A Business at a Glance
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ALLEGRO MICROSYSTEMS, INC.
ALGM
$8.6B
Mkt Cap
$46.03
-8.07%
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a 5-year average return on invested capital (ROIC) of 15.1%. This indicates strong capital allocation and a potential competitive advantage.
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a market capitalization of $8.6B. It is classified as a mid-cap stock.
ALLEGRO MICROSYSTEMS, INC. (ALGM) does not currently pay a regular dividend.
ALLEGRO MICROSYSTEMS, INC. (ALGM) operates in the Semiconductors & Related Devices industry, within the Technology sector.
ALLEGRO MICROSYSTEMS, INC. (ALGM) reported annual revenue of $890 million in its most recent fiscal year, based on SEC EDGAR filings.
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a net profit margin of -1.7%. The company is currently unprofitable.
ALLEGRO MICROSYSTEMS, INC. (ALGM) generated $125 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Allegro MicroSystems is a fabless designer and developer of sensor integrated circuits and application-specific power ICs for automotive and industrial markets, with the broadest portfolio of magnetic sensor solutions and a leading global market share position. The company's core business model centers on designing sophisticated analog mixed-signal IC solutions incorporating patented intellectual property and proprietary process technologies, with products shipped to more than 10,000 customers worldwide at approximately 1.5 billion units annually. Allegro's sensor ICs enable precise measurement of motion, speed, position and current, while its power ICs include high-temperature and high-voltage motor drivers, power management ICs, LED driver ICs and isolated gate drivers, with solutions built on Hall-effect, magnetoresistive (xMR), and tunneling magnetoresistance (TMR) sensor technologies alongside Bipolar-CMOS-DMOS (BCD) power IC platforms. The company generates revenue through long-term customer relationships developed during multi-year product design collaborations, serving virtually all top automotive companies and leading industrial companies across automotive electrification and advanced driver assistance systems (ADAS), as well as clean energy, data center, robotics and automation applications. Allegro's competitive advantages derive from its embedded magnetic systems design expertise, application-optimized packaging, high-temperature operation capabilities, and differentiated technology that simplifies customer design efforts while increasing system reliability, positioning it to compete across target markets and expand into adjacent segments. The company operates globally with geographic diversification across China, rest of Asia, Japan, Americas and Europe, and maintains a portfolio of more than 1,500 products underpinned by decades of innovation in magnetic sensor IC technology and established incumbent supplier status in demanding automotive markets.
【Strong momentum across growth drivers】 Management expects continued strength in automotive e-mobility and ADAS applications, with focused auto sales increasing 30% year-over-year in fiscal 2026 and design wins up more than 30% year-over-year, providing confidence in forward-looking momentum. Data Center emerged as a significant growth pillar with record quarterly performance and expected continued expansion driven by fan proliferation into power supplies and network switching equipment, with current sensors for data centers identified as a meaningful new growth area expected to drive significant growth over the next several years. The company expects fiscal 2027 growth well above 20% and is advancing its power IC leadership through isolated gate drivers for silicon carbide transistors with expected 2x-3x dollar content uplift as customers migrate to 800-volt xEV platforms and higher power AI architectures. Management remains focused on gross margin expansion toward long-term targets through operating leverage, factory efficiencies, and gold-to-copper conversions, while continuing strategic investments in R&D and sales to drive above-market growth, with operating expenses expected to grow at approximately the rate of inflation going forward.
| Metric | Target | Period |
|---|---|---|
| Gross margin | 50%–51% | Q1 FY2027 |
| Operating expenses | $80 million ± $2 million | Q1 FY2027 |
| Non-GAAP EPS | $0.19–$0.23 per share | Q1 FY2027 |
| Sales | $230 million–$240 million | Q4 FY2026 |
| Gross margin | 49%–51% | Q4 FY2026 |
| Non-GAAP EPS | $0.14–$0.18 per share | Q4 FY2026 |
Gross margin (Q1 FY2027): “Gross margin to be between 50% and 51%.”
Operating expenses (Q1 FY2027): “Operating expenses are expected to decline sequentially to $80 million, ± $2 million.”
Non-GAAP EPS (Q1 FY2027): “we expect non-GAAP EPS to be between $0.19 and $0.23 per share.”
Sales (Q4 FY2026): “We expect fourth quarter sales to be in the range of $230 million-$240 million.”
Gross margin (Q4 FY2026): “Gross margin to be between 49% and 51%.”
Non-GAAP EPS (Q4 FY2026): “we expect non-GAAP EPS to be between $0.14 and $0.18 per share.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 890M | 890M | 725M | 1.0B | 974M | 769M |
| Net Income | -15M | -15M | -73M | 153M | 187M | 120M |
| EPS | $-0.08 | $-0.08 | $-0.39 | $0.78 | $0.97 | $0.62 |
| Free Cash Flow | 125M | 125M | 22M | 57M | 113M | 86M |
| ROIC | 1.4% | 1.7% | -1.7% | 17.0% | 32.3% | 26.1% |
| Gross Margin | 46.3% | 46.3% | 44.3% | 54.8% | 56.1% | 53.0% |
| Debt/Equity | 0.30 | 0.30 | 0.37 | 0.22 | 0.03 | 0.03 |
| Dividends/Share | $0.00 | - | - | - | $0.00 | $0.00 |
| Operating Income | 18M | 18M | -20M | 196M | 203M | 137M |
| Operating Margin | 2.1% | 2.1% | -2.7% | 18.7% | 20.9% | 17.8% |
| ROE | -1.6% | -1.6% | -7.1% | 14.6% | 22.1% | 18.1% |
| Shares Outstanding | 186M | 186M | 187M | 196M | 193M | 193M |
| Metric | ||||||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 650M | 591M | 769M | 974M | 1.0B | 725M | 890M | 890M |
| Gross Margin | 40.2% | 47.2% | 53.0% | 56.1% | 54.8% | 44.3% | 46.3% | 46.3% |
| R&D | 102M | 109M | 122M | 151M | 177M | 180M | 206M | 206M |
| SG&A | 106M | 153M | 149M | 192M | 188M | 162M | 181M | 181M |
| EBIT | 53M | 12M | 137M | 203M | 196M | -20M | 18M | 18M |
| Op. Margin | 8.1% | 2.1% | 17.8% | 20.9% | 18.7% | -2.7% | 2.1% | 2.1% |
| Net Income | 37M | 18M | 120M | 187M | 153M | -73M | -15M | -15M |
| Net Margin | 5.7% | 3.1% | 15.6% | 19.3% | 14.6% | -10.1% | -1.7% | -1.7% |
| Non-Recurring | 2.6M | 4.2M | 349K | -285K | 13M | 5.1M | 0 | 0 |
| Returns on Capital | ||||||||
| ROIC | 7.7% | 2.9% | 26.1% | 32.3% | 17.0% | -1.7% | 1.7% | 1.4% |
| ROE | 6.1% | 3.0% | 18.1% | 22.1% | 14.6% | -7.1% | -1.6% | -1.6% |
| ROA | 4.5% | 2.3% | 14.6% | 18.1% | 11.3% | -4.9% | -1.1% | -1.1% |
| Cash Flow | ||||||||
| Op. Cash Flow | 81M | 121M | 156M | 193M | 182M | 62M | 163M | 163M |
| Free Cash Flow | 36M | 80M | 86M | 113M | 57M | 22M | 125M | 125M |
| Owner Earnings | 16M | 22M | 74M | 81M | 68M | -44M | 48M | 48M |
| CapEx | 46M | 41M | 70M | 80M | 125M | 40M | 38M | 38M |
| Maint. CapEx | 64M | 48M | 49M | 51M | 71M | 65M | 68M | 68M |
| Growth CapEx | 0 | 0 | 21M | 29M | 53M | 0 | 0 | 0 |
| D&A | 64M | 48M | 49M | 51M | 71M | 65M | 68M | 68M |
| CapEx/OCF | N/A | 33.7% | 44.8% | 41.3% | 68.7% | 64.5% | N/A | 23.4% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 400M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | 8.2% | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 28M | 0 | 0 | 0 | 854M | 0 | 0 |
| Buyback Yield | N/A | 0.6% | N/A | N/A | N/A | 18.3% | 0.0% | 0.0% |
| Stock-Based Comp | 1.4M | 50M | 34M | 62M | 42M | 42M | 48M | 48M |
| Debt Repayment | 0 | 0 | 0 | 0 | 625K | 105M | 345M | 345M |
| Balance Sheet | ||||||||
| Net Debt | -171M | -172M | -257M | -327M | 41M | 225M | 119M | 119M |
| Cash & Equiv. | 214M | 197M | 282M | 352M | 212M | 121M | 169M | 169M |
| Long-Term Debt | 0 | 25M | 25M | 25M | 250M | 345M | 286M | 286M |
| Debt/Equity | 0.07 | 0.04 | 0.03 | 0.03 | 0.22 | 0.37 | 0.30 | 0.30 |
| Interest Coverage | 62.8 | 3.2 | 54.7 | 87.0 | 18.2 | -0.7 | 0.8 | 0.8 |
| Equity | 633M | 586M | 734M | 966M | 1.1B | 930M | 955M | 955M |
| Total Assets | 818M | 748M | 893M | 1.2B | 1.5B | 1.4B | 1.4B | 1.4B |
| Total Liabilities | 184M | 161M | 157M | 214M | 399M | 490M | 460M | 460M |
| Intangibles | 20M | 36M | 36M | 52M | 277M | 262M | 239M | 239M |
| Retained Earnings | 194M | 3.6M | 123M | 310M | 463M | -54M | -68M | -68M |
| Working Capital | 298M | 314M | 407M | 501M | 454M | 371M | 358M | 358M |
| Current Assets | 448M | 431M | 512M | 666M | 572M | 483M | 504M | 504M |
| Current Liabilities | 150M | 117M | 104M | 165M | 118M | 112M | 146M | 146M |
| Per Share Data | ||||||||
| EPS | 3.70 | 0.10 | 0.62 | 0.97 | 0.78 | -0.39 | -0.08 | -0.08 |
| Owner EPS | 1.59 | 0.12 | 0.38 | 0.42 | 0.35 | -0.24 | 0.26 | 0.26 |
| Book Value | 63.14 | 3.24 | 3.81 | 5.00 | 5.77 | 4.97 | 5.13 | 5.13 |
| Cash Flow/Share | 8.12 | 0.67 | 0.81 | 1.00 | 0.93 | 0.33 | 0.88 | 0.28 |
| Dividends/Share | 0.00 | 2.21 | 0.00 | 0.00 | N/A | N/A | N/A | 0.00 |
| Shares Out. | 10.0M | 181.0M | 192.8M | 193.3M | 195.8M | 187.2M | 186.2M | 186.2M |
| Valuation | ||||||||
| P/E Ratio | N/A | 252.7 | 46.6 | 46.5 | 34.6 | N/A | N/A | -575.4 |
| P/FCF | N/A | 57.3 | 64.6 | 76.8 | 92.7 | 211.9 | N/A | 68.6 |
| EV/EBIT | N/A | 362.1 | 36.9 | 39.5 | 26.0 | N/A | N/A | 470.1 |
| Price/Book | N/A | N/A | 7.6 | 9.0 | 4.7 | 5.0 | N/A | 9.0 |
| Price/Sales | N/A | 8.2 | 7.3 | 5.7 | 6.5 | 6.4 | N/A | 9.6 |
| FCF Yield | N/A | 1.7% | 1.6% | 1.3% | 1.1% | 0.5% | N/A | 1.5% |
| Market Cap | N/A | 4.6B | 5.6B | 8.7B | 5.3B | 4.7B | 0 | 8.6B |
| Avg. Price | N/A | 26.80 | 29.14 | 28.50 | 34.82 | 24.96 | 0.00 | 46.03 |
| Year-End Price | N/A | 25.27 | 28.87 | 45.08 | 26.96 | 24.86 | 0.00 | 46.03 |
ALLEGRO MICROSYSTEMS, INC. passes 3 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 70.4x vs a median of 70.7x. The company's 5-year average ROIC is 15.1% with a gross margin of 50.9%. At current prices, the estimated annualized return to fair value is -15.5%.
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a debt-to-equity ratio of 0.30. This indicates a conservatively financed balance sheet.
ALLEGRO MICROSYSTEMS, INC. (ALGM) reported earnings per share (EPS) of $-0.08 in its most recent fiscal year.
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a return on equity (ROE) of -1.6%. A negative ROE may indicate losses or negative equity.
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a 5-year average gross margin of 50.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 7 years of financial data for ALLEGRO MICROSYSTEMS, INC. (ALGM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ALLEGRO MICROSYSTEMS, INC. (ALGM) has a book value per share of $5.13, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strength in automotive e-mobility and ADAS applications, with focused auto sales increasing 30% year-over-year in fiscal 2026 and design wins up more than 30% year-over-year, providing confidence in forward-looking momentum. Data Center emerged as a significant growth pillar with record quarterly performance and expected continued expansion driven by fan proliferation into power supplies and network switching equipment, with current sensors for data centers identified as a meaningful new growth area expected to drive significant growth over the next several years. The company expects fiscal 2027 growth well above 20% and is advancing its power IC leadership through isolated gate drivers for silicon carbide transistors with expected 2x-3x dollar content uplift as customers migrate to 800-volt xEV platforms and higher power AI architectures. Management remains focused on gross margin expansion toward long-term targets through operating leverage, factory efficiencies, and gold-to-copper conversions, while continuing strategic investments in R&D and sales to drive above-market growth, with operating expenses expected to grow at approximately the rate of inflation going forward.
Based on recent SEC filings and earnings calls, ALLEGRO MICROSYSTEMS, INC. (ALGM) has provided the following forward guidance: Gross margin: 50%–51% (Q1 FY2027); Operating expenses: $80 million ± $2 million (Q1 FY2027); Non-GAAP EPS: $0.19–$0.23 per share (Q1 FY2027); Sales: $230 million–$240 million (Q4 FY2026); Gross margin: 49%–51% (Q4 FY2026), plus 1 additional metric.