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Allegro MicroSystems, Inc.

Rank #223HypergrowthWatchlistCompare with other stocks

ALGM · Nasdaq · Technology

Allegro MicroSystems, Inc. (ALGM) — Rank #223 by gross profitability (GP/assets 0.29) · ROE -1.5% · Piotroski F-Score 7 / 9.

As-of 2026-10-30 · CIK 0000866291 · all metrics point-in-time as of the filing date.

About

Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs for sensing, motion control, and power management functions of complex electromechanical or power conversion systems.

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Its products include magnetic sensor ICs, such as position, speed, and electric current sensor ICs; and power ICs comprising motor driver ICs, such as regulator, power management ICs, and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. The company serves automotive and industrial markets, including advanced industrial markets such as AI data centers, robotics, and energy infrastructure sectors. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets.

The company was founded in 1990 and is headquartered in Manchester, New Hampshire.

Industry
Semiconductors
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
March 31

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

4,250

Industry

Semiconductors

Exchange

Nasdaq

12/12

Flags passed

ALGM passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.29
Return on equity
-1.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.46
Current ratio
3.70×
Net cash
-$125.13M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
5.4%

Growth

2/2 pass
Revenue growth
22.8%
Piotroski F-Score
7 / 9
Share dilution
-1.4%

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 45th percentile of 21 SIC 3674 peers

Gross profitability (GP / assets)

0.29

Primary signal (Novy-Marx).

45th pctl of 21 SIC 3674 peers

Return on equity

-1.5%

Gross margin

46.3%

25th pctl of 21 SIC 3674 peers

Revenue growth (YoY)

22.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-2.9%

Revenue CAGR (5Y)

8.5%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

3.3%

Cash Flow Health

Is the cash real?

No warning flags · FCF 938% above net income

Free cash flow

$124.89M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

938.4%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $125.13M, F-Score 7/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.46

53rd pctl of 20 SIC 3674 peers (best = lowest)

Current ratio

3.70×

70th pctl of 21 SIC 3674 peers

Quick ratio

1.90×

Net cash

-$125.13M

Cash & equivalents minus total debt.

Piotroski F-Score

7 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.7 / 5

Good
Share count trend(net buybacks)
-1.4%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
7.5%5/5 Strong

Lifecycle Phase History

20212026
Decline
Hypergrowth
Value

Price History

ALGM+2.4% · +0.5% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports