Want to see ALGM full AI Analyst Report?
Top Page
Allegro MicroSystems
(NASDAQ:ALGM)
Select Model
Select Model
Rating:51Neutral
Price Target:
$36.00
▼(-3.85% Downside)
Action:Reiterated
Date:08/29/26
The score is mainly driven by improving but still incomplete financial recovery (better revenue/operating results and positive cash generation, but weak net profitability and declining free cash flow) and clearly weak technicals (below major moving averages with negative MACD). Valuation is a headwind due to the very high P/E, partially offset by modestly positive governance-related corporate events.
Positive Factors
Revenue recovery and growth
The rebound in revenue indicates improving demand after the 2025 downturn and provides a stronger base for operating leverage. Continued growth across automotive and industrial applications could support a durable recovery if product adoption remains healthy.
Negative Factors
Profitability remains weak
The recovery has not yet restored historical profitability, with gross margin below prior-cycle levels and bottom-line losses persisting. Weak earnings conversion leaves results sensitive to product mix, pricing, volume and operating-cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and growth
The rebound in revenue indicates improving demand after the 2025 downturn and provides a stronger base for operating leverage. Continued growth across automotive and industrial applications could support a durable recovery if product adoption remains healthy.
Read all positive factors
Allegro MicroSystems (ALGM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.76B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)437.9
Beta (1Y)1.91
Revenue Growth24.22%
EPS GrowthN/A
CountryUS
Employees4,250
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.08
Shares Outstanding186,402,040
10 Day Avg. Volume2,179,197
30 Day Avg. Volume2,210,467
Financial Highlights & Ratios
PEG Ratio4.71
Price to Book (P/B)5.84
Price to Sales (P/S)6.27
P/FCF Ratio44.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$53.29Price Target Upside42.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.03
Revenue Forecast (FY)$1.10B
Allegro MicroSystems Business Overview & Revenue Model
Company Description
Allegro MicroSystems, Inc. focuses on the creation, production, and worldwide distribution of sophisticated integrated circuits (ICs). Their primary offerings consist of sensor ICs and custom-designed analog power ICs, developed mainly for motion ...
How the Company Makes Money
Allegro makes money primarily by selling its semiconductor integrated circuits (ICs) to original equipment manufacturers (OEMs) and to automotive and industrial tier suppliers that incorporate these chips into end products and subsystems. Revenue ...
Allegro MicroSystems Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operating momentum: broad-based revenue growth (23% FY), expanding design wins and backlog, record free cash flow, and margin improvement despite commodity headwinds. Management acknowledged cost pressures (notably gold, fuel/freight) and seasonality-driven effects in China and pricing negotiations, and some new product revenue is back-end loaded. On balance, the scale and durability of revenue, margin progress, and cash generation outweigh the manageable near-term headwinds.Positive Updates
Consistent Revenue and EPS Growth
Q4 sales of $243M (5th consecutive quarter of sales growth), Q4 non-GAAP EPS $0.17 (nearly 3x YoY). Fiscal 2026 sales $890M, up 23% YoY; FY26 non-GAAP EPS $0.54, more than doubled YoY.
Negative Updates
Commodity and Cost Headwinds
Cost of gold was an ~200 bps headwind to gross margin in FY26; recent increases in fuel and freight have also pressured costs. Management indicated selective price increases will begin end of Q1 to offset some costs.
Read all updates
Q4-2026 Updates
Positive
Negative
Consistent Revenue and EPS Growth
Q4 sales of $243M (5th consecutive quarter of sales growth), Q4 non-GAAP EPS $0.17 (nearly 3x YoY). Fiscal 2026 sales $890M, up 23% YoY; FY26 non-GAAP EPS $0.54, more than doubled YoY.
Read all positive updates
Company Guidance
For Q1 FY2027 Allegro guided non‑GAAP sales of $245–$255 million (midpoint ≈ 23% year‑over‑year growth), non‑GAAP gross margin of 50–51% (management noted drop‑through into Q1 is closer to ~70%), operating expenses of $80 million ± $2 million (a sequential decline), interest expense of about $4 million, a non‑GAAP tax rate of ~9% and a weighted average diluted share count of ~187 million, implying non‑GAAP EPS of $0.19–$0.23; management also said these results assume continued strategic R&D and sales investments funded largely through reallocation and process efficiencies, with data center strength and a modest auto uptick supporting the outlook.Allegro MicroSystems Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 945.93M | 890.10M | 725.01M | 1.05B | 973.65M | 768.67M |
| Gross Profit | 446.44M | 412.64M | 321.53M | 574.53M | 546.08M | 407.46M |
| EBITDA | 103.88M | 86.08M | 9.17M | 276.94M | 264.49M | 191.77M |
| Net Income | 14.20M | -14.90M | -73.01M | 152.70M | 187.36M | 119.41M |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.42B | 1.42B | 1.53B | 1.18B | 892.62M |
| Cash, Cash Equivalents and Short-Term Investments | 162.03M | 168.75M | 121.33M | 212.14M | 351.58M | 282.38M |
| Total Debt | 287.16M | 287.28M | 368.49M | 275.21M | 42.54M | 41.45M |
| Total Liabilities | 446.00M | 459.73M | 489.86M | 398.89M | 214.34M | 157.26M |
| Stockholders Equity | 964.28M | 956.45M | 929.55M | 1.13B | 965.63M | 734.21M |
Cash Flow | ||||||
| Free Cash Flow | 88.32M | 124.89M | 21.96M | 56.94M | 113.43M | 86.19M |
| Operating Cash Flow | 123.91M | 163.07M | 61.91M | 181.72M | 193.21M | 156.13M |
| Investing Cash Flow | -39.13M | -41.72M | -40.82M | -516.72M | -99.70M | -66.27M |
| Financing Cash Flow | -51.18M | -77.38M | -112.06M | 198.88M | -20.00M | -5.31M |
Allegro MicroSystems Technical Analysis
Negative
37.44
Price Trends
47.33
Negative
46.73
Negative
39.20
Negative
Market Momentum
-2.83
Positive
35.59
Neutral
14.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGM, the sentiment is Negative. The current price of 37.44 is below the 20-day moving average (MA) of 40.14, below the 50-day MA of 47.33, and below the 200-day MA of 39.20, indicating a bearish trend. The MACD of -2.83 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 14.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGM.
Allegro MicroSystems Risk Analysis
Allegro MicroSystems disclosed 40 risk factors in its most recent earnings report. Allegro MicroSystems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allegro MicroSystems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.49B | 12.91 | 20.35% | ― | 6.25% | 27.52% | |
68 Neutral | $12.41B | 79.81 | -5.93% | ― | 17.84% | 464.80% | |
65 Neutral | $7.31B | -185.46 | -3.59% | ― | 21.71% | 63.22% | |
62 Neutral | $17.00B | 1,042.92 | 1.27% | ― | 83.03% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $11.75B | 20.42 | 12.37% | 0.51% | 17.93% | 82.27% | |
51 Neutral | $6.76B | 437.90 | 1.48% | ― | 24.22% | ― |
* Technology Sector Average
ALGM
Allegro MicroSystems
35.47
4.97
16.30%
AMKR
Amkor
45.73
22.03
92.99%
CRUS
Cirrus Logic
109.07
-4.12
-3.64%
SMTC
Semtech
132.27
74.51
129.00%
SLAB
Silicon Laboratories
219.12
88.83
68.18%
SITM
SiTime Corporation
552.75
319.92
137.40%
Allegro MicroSystems Corporate Events
Executive/Board ChangesShareholder Meetings
Allegro MicroSystems Shareholders Back Governance and Board Slate
Positive
Aug 7, 2026
On August 5, 2026, Allegro MicroSystems, Inc. held its Annual Meeting of Shareholders, where investors voted on director elections, auditor ratification and executive compensation. Shareholders elected Jennie M. Raubacher, Brian C. White and Rober...
Business Operations and StrategyExecutive/Board Changes
Allegro MicroSystems Appoints Brian White to Board
Positive
Jun 18, 2026
On June 17, 2026, Allegro MicroSystems expanded its board to 11 members and appointed veteran semiconductor executive Brian C. White as an independent Class III director, with a term running until the 2026 annual meeting of shareholders. The board...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.