(ALGM) Allegro Microsystems - NASDAQ
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 8.931m USD | Total Return: 61.6% in 12m
Avg Turnover: 99.5M
EPS Trend: -86.7%
Qual. Beats: 0
Rev. Trend: -74.1%
Qual. Beats: 5
Warnings
Interest Coverage Ratio 0.8 is critical
Tailwinds
Confidence
Allegro MicroSystems (ALGM) specializes in the design and manufacture of magnetic sensor integrated circuits (ICs) and application-specific power ICs. Its product portfolio focuses on motion control and energy-efficient systems, including position, speed, and current sensors, as well as motor and LED drivers. The company serves original equipment manufacturers and distributors globally, with a significant operational presence in the United States, Europe, and Asia.
The business model relies heavily on the automotive and industrial sectors, where demand is driven by the increasing electrification of vehicles and the automation of manufacturing processes. In the semiconductor industry, sensor ICs are critical components for Advanced Driver Assistance Systems (ADAS) and green energy infrastructure. For a deeper look into the companys valuation metrics, you may find it useful to explore ValueRay.
Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro utilizes a multi-channel sales strategy involving a direct sales force, third-party distributors, and independent representatives. This approach allows the company to maintain a broad market reach across diverse geographic regions, including Japan and Greater China.
- Electric vehicle adoption drives demand for high-performance magnetic and current sensor ICs
- Automotive production volume fluctuations impact revenue growth and inventory cycles in core segments
- Rapid industrial automation expansion increases sales for motion control and power management ICs
- Semiconductor supply chain costs and foundry capacity constraints influence gross margin stability
| Net Income: -14.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 7.27 > 1.0 |
| NWC/Revenue: 40.18% < 20% (prev 51.14%; Δ -10.96% < -1%) |
| CFO/TA 0.12 > 3% & CFO 163.1m > Net Income -14.9m |
| Net Debt (137.2m) to EBITDA (89.9m): 1.53 < 3 |
| Current Ratio: 3.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (185.3m) vs 12m ago 0.62% < -2% |
| Gross Margin: 46.30% > 18% (prev 44.35%; Δ 1.95% > 0.5%) |
| Asset Turnover: 62.75% > 50% (prev 51.02%; Δ 11.72% > 0%) |
| Interest Coverage Ratio: 0.76 > 6 (EBIT TTM 22.3m / Interest Expense TTM 29.3m) |
| A: 0.25 (Total Current Assets 503.6m - Total Current Liabilities 145.9m) / Total Assets 1.42b |
| B: -0.05 (Retained Earnings -68.5m / Total Assets 1.42b) |
| C: 0.02 (EBIT TTM 22.3m / Avg Total Assets 1.42b) |
| D: 2.08 (Book Value of Equity 956.4m / Total Liabilities 459.7m) |
| Altman-Z'' = 3.79 = AA |
| DSRI: 0.90 (Receivables 93.2m/84.6m, Revenue 890.1m/725.0m) |
| GMI: 0.96 (GM 44.35% / 46.30%) |
| AQI: 0.99 (AQ_t 0.43 / AQ_t-1 0.43) |
| SGI: 1.23 (Revenue 890.1m / 725.0m) |
| TATA: -0.13 (NI -14.9m - CFO 163.1m) / TA 1.42b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of June 15, 2026, the stock is trading at USD 50.41 with a total of 1,617,643 shares traded.
Over the past week, the price has changed by +8.65%,
over one month by +12.09%,
over three months by +60.63% and
over the past year by +61.61%.
Allegro Microsystems has received a consensus analysts rating of 4.64. Therefore, it is recommended to buy ALGM.
- StrongBuy: 8
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 54.4 | 8% |
P/E Forward = 51.5464
P/S = 10.034
P/B = 9.3545
Revenue TTM = 890.1m USD
EBIT TTM = 22.3m USD
EBITDA TTM = 89.9m USD
Long Term Debt = 285.7m USD (from longTermDebt, last quarter)
Short Term Debt = 1.53m USD (from shortTermDebt, last quarter)
Debt = 305.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 18.6m
Net Debt = 137.2m USD (calculated: Debt 305.9m - CCE 168.8m)
Enterprise Value = 9.07b USD (8.93b + Debt 305.9m - CCE 168.8m)
Interest Coverage Ratio = 0.76 (Ebit TTM 22.3m / Interest Expense TTM 29.3m)
EV/FCF = 72.61x (Enterprise Value 9.07b / FCF TTM 124.9m)
FCF Yield = 1.38% (FCF TTM 124.9m / Enterprise Value 9.07b)
FCF Margin = 14.03% (FCF TTM 124.9m / Revenue TTM 890.1m)
Net Margin = -1.67% (Net Income TTM -14.9m / Revenue TTM 890.1m)
Gross Margin = 46.30% ((Revenue TTM 890.1m - Cost of Revenue TTM 478.0m) / Revenue TTM)
Gross Margin QoQ = 47.06% (prev 46.73%)
Tobins Q-Ratio = 6.40 (Enterprise Value 9.07b / Total Assets 1.42b)
Interest Expense / Debt = 9.57% (Interest Expense 29.3m / Debt 305.9m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 17.6m (EBIT 22.3m * (1 - 21.00%))
Current Ratio = 3.45 (Total Current Assets 503.6m / Total Current Liabilities 145.9m)
Debt / Equity = 0.32 (Debt 305.9m / totalStockholderEquity, last quarter 956.4m)
Debt / EBITDA = 1.53 (Net Debt 137.2m / EBITDA 89.9m)
Debt / FCF = 1.10 (Net Debt 137.2m / FCF TTM 124.9m)
Total Stockholder Equity = 947.3m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.05% (Net Income -14.9m / Total Assets 1.42b)
RoE = -1.57% (Net Income TTM -14.9m / Total Stockholder Equity 947.3m)
RoCE = 1.81% (EBIT 22.3m / Capital Employed (Equity 947.3m + L.T.Debt 285.7m))
RoIC = 1.44% (NOPAT 17.6m / Invested Capital 1.23b)
WACC = 16.52% (E(8.93b)/V(9.24b) * Re(16.83%) + D(305.9m)/V(9.24b) * Rd(9.57%) * (1-Tc(0.21)))
Discount Rate = 16.83% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -42.22 | Cagr: -2.14%
[DCF] Terminal Value 56.01% ; FCFF base≈83.7m ; Y1≈96.0m ; Y5≈141.2m
[DCF] Fair Price = 3.87 (EV 858.1m - Net Debt 137.2m = Equity 720.9m / Shares 186.2m; r=16.52% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -86.65 | EPS CAGR: -57.08% | SUE: 0.17 | # QB: 0
Revenue Correlation: -74.15 | Revenue CAGR: -11.22% | SUE: 2.37 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.21 | Chg30d=+4.37% | Revisions=+40% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.24 | Chg30d=+1.33% | Revisions=+40% | Analysts=10
EPS current Year (2027-03-31): EPS=1.05 | Chg30d=+6.18% | Revisions=+33% | GrowthEPS=+93.6% | GrowthRev=+22.3%
EPS next Year (2028-03-31): EPS=1.47 | Chg30d=-4.15% | Revisions=+0% | GrowthEPS=+40.9% | GrowthRev=+13.9%
[Analyst] Revisions Ratio: +40%