ratio

3.45

Quick Ratio

2.21

Net Debt to EBITDA

1.32

Interest Coverage

1.05

Gross Profit margin

46.30%

FCF PER SHARE

$0.67

REVENUE PER SHARE

$4.80

Analyze ALGM on TradingView

Gainseekers Quantitative Analysis

Summary

Allegro MicroSystems, Inc. presents a perplexing valuation scenario. Despite a staggering negative Price/Earnings ratio, the Forward P/E of 21.01 suggests optimism about future earnings. However, the stock’s trading price has been significantly extended above its DCF value, indicating potential overvaluation. The Altman Z-score of 12.71 reflects strong financial health, yet the negative Earnings Yield raises concerns about current profitability. The market seems to be pricing in a rapid turnaround, but the gap between current execution and expectations is wide.

AI Exposure / Tech Reliance

Operating in the semiconductor industry, Allegro MicroSystems is well-positioned to capitalize on AI advancements. The sector's inherent demand for cutting-edge technology aligns with Allegro's potential to innovate and adapt. This positioning could drive future growth as AI integration becomes more prevalent.

The Bull Case

For the discerning GARP investor, Allegro offers intriguing prospects. The company's ROIC of 2.41% and a Piotroski F-Score of 5 suggest moderate efficiency and financial health. Despite a low FCF Yield, the operating margin of 3.44% indicates some pricing power. These metrics hint at potential capital efficiency improvements, making it a speculative buy for those betting on management's ability to enhance profitability.

The Bear Case

Yet, the stock is not without its pitfalls. With a Price/Book ratio of 9.48 and Price/Sales of 10.19, the valuation multiples are alarmingly high, suggesting the stock is priced for perfection. The negative EPS and Earnings Yield further underscore profitability challenges. Trading close to its 52-week high, the stock appears technically overextended, raising red flags for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$52.57

Institutional Ownership %

1-Year Beta

2.02

Insider Buying % (6 Mo)

Distance to 52-Week High

9.50%

Distance to 52-Week Low

53.53%

EARNINGS SURPRISE %

4.17%

50-DAY SMA

$40.54

200-DAY SMA

$33.29

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.