ALGM Stock Analysis: Allegro Microsystems | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 7.914m USD | 12M Return: 42.7% | US01749D1054 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 90.5M
EPS Trend: -70.5%
Qual. Beats: -1
Rev. Trend: -53.9%
Qual. Beats: 6
Warnings
Tailwinds
No distinct edge detected
Seasonality 5.8 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 (NASDAQ: ALGM) is a U.S.-headquartered semiconductor company that designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs used for sensing, motion control, and power management in complex electromechanical and power conversion systems. Founded in 1990 and based in Manchester, New Hampshire, the company listed on NASDAQ in October 2020 and is classified within the Information Technology sector (Semiconductor Materials & Equipment sub-industry).
Its product portfolio spans magnetic sensor ICs (for position, speed, and electric current sensing) and power ICs such as motor drivers, regulators, power management ICs, LED drivers, and isolated gate drivers. Allegro sells primarily to original equipment manufacturers and third-party distributors in the automotive and industrial markets, and is expanding into advanced applications including AI data centers, robotics, and energy infrastructure. The semiconductor industrys broader trends around vehicle electrification, advanced driver-assistance systems, and industrial automation have made sensor and power-management ICs increasingly critical components, and Allegro serves a global customer base across the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets.
- Automotive sensor demand recovers as EV content per vehicle expands
- AI data center power IC revenue scales into new high-margin segment
- Greater China pricing pressure and cyclical industrial weakness weigh on gross margins
| 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 (143.8m) to EBITDA (103.9m): 1.38 < 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: 0.89 (Receivables 98.7m/89.4m, Revenue 945.9m/761.5m) |
| GMI: 0.94 (GM 44.39% / 47.20%) |
| AQI: 0.96 (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 = -3.03 (Cap -4..+1) = AA |
As of August 16, 2026, the stock is trading at USD 44.39 with a total of 981,966 shares traded. Over the past week, the price has changed by +1.42%, over one month by -15.16%, over three months by -1.29% and over the past year by +42.73%.
Current recommended Stop Loss: 37.00 (which is 16.6% or 2.1 ATR below the current price).
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 | 22.5% |
P/E Trailing = 606.5
P/E Forward = 43.29
P/S = 8.6251
P/B = 8.2069
Revenue TTM = 945.9m USD
EBIT TTM = 35.6m USD
EBITDA TTM = 103.9m USD
Long Term Debt = 285.7m USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.50m USD (from shortTermDebt, last quarter)
Debt = 305.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 18.6m
Net Debt = 143.8m USD (calculated: Debt 305.8m - CCE 162.0m)
Enterprise Value = 8.06b USD (7.91b + Debt 305.8m - CCE 162.0m)
Interest Coverage Ratio = 1.31 (Ebit TTM 35.6m / Interest Expense TTM 27.3m)
EV/FCF = 91.23x (Enterprise Value 8.06b / FCF TTM 88.3m)
FCF Yield = 1.10% (FCF TTM 88.3m / Enterprise Value 8.06b)
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 = 5.71 (Enterprise Value 8.06b / Total Assets 1.41b)
Interest Expense / Debt = 8.92% (Interest Expense 27.3m / Debt 305.8m)
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 305.8m / totalStockholderEquity, last quarter 964.3m)
Debt / EBITDA = 1.38 (Net Debt 143.8m / EBITDA 103.9m)
Debt / FCF = 1.63 (Net Debt 143.8m / 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 = 15.92% (E(7.91b)/V(8.22b) * Re(16.22%) + D(305.8m)/V(8.22b) * Rd(8.92%) * (1-Tc(0.09)))
Discount Rate = 16.22% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -59.34 | Cagr: -1.25%
[DCF] Terminal Value 57.36% ; FCFF base≈72.9m ; Y1≈83.6m ; Y5≈123.0m
[DCF] Fair Price = 3.43 (EV 782.4m - Net Debt 143.8m = Equity 638.6m / Shares 186.4m; r=15.92% [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=-0.85% | Revisions=+25% | Analysts=11
EPS next Quarter (2026-12-31): EPS=0.27 | Chg30d=+3.82% | Revisions=+67% | Analysts=11
EPS current Year (2027-03-31): EPS=1.03 | Chg30d=+0.42% | Revisions=+0% | GrowthEPS=+90.8% | GrowthRev=+23.5%
EPS next Year (2028-03-31): EPS=1.50 | Chg30d=+0.79% | Revisions=+25% | GrowthEPS=+45.5% | GrowthRev=+17.2%
[Analyst] Revisions Ratio: +62% (up=9, down=1)