Allegro Microsystems Inc (ALGM)
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symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
The business carries its own weight: documented leadership in magnetic sensor ICs, $163.1 million of operating cash flow in fiscal 2026, $954.7 million of equity against a $285.0 million term loan with no amortization obligation until October 2030 and an undrawn $256.0 million revolver — there is no sign of a threat to the company itself. What remains open is a clearly operational question, and it carries weight: two consecutive fiscal years ended in a loss, and the recovered operating income of $18.5 million covers only 84 percent of the $22.1 million interest expense. The reason that does not amount to a solvency issue lies in the cash account rather than the income statement: against that interest stands $163.1 million of operating cash flow. On top of it sits dependence on a single end market for 70.6 percent of revenue. That is not documented quality, but it is not a substance finding either — hence yellow. The decision is yours.
symbol.quality_note
Chips from Allegro MicroSystems sit inside almost every new car on the road: tiny magnetic sensors that tell the steering, the brakes and the electric motor exactly where they are. In fiscal 2026 revenue rose 22.8 percent to $890.1 million and gross margin recovered from 44.3 to 46.3 percent — and the company still ended the year $14.9 million in the red. Automotive suppliers account for 70.6 percent of sales, the celebrated data center business was 14 percent of a single quarter, and Japan's Sanken Electric still holds 59,732,782 shares. We read the filings in the order they were submitted — and look for the line where recovery ends and expectation begins.
Read the analysis
Stock Watch
This analysis is as of July 26, 2026. Stock Watch will tell you what's changed at ALGM since then.
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Appears in These Scanners
This stock currently matches 23 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 41.50 $ — 40% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
AI Rating
Sells AIAllegro verkauft Sensor- und Leistungs-ICs ausdrücklich in KI-Rechenzentren (Kühlung und Stromversorgung); der Geschäftsbericht für das Geschäftsjahr 2026 benennt Rechenzentrumsumsatz als wachsenden Anteil am Konzernumsatz, die Ergebnismitteilung vom 07.05.2026 nennt einen Rekordanteil von 14 Prozent am Umsatz des vierten Quartals.
View the full file — quotes, sources, reviewed filings
„The emergence of AI data centers is driving increased demand for our sensor and power ICs in both cooling and power supply applications. Our motor drivers are widely used in data center cooling systems, including fans and pumps, to provide air or liquid cooling of digital processors, power supplies, or network switches."
Das Aufkommen von KI-Rechenzentren treibt die Nachfrage nach unseren Sensor- und Leistungs-ICs sowohl in Kühl- als auch in Stromversorgungsanwendungen. Unsere Motortreiber werden vielfach in Rechenzentrums-Kühlsystemen eingesetzt, darunter Lüfter und Pumpen, um digitale Prozessoren, Netzteile oder Netzwerk-Switches mit Luft oder Flüssigkeit zu kühlen.
„This momentum is reflected in our fiscal year 2026 performance, as data center sales represented an increasing percentage of our total revenue. Both motor drivers and current sensors contributed to fiscal year 2026 sales, while IGDs are being sampled and tested by customers for the next generation of data centers."
Diese Dynamik spiegelt sich in unserem Geschäftsjahr 2026 wider: Der Rechenzentrumsumsatz machte einen steigenden Anteil an unserem Gesamtumsatz aus. Sowohl Motortreiber als auch Stromsensoren trugen zum Umsatz des Geschäftsjahres 2026 bei, während isolierte Gate-Treiber derzeit von Kunden für die nächste Generation von Rechenzentren bemustert und getestet werden.
„Additionally, our products may be used in AI infrastructure, including data centers, robotics and factory automation, and our ability to capitalize on this trend is subject to significant risks and uncertainties."
Darüber hinaus können unsere Produkte in KI-Infrastruktur eingesetzt werden, darunter Rechenzentren, Robotik und Fabrikautomation; unsere Fähigkeit, aus diesem Trend Nutzen zu ziehen, unterliegt erheblichen Risiken und Unsicherheiten.
Filings Reviewed: 10-K 2026-05-21 · 10-Q 2026-01-30 · 10-Q 2025-10-31 · 10-Q 2025-08-01 · 10-K 2025-05-22 · 10-Q 2025-01-31
Rated on July 26, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 31.0% above the current price.
- Consensus
- Strong Sell
- Analyst Ratings
- 11
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 03/31/2027 | 1.03 | 0.97 – 1.14 | 1,099 | 90.8% | 11 |
| 03/31/2028 | 1.50 | 1.32 – 1.76 | 1,289 | 45.5% | 11 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.04 | -121.80 | 178 | -30.20 | -3.90 | -8 | -22 |
| 2025: Q1 | -0.08 | – | 193 | -19.90 | -7.70 | 20 | 15 |
| 2025: Q2 | -0.07 | – | 203 | 21.90 | -6.50 | 62 | 51 |
| 2025: Q3 | 0.03 | – | 214 | 14.40 | 3.00 | 20 | 14 |
| 2025: Q4 | 0.04 | – | 229 | 28.90 | 3.60 | 45 | 41 |
| 2026: Q1 | -0.09 | – | 243 | 26.10 | -6.80 | 36 | 19 |
| 2026: Q2 | 0.08 | 214.30 | 259 | 27.40 | 6.10 | 22 | 14 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2019 | 724 | 100 | 85 | 0.45 | 121 | 589 | 752 |
| 2020 | 650 | 53 | 37 | 0.20 | 81 | 633 | 818 |
| 2021 | 591 | 12 | 18 | 0.09 | 121 | 586 | 748 |
| 2022 | 769 | 137 | 119 | 0.62 | 156 | 734 | 893 |
| 2023 | 974 | 203 | 187 | 0.97 | 193 | 966 | 1,181 |
| 2024 | 1,049 | 196 | 153 | 0.78 | 182 | 1,132 | 1,531 |
| 2025 | 725 | -20 | -73 | -0.39 | 62 | 930 | 1,421 |
| 2026 | 890 | 43 | -15 | -0.08 | 163 | 956 | 1,416 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
In its fiscal 2026 annual report Allegro describes itself as the world's leading supplier of magnetic sensor ICs by market share: more than 1,500 products, roughly 2.1 billion units shipped a year, more than 15,000 customers and about 1,860 active patents as of March 27, 2026. Its customer base includes virtually all major global automotive manufacturers and leading tier-one suppliers.
A second consecutive loss year: minus $14.9 million in fiscal 2026 after minus $73.0 million, both attributable to Allegro shareholders. Operating income of $18.5 million does not cover the $22.1 million interest expense, and revenue sits 15.2 percent below the record fiscal 2024, a year that still produced $152.7 million of profit.
Operating cash flow rose in fiscal 2026 to $163.1 million and free cash flow to $124.9 million. As of March 27, 2026 the company held $168.8 million of cash and $954.7 million of equity against a $285.0 million term loan at Term SOFR plus 1.75 percent, not due until October 31, 2030 and free of scheduled amortization, plus an undrawn $256.0 million revolving facility.
In fiscal 2026, suppliers to the automotive industry accounted for 70.6 percent of revenue and customers outside the United States for 89.7 percent, including $249.4 million from Greater China. Wafers come from four contract foundries, two of them in Taiwan; assembly runs largely through the company plant in the Philippines, for which the annual report notes a declared state of energy emergency.
Sanken Electric held 59,732,782 shares, or 32.1 percent, as of the record date of the proxy statement dated June 24, 2026 and may designate directors under the stockholders agreement dated July 23, 2024 — most recently on June 17, 2026. The annual report itself warns about the price impact of large sales. ON Semiconductor's $35.10 acquisition proposal was withdrawn on April 14, 2025.
At the July 24, 2026 closing price of $46.03, market capitalization stood at roughly $8.58 billion — about 9.6 times sales and 9.0 times book for a company with no reported annual profit. In the record fiscal 2024 the same market value would have equalled 8.2 times sales.
Allegro is the catch-up trap in its purest form: everything that improved really did improve — revenue up 22.8 percent to $890.1 million in fiscal 2026, gross margin from 44.3 to 46.3 percent, free cash flow from $22.0 million to $124.9 million, operating income back in the black. And everything that is still missing is still missing: revenue sits 15.2 percent below the record fiscal 2024, the bottom line marks a second consecutive loss year, and $18.5 million of operating income does not reach the $22.1 million interest line. Add 70.6 percent of revenue riding on cars, a shareholder holding 32.1 percent, and a valuation of roughly 9.6 times sales. Not investment advice.
- Allegro reached our research list through our in-house stock scanner: rank 22 of 28 in the list "Richard Moglen: 1 Week Top Performers" (U.S. selection) with a relative strength rating of 92, as of July 25, 2026. The list is recalculated daily; it measures four-day price momentum, liquidity and relative strength — that is, demand for the shares, not the quality of the business.
- Every figure carries its own reporting date: annual figures from the annual report on Form 10-K for fiscal 2026 (period ended March 27, 2026, filed May 21, 2026), quarterly and adjusted figures from the current report on Form 8-K dated May 7, 2026, ownership from the proxy statement on Form DEF 14A dated June 24, 2026, share count from the annual report cover page (May 18, 2026). Valuation metrics as of July 25, 2026 on the closing price of July 24, 2026 — meant to be evergreen, with no daily quote used as an argument.
- Room for confusion: the ticker ALGM belongs to Allegro MicroSystems, Inc. of Manchester, New Hampshire (CIK 0000866291), not to its Japanese major shareholder Sanken Electric Co., Ltd. and not to contract foundry Polar Semiconductor, in which Allegro holds about 10.2 percent. The fiscal year ends on the last Friday in March: "fiscal 2026" maps largely onto calendar year 2025.
About the Company
Allegro MicroSystems, Inc. entwirft, entwickelt, fertigt und vermarktet mit ihren Tochtergesellschaften sensorintegrierte Schaltkreise (ICs) und anwendungsspezifische Leistungs-ICs für Sensing-, Bewegungssteuerungs- und Energiemanagementfunktionen komplexer elektromechanischer oder Stromumwandlungssysteme.
| Employees | 4,250 |
|---|---|
| Headquarters | Manchester, NH |
| Address | 955 Perimeter Road, 03103 Manchester, United States |
| Phone | 603 626 2300 |
| Website | allegromicro.com |
| IPO Date | 29. Oct 2020 |
| ISIN | US01749D1054 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Michael C. Doogue | President, CEO & Director | 1976 |
| Derek P. D'Antilio | Executive VP, CFO & Treasurer | 1973 |
| Sharon S. Briansky | Senior VP, General Counsel & Corporate Secretary | 1974 |
| Richard A. Madormo | Senior Vice President of Worldwide Sales | 1968 |
| Troy T. Coleman | Senior VP & GM of Products | 1976 |
| Ian Kent | Senior Vice President of Operations | 1968 |
| Roald G. Webster | VP & Chief Accounting Officer | 1978 |
| Jamie Haas | VP & CTO | – |
| Jalene A. Hoover CPA | Vice President of IR & Corporate Communications | – |
| Erin E. Hagen | Senior VP & Chief Human Resources Officer | 1977 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.