Quality Investor

Allegro MicroSystems, Inc.

Rank #231Hypergrowth

ALGM · Nasdaq · Technology

Allegro MicroSystems, Inc. (ALGM) — Rank #231 by gross profitability (GP/assets 0.29) · ROE -1.5% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · 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

Price History

ALGM+16.9% · +3.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$6.17B

P/E (annual)

P/S (annual)

6.9

P/B

6.4

P/OCF (annual)

37.8

Shareholder Yield

1.4%

Employees

4,250

Industry

Semiconductors

Exchange

Nasdaq

Signal Flags

1 green
Revenue growth acceleratingGrowth rate increasing year over year

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%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

19.9%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.4% — per-share value needs a total required return of 18.5% once share-count change is priced in.

vs. own 6-year median revenue growth: 15.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

14.9%

r = 10% (base)

19.9%

r = 12%

24.3%

Net debt / market cap: 2.0%

Base FCF: $124.9M3Y mean FCF: $67.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
6.5xmed 38.6x239.9x

P / S

Price / revenue per share

9.3xExpensive
0.4xmed 6.7x9.3x

P / B

Price / book value per share

8.7xExpensive
0.4xmed 6.0x8.7x

P / GP

Price / gross profit per share

20.1xExpensive
0.9xmed 13.3x20.1x

P / FCF

Price / free cash flow per share

66.2xFair
6.7xmed 64.2x221.5x

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

Profitability

Gross profitability (GP / assets)

0.29

Primary signal (Novy-Marx).

11th of 17 SIC 3674 peers

Return on equity

-1.5%

Gross margin

46.3%

13th of 17 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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.46

9th of 16 SIC 3674 peers (best = lowest)

Current ratio

3.70×

7th of 17 SIC 3674 peers

Quick ratio

1.90×

Net cash

-$125.13M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$124.89M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

9.38

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.4%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Decline
Hypergrowth
Value