Allegro Microsystems Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
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.
Why this colour
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.
What the thesis turns on
Assessment: Opportunities & Risks
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.
Market position and technology
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.
Earning power
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.
Cash flow and balance sheet
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.
Concentration and supply chain risk
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.
Ownership structure
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.
Valuation
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.
Worth Noting
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.
Stock Watch
This analysis is as of August 29, 2026. Stock Watch will tell you what's changed at ALGM since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 22.80 $ to 69.60 $ · Last price: 33.10 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
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.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Semiconductors
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Allegro Microsystems Inc ALGM | 6.8 | – | 62.8 | 47.4 | 10.4 | 22.8 | 7.7 |
| NVIDIA Corporation NVDA | 5,540.3 | 30.4 | 22.4 | 74.7 | 65.6 | 65.5 | 29.1 |
| Broadcom Inc AVGO | 1,652.3 | 55.2 | 33.7 | 75.5 | 49.0 | 23.9 | 1.1 |
| Micron Technology Inc MU | 1,269.8 | 20.7 | 15.8 | 72.6 | 80.4 | 48.9 | 512.0 |
| Advanced Micro Devices Inc AMD | 943.2 | 177.7 | 77.8 | 55.7 | 14.4 | 34.3 | 242.5 |
| Intel Corporation INTC | 546.8 | – | 145.4 | 38.9 | 6.9 | -0.5 | 337.0 |
| Arm Holdings plc ARM | 282.9 | 267.6 | 221.2 | 97.5 | 7.6 | 22.8 | 58.6 |
| Texas Instruments Incorporated TXN | 234.9 | 39.7 | 26.1 | 58.3 | 37.8 | 13.1 | 46.9 |
| Marvell Technology Group Ltd MRVL | 232.5 | 79.7 | 45.0 | 52.2 | 14.5 | 42.1 | 239.9 |
| Median of companies shown | 546.8 | 55.2 | 45.0 | 58.3 | 14.5 | 23.9 | 58.6 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
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.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($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 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| 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 |
What Do These Terms Mean?
- 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.
Screening
Appears in These Scanners
This stock currently matches 25 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
- 21-EMA Trend
- Above the 50- & 200-SMA
- CANSLIM Type RS
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- High ADR (≥5%)
- Mark Minervini: Trend Criteria — 1 Month
- Mike Webster: Swing Trading List
- Near 52-Week High
- Oliver Kell: Doublers
- Oliver Kell: Strength on Down Day
- Qullamaggie: Trend Intensity (13/65)
- RS Leader (≥90)
- RS New Highs
- Richard Moglen: 1 Week Top Performers
- Richard Moglen: Top Performers 3/6 Month
- Stage 2 Leader
- Stan Weinstein: Checklist
- Stan Weinstein: Stage 2
Research
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
Outlook
Analysts & Price Target
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.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 03/31/2027 | 1.02 | 0.97 – 1.09 | 1,095 | 88.5% | 11 |
| 03/31/2028 | 1.48 | 1.32 – 1.68 | 1,280 | 45.0% | 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.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 26.3% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $88.3M |
|---|---|
| Market cap | $6.84B |
| Free cash flow in year ten | $911.1M |
| Terminal value as a share of market value | 70.2% |
For comparison: over the past five years free cash flow grew by 9.3% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Allegro 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.
10-K · 2026-05-21 · View SEC filing
„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.
10-K · 2026-05-21 · View SEC filing
„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.
10-K · 2026-05-21 · View SEC filing
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
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -3.0%
- More than 10% revenue growth is expected for the coming year 13.8%
- Share count grows by less than 3% a year -1.5%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 36.8%
- Gross margin at 40% or higher and without meaningful erosion 46.4%
- Goodwill from acquisitions does not grow faster than revenue 14.4%
- Net debt below twice EBITDA 1.4 x EBITDA
- Operating cash flow covers the profits of the last three years 342 m
- Return on capital at 15% or higher, or up versus two years ago 3.4%
- Insiders hold at least 10% or are net buyers 33.0%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
4/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 3.0%
- Exp. sales growth 3Y > 5% 19.9%
- EBIT growth 10Y > 5% -11.4%
- Exp. EBIT growth 3Y > 5% 19.9%
- Net debt < 4x EBIT 2.8x
- EBIT positive, 10Y straight 7
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% -2.9%
- ROCE > 15% 3.4%
- Expected return > 10% 22.1%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Aug 17, 2026 | Raubacher Jennie | Director | Sell | 1,000 | 45.32 | 45,320 |
| Aug 10, 2026 | Hagen Erin | SVP, CHRO | Sell | 2,285 | 44.39 | 101,431 |
| Aug 5, 2026 | Suzuki Yoshihiro | Director | Other | 4,251 | 0.00 | – |
| Aug 5, 2026 | Martin Joseph R | Director | Other | 4,251 | 0.00 | – |
| Aug 5, 2026 | Puma Mary G | Director | Other | 4,251 | 0.00 | – |
| Aug 5, 2026 | Palepu Krishna G. | Director | Other | 4,251 | 0.00 | – |
The company
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
- 10/29/2020
- 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.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
Data as of: September 17, 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.