Allegro MicroSystems (ALGM) AI Stock Analysis

• Market Cap: $5.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -18.82%
• EPS Growth: -195.20%
• Country: US
• Employees: 4,593
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 0.09
• Shares Outstanding: 185,040,480
• 10 Day Avg. Volume: 1,419,302
• 30 Day Avg. Volume: 1,688,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 8.54
• Enterprise Value/Gross Profit: 19.25
• Enterprise Value/Ebitda: 394.52
• 1Y Price Target: $38.70
• Price Target Upside: 26.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 53 Neutral
• Price Target: $31.00 ▲(1.64% Upside)

Allegro MicroSystems' overall stock score is driven by financial challenges and a bearish technical outlook, offset by a positive earnings call highlighting strategic wins and innovation. The company's financial performance and valuation present significant risks, while the earnings call provides a more optimistic view of future growth potential.

Positive Factors

Automotive Growth

Automotive growth was primarily driven by E-mobility as dollar content in ADAS features continues to rise.

Cyclical Recovery

Orders, bookings, and backlog are all tracking better, reaffirming the cyclical recovery is underway.

Demand and Inventory

Demand and inventory is gradually improving, and robust design activity bodes well long term.

Earnings Leverage

Analyst expects more earnings leverage with GM trending back in the right direction.

Negative Factors

Ownership Structure

Sanken Electric owns 32% of the company and could sell shares in September after its lock-up period ends.

Stock Performance

A roughly in-line guide drove a leg down in the stock—unsurprising given the high buyside bar seen across analog peers.

Allegro MicroSystems Business Overview & Revenue Model

Company Description

Allegro MicroSystems, Inc. designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; power ICs comprising motor driver ICs, and regulator and LED driver ICs; and photonic and 3D sensing components, including photodiodes, eye-safe lasers, and readout ICs for LiDAR applications. The company sells its products to original equipment manufacturers and suppliers primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. 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. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.

How the Company Makes Money

Allegro MicroSystems generates revenue primarily through the sale of its semiconductor products to a diverse range of customers, including automotive manufacturers, industrial equipment makers, and consumer electronics companies. Key revenue streams include the sale of magnetic sensors and power management ICs, which are crucial for applications in electric vehicles and industrial automation. Additionally, Allegro benefits from long-term partnerships with prominent automotive and industrial firms, which provide stable demand for its products. The company's focus on research and development allows it to introduce innovative solutions that meet evolving market needs, thereby driving growth and profitability.

Allegro MicroSystems Financial Statement Overview

Summary

Allegro MicroSystems is facing financial headwinds with declining revenue and profitability impacting its income statement. The balance sheet shows a solid equity base but increased leverage. Cash flow generation remains a positive aspect, suggesting operational resilience despite recent challenges.

Income Statement

Allegro MicroSystems has experienced a decline in revenue and profitability in recent periods. The TTM data shows a negative EBIT and net income, indicating operational challenges. The gross profit margin remains moderate, but declining revenue growth and negative net profit margins are concerning.

Balance Sheet

The company maintains a reasonable equity position with a debt-to-equity ratio that is manageable, though it has increased compared to previous years. The return on equity has turned negative recently due to losses, but a solid equity ratio reflects potential for recovery.

Cash Flow

Cash flow remains a relative strength for Allegro MicroSystems, with positive operating cash flow and free cash flow in the TTM. However, cash flow growth has been inconsistent, and the free cash flow to net income ratio is elevated due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	761.49M	725.01M	1.05B	973.65M	768.67M	591.21M
Gross Profit	338.06M	321.53M	574.53M	546.08M	407.46M	278.90M
EBITDA	16.49M	9.17M	276.94M	264.49M	191.77M	50.68M
Net Income	-68.56M	-73.01M	152.70M	187.36M	119.41M	17.95M
Balance Sheet
Total Assets	1.39B	1.42B	1.53B	1.18B	892.62M	747.68M
Cash, Cash Equivalents and Short-Term Investments	129.11M	121.33M	212.14M	351.58M	282.38M	197.21M
Total Debt	335.08M	368.49M	275.21M	42.54M	41.45M	25.00M
Total Liabilities	464.95M	489.86M	398.89M	214.34M	157.26M	160.81M
Stockholders Equity	922.65M	929.55M	1.13B	965.63M	734.21M	585.75M
Cash Flow
Free Cash Flow	49.76M	21.96M	56.94M	113.43M	86.19M	79.90M
Operating Cash Flow	89.33M	61.91M	181.72M	193.21M	156.13M	120.57M
Investing Cash Flow	-40.44M	-40.82M	-516.72M	-99.70M	-66.27M	-68.25M
Financing Cash Flow	-95.87M	-112.06M	198.88M	-20.00M	-5.31M	-72.19M

Allegro MicroSystems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 30.5 is below the 20-day moving average (MA) of 31.03, below the 50-day MA of 33.18, and above the 200-day MA of 26.18, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 23.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGM.

Allegro MicroSystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRUS	79 Outperform	$5.86B	17.72	18.53%	―	4.52%	18.89%
AMKR	76 Outperform	$5.98B	19.50	7.37%	3.09%	-1.20%	-19.46%
SMTC	65 Neutral	$5.04B	244.64	11.57%	―	22.22%	―
Sector *	61 Neutral	$35.09B	8.26	-10.59%	1.90%	8.56%	-9.51%
SLAB	57 Neutral	$4.41B	―	-9.71%	―	29.66%	47.97%
POWI	55 Neutral	$2.53B	75.63	4.68%	1.91%	7.16%	-21.24%
ALGM	53 Neutral	$5.71B	―	-6.75%	―	-18.82%	-195.20%

Allegro MicroSystems Corporate Events

Allegro MicroSystems Holds Annual Shareholders Meeting

On August 7, 2025, Allegro MicroSystems held its Annual Meeting of Shareholders where three key proposals were addressed. Shareholders elected three directors, ratified the appointment of PricewaterhouseCoopers as the independent auditor for the fiscal year ending March 27, 2026, and approved the company’s executive compensation, reflecting continued support for the company’s strategic direction.