Allegro MicroSystems, Inc. (ALGM) AI Stock Analysis

Allegro MicroSystems, Inc. designs, develops, and manufactures sensor integrated circuits (ICs) and application-specific analog power ICs tailored for motion control and energy-efficient systems. Its product line features magnetic sensor ICs for position, speed, and current sensing, alongside power ICs including motor drivers, regulators, and LED drivers. The company also supplies photonic and 3D sensing components like photodiodes, eye-safe lasers, and readout ICs for LiDAR applications. Serving OEMs and suppliers primarily across the automotive and industrial sectors, Allegro distributes globally across the United States, Europe, Japan, Greater China, South Korea, and other Asian regions.

Allegro's revenue expanded from $768.7M in FY2022 to $1.05B in FY2024, before falling 30.9% to $725.0M in FY2025 alongside an operating margin drop to -2.7% and net income of -$73.0M. Revenue rebounded 22.8% to $890.1M in FY2026, generating an operating margin of 4.8% and a net loss of -$14.9M. Across the 5-year period from FY2021 to FY2026, revenue posted a CAGR of 8.5%. For the trailing twelve months, revenue reached $945.9M with a 1.5% profit margin and an operating margin of 9.8%. In the latest quarter ended June 30, 2026, quarterly revenue grew 27.5% year-over-year, while quarterly earnings declined 48.5%.

As of June 30, 2026, Allegro held $162.0M in cash and short-term investments against $287.2M in total debt, resulting in net debt of $125.1M. Shareholders' equity was $964.3M against total assets of $1.41B, yielding a debt-to-equity ratio of 0.30 and a current ratio of 3.70. Operating cash flow improved to $163.1M in FY2026, funding $38.2M in capital expenditures and generating $124.9M in free cash flow. In FY2026, the company deployed $1.7M toward share buybacks, and its share count decreased by 2.2% over five years.

At a share price of $31.62 and a market capitalization of $5.89B, Allegro trades at a trailing P/E of 527.0x and a forward P/E of 35.8x, compared to medians of 28.1x and 18.8x for US-listed Technology peers. Its enterprise value stands at $6.69B, with an EV/EBITDA of 66.3x and a price-to-sales ratio of 6.2x, also above peer medians of 16.6x and 2.8x, respectively. The stock gained 7.8% over the past year and 19.9% year-to-date, trailing the S&P 500's 1-year return of 16.8%. Over a 5-year span, the stock returned 0.9%, compared to 83.0% for the S&P 500.

Wall Street coverage includes 9 Strong Buy, 3 Buy, and 1 Hold ratings, with no Sell recommendations. The mean price target of $54.42 indicates an upside potential of 72.1% from the last close of $31.62. For the current fiscal year ending March 31, 2027, consensus estimates forecast revenue of $1.09B and an EPS of $1.02, representing 88.7% EPS growth. For the following fiscal year, 12 analysts project revenue of $1.28B and EPS of $1.48. Allegro beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Allegro MicroSystems, Inc. (ALGM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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