ALGM Stock Analysis: Allegro Microsystems | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 6.902m USD | 12M Return: 16.7% | US01749D1054 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 99.0M
EPS Trend: -70.5%
Qual. Beats: -1
Rev. Trend: -53.9%
Qual. Beats: 6
Warnings
Tailwinds
No distinct edge detected
Seasonality 5.9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Allegro MicroSystems (ALGM) is a U.S.-based semiconductor company that designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs used in sensing, motion control, and power management functions within complex electromechanical or power conversion systems. The company is classified under the GICS Semiconductor Materials & Equipment sub-industry, a capital-intensive sector characterized by long product cycles, significant R&D investment, and exposure to cyclical end-market demand.
The companys product portfolio includes magnetic sensor ICs (position, speed, and current sensors) as well as power ICs such as motor drivers, regulators, power management ICs, LED drivers, and isolated gate drivers. These components are typically sold to original equipment manufacturers (OEMs) and distributors through a mix of direct sales, third-party distributors, independent sales representatives, and consignment channels.
Allegros primary end markets are automotive and industrial, with growing exposure to advanced industrial segments such as AI data centers, robotics, and energy infrastructure-areas driving elevated demand for high-efficiency power management and precision sensing. The company generates revenue across the United States, the rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. Founded in 1990, Allegro is headquartered in Manchester, New Hampshire, and went public on NASDAQ in October 2020.
- EV adoption accelerates magnetic sensor IC revenue growth
- AI data center power IC demand expands rapidly
- Greater China sales exposed to tariff and trade risks
| Net Income: 14.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 2.67 > 1.0 |
| NWC/Revenue: 39.20% < 20% (prev 42.86%; Δ -3.66% < -1%) |
| CFO/TA 0.09 > 3% & CFO 123.9m > Net Income 14.2m |
| Net Debt (142.0m) to EBITDA (103.9m): 1.37 < 3 |
| Current Ratio: 3.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (187.8m) vs 12m ago 1.72% < -2% |
| Gross Margin: 47.20% > 18% (prev 44.39%; Δ 2.80% > 0.5%) |
| Asset Turnover: 67.54% > 50% (prev 54.81%; Δ 12.72% > 0%) |
| Interest Coverage Ratio: 1.31 > 6 (EBIT TTM 35.6m / Interest Expense TTM 27.3m) |
| A: 0.26 (Total Current Assets 508.0m - Total Current Liabilities 137.2m) / Total Assets 1.41b |
| B: -0.04 (Retained Earnings -52.6m / Total Assets 1.41b) |
| C: 0.03 (EBIT TTM 35.6m / Avg Total Assets 1.40b) |
| D: 2.16 (Book Value of Equity 964.3m / Total Liabilities 446.0m) |
| Altman-Z'' = 4.04 = AA |
| DSRI: 1.10 (Receivables 122.2m/89.4m, Revenue 945.9m/761.5m) |
| GMI: 0.94 (GM 44.39% / 47.20%) |
| AQI: 0.94 (AQ_t 0.42 / AQ_t-1 0.44) |
| SGI: 1.24 (Revenue 945.9m / 761.5m) |
| TATA: -0.08 (NI 14.2m - CFO 123.9m) / TA 1.41b) |
| Beneish M = -2.87 (Cap -4..+1) = A |
As of October 15, 2026, the stock is trading at USD 32.22 with a total of 2,407,501 shares traded. Over the past week, the price has changed by -12.99%, over one month by -4.82%, over three months by -38.42% and over the past year by +16.70%.
Current recommended Stop Loss: 28.80 (which is 10.6% or 1.9 ATR below the current price).
Allegro Microsystems has no consensus analysts rating.
| Analysts Target Price | 54.4 | 68.9% |
P/E Trailing = 617.1667
P/E Forward = 35.8423
P/S = 7.297
P/B = 6.787
Revenue TTM = 945.9m USD
EBIT TTM = 35.6m USD
EBITDA TTM = 103.9m USD
Long Term Debt = 285.7m USD (from longTermDebt, last quarter)
Short Term Debt = 1.50m USD (from shortTermDebt, last quarter)
Debt = 304.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 16.8m
Net Debt = 142.0m USD (calculated: Debt 304.0m - CCE 162.0m)
Enterprise Value = 7.04b USD (6.90b + Debt 304.0m - CCE 162.0m)
Interest Coverage Ratio = 1.31 (Ebit TTM 35.6m / Interest Expense TTM 27.3m)
EV/FCF = 79.76x (Enterprise Value 7.04b / FCF TTM 88.3m)
FCF Yield = 1.25% (FCF TTM 88.3m / Enterprise Value 7.04b)
FCF Margin = 9.34% (FCF TTM 88.3m / Revenue TTM 945.9m)
Net Margin = 1.50% (Net Income TTM 14.2m / Revenue TTM 945.9m)
Gross Margin = 47.20% ((Revenue TTM 945.9m - Cost of Revenue TTM 499.5m) / Revenue TTM)
Gross Margin QoQ = 48.45% (prev 47.06%)
Tobins Q-Ratio = 4.99 (Enterprise Value 7.04b / Total Assets 1.41b)
Interest Expense / Debt = 8.98% (Interest Expense 27.3m / Debt 304.0m)
Taxrate = 8.64% (1.51m / 17.4m)
NOPAT = 32.6m (EBIT 35.6m * (1 - 8.64%))
Current Ratio = 3.70 (Total Current Assets 508.0m / Total Current Liabilities 137.2m)
Debt / Equity = 0.32 (Debt 304.0m / totalStockholderEquity, last quarter 964.3m)
Debt / EBITDA = 1.37 (Net Debt 142.0m / EBITDA 103.9m)
Debt / FCF = 1.61 (Net Debt 142.0m / FCF TTM 88.3m)
Total Stockholder Equity = 957.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.01% (Net Income 14.2m / Total Assets 1.41b)
RoE = 1.48% (Net Income TTM 14.2m / Total Stockholder Equity 957.7m)
RoCE = 2.87% (EBIT 35.6m / Capital Employed (Equity 957.7m + L.T.Debt 285.7m))
RoIC = 2.65% (NOPAT 32.6m / Invested Capital 1.23b)
WACC = 16.19% (E(6.90b)/V(7.21b) * Re(16.54%) + D(304.0m)/V(7.21b) * Rd(8.98%) * (1-Tc(0.09)))
Discount Rate = 16.54% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -59.34 | Cagr: -1.25%
[DCF] Terminal Value 56.75% ; FCFF base≈72.9m ; Y1≈83.6m ; Y5≈123.0m
[DCF] Fair Price = 3.35 (EV 766.3m - Net Debt 142.0m = Equity 624.4m / Shares 186.4m; r=16.19% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -70.54 | EPS CAGR: -39.20% | SUE: -2.83 | # QB: -1
Revenue Correlation: -53.91 | Revenue CAGR: -7.95% | SUE: 2.35 | # QB: 6
EPS current Quarter (2026-09-30): EPS=0.24 | Chg30d=-0.78% | Revisions=-12% | Analysts=12
EPS next Quarter (2026-12-31): EPS=0.26 | Chg30d=-0.91% | Revisions=+25% | Analysts=12
EPS current Year (2027-03-31): EPS=1.02 | Chg30d=-0.86% | Revisions=+46% | GrowthEPS=+88.7% | GrowthRev=+23.0%
EPS next Year (2028-03-31): EPS=1.48 | Chg30d=-1.41% | Revisions=+46% | GrowthEPS=+45.1% | GrowthRev=+17.0%
[Analyst] Revisions Ratio: +38% (up=24, down=10)