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ALGM Allegro MicroSystems, Inc. - Fundamental Analysis

BEARISH
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ALGM Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Semiconductors
Current Price Live
$31.13
Analyst Target
$45.83
+47.2% Upside
52W High
$43.86
52W Low
$16.38

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Mar 14, 2026
Market cap
$5.77B
P/E
N/A
ROE
-1.4%
Profit margin
-1.6%
Debt/Equity
0.32
Dividend yield
N/A

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
85%
Analysis Accuracy
ALGM's deterministic health scores signal significant financial distress: the Piotroski F-Score of 2/9 indicates weak operational and financial health, while the absence of an Altman Z-Score raises concerns about bankruptcy risk. Despite strong revenue growth (28.9% YoY) and positive earnings momentum (114.3% YoY EPS growth), the company reports negative profit margins (-1.57%) and ROE (-1.36%), undermining profitability sustainability. Insider selling totaling $1.65M over six months and a bearish technical trend further erode confidence. The stock trades at a premium valuation (Forward P/E: 33.05, Price/Sales: 6.87) relative to its weak fundamentals, suggesting overvaluation.

Key Strengths

Strong revenue growth of 28.9% YoY indicates market expansion and demand for products
Positive year-over-year EPS growth of 114.3% reflects improving earnings momentum
Healthy gross margin of 45.13% suggests strong pricing power and cost control
Low debt-to-equity ratio of 0.32 indicates conservative capital structure
High current ratio (3.65) and quick ratio (1.81) signal strong short-term liquidity

Key Risks

Piotroski F-Score of 2/9 indicates severe financial and operational weaknesses
Negative profit margin (-1.57%) and ROE (-1.36%) suggest poor profitability and capital efficiency
Insider selling of $1.65M in last 6 months signals lack of confidence from leadership
No Altman Z-Score available, raising unquantified bankruptcy risk
Stock trades at a premium valuation (Forward P/E: 33.05, Price/Sales: 6.87) despite weak profitability

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
31
Weak
Value
30
Future
65
Past
42
Health
20
Dividend
0
AI Verdict
Weak
Key drivers: Low Piotroski F-Score (2/9), Negative profitability metrics, Bearish insider activity, High valuation relative to fundamentals
Confidence
88%
Value
30/100

Valuation metrics suggest premium pricing, unsupported by current profitability; stock trades at a significant premium relative to peers and its own fundamentals.

Positives
  • Strong revenue growth (28.9% YoY)
  • High gross margin (45.13%)
Watchpoints
  • Negative profit margin (-1.57%)
  • Forward P/E of 33.05 is elevated
  • Price/Sales of 6.87 is high for a loss-making firm
  • No Graham Number or intrinsic value estimate available
Future
65/100

Strong growth momentum is evident, but inconsistent earnings surprises and lack of forward metrics limit confidence in sustained future performance.

Positives
  • 114.3% YoY EPS growth
  • 15.4% Q/Q EPS growth
  • 28.9% YoY revenue growth
Watchpoints
  • Lack of forward earnings guidance
  • No PEG ratio available
  • Historical earnings volatility (e.g., -3465% surprise in 2025-07)
Past
42/100

Historical earnings track record shows volatility and inconsistency, with recent quarters showing severe misses despite prior strength.

Positives
  • Consistent beat rate in earlier quarters (14/22 quarters beat)
  • Improving EPS trend from 2021 to 2026
Watchpoints
  • Two recent quarters with massive negative surprises (e.g., -3465.4%)
  • Inconsistent earnings delivery (only 2/4 last quarters beat estimates)
  • Negative ROE and ROA over multiple periods
Health
20/100

Despite strong liquidity, the company exhibits deep operational and financial health issues, with Piotroski F-Score indicating high risk of deterioration.

Positives
  • Low debt-to-equity (0.32)
  • High current and quick ratios (3.65, 1.81)
Watchpoints
  • Piotroski F-Score of 2/9 (extremely weak)
  • No Altman Z-Score available (raises distress risk)
  • Negative ROE (-1.36%) and ROA (0.28%)
  • Negative profit margin (-1.57%)
Dividend
0/100

The company does not pay dividends, which is typical for high-growth tech firms, but absence of any dividend policy further reflects reinvestment focus rather than shareholder returns.

Positives
No standout positives identified.
Watchpoints
  • No dividend yield or payout
  • Payout ratio of 0.00%
  • Dividend strength score of 0/100

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$31.13
Analyst Target
$45.83
Upside/Downside
+47.2%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ALGM and closest competitors.

Updated 2026-03-13
Company 5Y 3Y 1Y 6M 1M 1W
ALGM
Allegro MicroSystems, Inc.
Primary
+15.8% -31.1% +18.6% +4.5% -27.3% -2.5%
ARW
Arrow Electronics, Inc.
Peer
+11.2% +0.7% -2.2% -8.7% +3.7% -1.3%
BLSH
Bullish
Peer
-47.4% -47.4% -47.4% -47.4% -16.6% -8.4%
BMI
Badger Meter, Inc.
Peer
+72.2% +51.7% -22.0% -11.8% -7.1% -1.3%
BILL
BILL Holdings, Inc.
Peer
-62.2% -55.4% -47.5% +5.5% -12.3% +4.0%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
N/A
Forward P/E
33.05
PEG Ratio
N/A
P/B Ratio
5.99
P/S Ratio
6.87
EV/Revenue
7.05
EV/EBITDA
82.13
Market Cap
$5.77B

Profitability

Profit margins and return metrics

Profit Margin -1.57%
Operating Margin 4.18%
Gross Margin 45.13%
ROE -1.36%
ROA 0.28%

Growth

Revenue and earnings growth rates

Revenue Growth +28.9%
Earnings Growth N/A
Q/Q Revenue Growth N/A
Q/Q Earnings Growth N/A

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.32
Low debt
Current Ratio
3.65
Strong
Quick Ratio
1.81
Excellent
Cash/Share
$0.84

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-07
$N/A
2026-01-29
$0.15
+4.1% surprise
2025-10-30
$0.13
+5.4% surprise
2025-07-31
$-0.07
-3465.4% surprise

Technology Sector Comparison

Comparing ALGM against 149 companies in the Technology sector (10 bullish, 66 neutral, 73 bearish)
Return on Equity (ROE)
-1.36%
This Stock
vs
-8.13%
Sector Avg
-83.2% (Below Avg)
Profit Margin
-1.57%
This Stock
vs
-9.07%
Sector Avg
-82.7% (Weaker)
Debt to Equity
0.32
This Stock
vs
0.76
Sector Avg
-58.2% (Less Debt)
Revenue Growth
28.9%
This Stock
vs
55.69%
Sector Avg
-48.1% (Slower)
Current Ratio
3.65
This Stock
vs
3.32
Sector Avg
+9.9% (Better)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
ALGM
Allegro MicroSystems, Inc.
BEARISH $5.77B - -1.4% -1.6% $31.13
ARW
Arrow Electronics, Inc.
NEUTRAL $6.01B 13.08 7.6% 1.6% $116.66
BLSH
Bullish
BEARISH $5.39B - -% -30.7% $35.75
BMI
Badger Meter, Inc.
NEUTRAL $5.0B 36.77 21.5% 15.4% $169.52
BILL
BILL Holdings, Inc.
NEUTRAL $4.86B - 0.3% 0.8% $48.45

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2026-03-02 BRIANSKY SHARON J.D. General Counsel Sale 9,727 $340,445
2026-03-02 HAGEN ERIN Officer Sale 2,598 $90,930
2026-02-17 BRIANSKY SHARON J.D. General Counsel Sale 9,258 $384,762
2025-12-10 BRIANSKY SHARON J.D. General Counsel Sale 27,873 $836,190
2025-11-11 COLEMAN TROY Officer Stock Award 73,530 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
NONE
12 analysts
Needham
2026-02-19
Maintains
Buy Buy
Morgan Stanley
2026-02-13
up
Equal-Weight Overweight
Wells Fargo
2026-02-11
Maintains
Overweight Overweight
Jefferies
2026-01-30
Maintains
Buy Buy
UBS
2026-01-30
Maintains
Buy Buy
TD Cowen
2026-01-30
Maintains
Buy Buy
Morgan Stanley
2026-01-30
Maintains
Equal-Weight Equal-Weight
Wells Fargo
2026-01-30
Maintains
Overweight Overweight
Barclays
2026-01-30
Maintains
Overweight Overweight
Needham
2026-01-30
Maintains
Buy Buy

Past News Coverage

Recent headlines mentioning ALGM from our newsroom.

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