Allegro MicroSystems (ALGM) AI Stock Analysis

• Market Cap: $5.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -7.23%
• EPS Growth: -15.69%
• Country: US
• Employees: 4,593
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.13
• Shares Outstanding: 185,040,480
• 10 Day Avg. Volume: 3,229,885
• 30 Day Avg. Volume: 2,284,748
• PEG Ratio: 0.43
• Price to Book (P/B): 5.02
• Price to Sales (P/S): 6.44
• P/FCF Ratio: 212.51
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 9.57
• Enterprise Value/Gross Profit: 20.96
• Enterprise Value/Ebitda: 110.17
• 1Y Price Target: $38.38
• Price Target Upside: 28.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 58 Neutral
• Price Target: $31.00 ▲(3.61% Upside)

Allegro MicroSystems' overall stock score is driven by strong earnings call results and technical indicators showing positive momentum. However, financial performance challenges and a poor valuation due to negative profitability weigh down the score.

Positive Factors

Automotive Segment Growth

The growth in automotive sales, particularly in e-mobility, indicates strong demand and positions Allegro well in the expanding electric vehicle market.

New Product Innovation

This innovation enhances Allegro's competitive edge in high-voltage power systems, crucial for electric vehicles and AI data centers, supporting long-term growth.

Strong Design Wins

Securing major design wins strengthens Allegro's market position and ensures a steady revenue stream from key sectors like automotive and data centers.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can hinder Allegro's ability to invest in R&D and innovation, impacting its competitive position over time.

Higher Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, affecting Allegro's financial health and investment capacity.

Challenges in Europe

Persistent challenges in the European market could limit Allegro's growth potential and diversification efforts, impacting overall revenue stability.

Allegro MicroSystems Business Overview & Revenue Model

Company Description

Allegro MicroSystems (ALGM) is a leading provider of semiconductor solutions specializing in power and sensing products for automotive and industrial applications. The company focuses on developing innovative technologies that enhance energy efficiency and performance, particularly in the rapidly evolving electric vehicle and automation sectors. Core products include magnetic sensors, power ICs, and integrated circuits that enable precise control and management of electronic systems.

How the Company Makes Money

Allegro MicroSystems generates revenue primarily through the sale of its semiconductor products to a diverse range of customers, including automotive manufacturers, industrial equipment makers, and consumer electronics companies. Key revenue streams include the sale of magnetic sensors and power management ICs, which are crucial for applications in electric vehicles and industrial automation. Additionally, Allegro benefits from long-term partnerships with prominent automotive and industrial firms, which provide stable demand for its products. The company's focus on research and development allows it to introduce innovative solutions that meet evolving market needs, thereby driving growth and profitability.

Allegro MicroSystems Financial Statement Overview

Summary

Allegro MicroSystems is facing financial headwinds with declining revenue and profitability impacting its income statement. The balance sheet shows a solid equity base but increased leverage. Cash flow generation remains a positive aspect, suggesting operational resilience despite recent challenges.

Income Statement

Allegro MicroSystems has experienced a decline in revenue and profitability in recent periods. The TTM data shows a negative EBIT and net income, indicating operational challenges. The gross profit margin remains moderate, but declining revenue growth and negative net profit margins are concerning.

Balance Sheet

The company maintains a reasonable equity position with a debt-to-equity ratio that is manageable, though it has increased compared to previous years. The return on equity has turned negative recently due to losses, but a solid equity ratio reflects potential for recovery.

Cash Flow

Cash flow remains a relative strength for Allegro MicroSystems, with positive operating cash flow and free cash flow in the TTM. However, cash flow growth has been inconsistent, and the free cash flow to net income ratio is elevated due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2020	Dec 2019
Income Statement
Total Revenue	595.57M	725.01M	1.05B	973.65M	650.09M	724.31M
Gross Profit	271.81M	321.53M	574.53M	546.08M	261.28M	319.82M
EBITDA	51.72M	9.17M	276.94M	264.49M	117.44M	160.61M
Net Income	-13.57M	-73.01M	152.70M	187.36M	36.97M	84.72M
Balance Sheet
Total Assets	1.38B	1.42B	1.53B	1.18B	817.82M	752.26M
Cash, Cash Equivalents and Short-Term Investments	117.49M	121.33M	212.14M	351.58M	214.49M	99.74M
Total Debt	287.69M	368.49M	275.21M	42.54M	85.70M	42.70M
Total Liabilities	438.50M	489.86M	398.89M	214.34M	183.69M	162.47M
Stockholders Equity	945.83M	929.55M	1.13B	965.63M	633.18M	588.98M
Cash Flow
Free Cash Flow	43.14M	21.96M	56.94M	113.43M	35.80M	22.79M
Operating Cash Flow	73.80M	61.91M	181.72M	193.21M	81.42M	121.09M
Investing Cash Flow	-30.34M	-40.82M	-516.72M	-99.70M	-41.68M	-97.52M
Financing Cash Flow	-96.63M	-112.06M	198.88M	-20.00M	82.50M	-39.74M

Allegro MicroSystems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGM, the sentiment is Neutral. The current price of 29.92 is above the 20-day moving average (MA) of 29.31, below the 50-day MA of 30.00, and above the 200-day MA of 27.86, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 39.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALGM.

Allegro MicroSystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRUS	―	$6.81B	20.77	18.53%	―	4.52%	18.89%
AMKR	―	$7.98B	26.01	7.27%	2.28%	0.13%	-16.17%
SMTC	―	$5.89B	287.42	11.57%	―	22.22%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SLAB	―	$4.30B	―	-9.71%	―	29.66%	47.97%
ALGM	―	$5.54B	―	-3.02%	―	-7.23%	-15.69%
SITM	―	$7.53B	―	-9.17%	―	65.12%	15.46%

Allegro MicroSystems Corporate Events

Allegro MicroSystems Reports Strong Q2 2026 Growth

Allegro MicroSystems, Inc. is a leading provider of power and sensing semiconductor solutions, primarily serving the automotive, clean energy, and industrial automation sectors. The company is known for its innovative ‘automotive grade’ technology that enhances efficiency and performance across various industries.

Allegro MicroSystems Holds Annual Shareholders Meeting

On August 7, 2025, Allegro MicroSystems held its Annual Meeting of Shareholders where three key proposals were addressed. Shareholders elected three directors, ratified the appointment of PricewaterhouseCoopers as the independent auditor for the fiscal year ending March 27, 2026, and approved the company’s executive compensation, reflecting continued support for the company’s strategic direction.

The most recent analyst rating on (ALGM) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Allegro MicroSystems stock, see the ALGM Stock Forecast page.

Allegro MicroSystems Reports Strong Q1 2026 Growth

Allegro MicroSystems, Inc. is a global leader in power and sensing semiconductor solutions, focusing on enhancing efficiency and sustainability in the automotive, clean energy, and industrial automation sectors. The company recently announced its financial results for the first quarter of 2026, showcasing a significant 22% increase in sales year-over-year, reaching $203 million. This growth was primarily driven by strong performances in the e-Mobility and Industrial sectors, which saw increases of 31% and 50%, respectively.

Allegro MicroSystems Exceeds Expectations in Q1 Earnings Call

Allegro MicroSystems’ recent earnings call presented a positive sentiment, with the company showcasing strong first-quarter results that exceeded expectations in both sales and gross margins. The automotive and industrial segments demonstrated robust growth, fueled by strategic design wins and innovative product releases. Despite some challenges such as mixed signals from the automotive market, competition, and geopolitical issues in China, the overall performance and strategic initiatives of Allegro MicroSystems were highlighted as outweighing these concerns.