Allegro MicroSystems, Inc.

ALGM

NASDAQ · Semiconductors

$28.17

At close - Nov 6, 4:00 PM EST - USD

Market Cap$5.25B

P/E170.9x

52W High$71.77

Volume2.56M

VCP Research Verdict2027Q2

Margin Recovery Meets Lingering Fixed-Cost and Cash Volatility

ALGM's revenue has grown from $166.9M in 2025Q1 to $276.9M in 2027Q2, with year-over-year growth of 29.2% in the latest quarter, and gross margin has rebounded from 41.4% to 49.2%, suggesting demand durability beyond a single cycle.

GrowthExpanding

ProfitabilityModerate

ValuationExpensive

TechnicalsWeak

Explore valuation models

MARKET ACTION

ALGM price & volume

Price trend, volume and key moving averages

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Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis

Fundamental Trajectory

Revenue rose to $276.9M and gross margin recovered to 49.2% in 2027Q2, yet operating margin of 12.8% and net margin of 8.4% suggest that the fixed-cost base is absorbing much of the gross margin gain and earnings remain volatile.

Analyst Consensus+91.7% target

Buy(13 analysts)

12 Buy1 Hold0 Sell

The Bull Case

Upside Catalysts

Nvidia sector sentiment boost

Allegro MicroSystems' stock rose 8.2% following Nvidia's investment in Marvell, lifting overall sector sentiment.

Strong semiconductor solutions focus

The company specializes in high-performance power and sensing integrated circuits, enabling precise motion control and energy-efficient power management.

Compelling valuation upside

At 30x-35x earnings, the stock could support $60-$70, with further upside if FY28/FY29 EPS estimates reach $1.75.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return

ALGM+4.68%

S&P 500 (^GSPC)+7.63%

1-Year Return

ALGM+3.53%

S&P 500 (^GSPC)+9.69%

3-Year Return

ALGM+8.14%

S&P 500 (^GSPC)+76.06%

5-Year Return

ALGM-13.80%

S&P 500 (^GSPC)+63.83%

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis

Trailing P/E5Y High

170.9x

Forward P/EExpansion

27.0x

EV/EBITDA40th %ile

34.2x

FCF YieldCash Flow

2.0%

Valuation vs 5-Year History

Multiple Range

Metric

Current

5Y Median

Historical Range

Percentile

P/E

170.9x

45.8x

100th· High

EV/EBITDA

34.2x

35.4x

40th· Fair

Price/FCF

50.0x

81.9x

20th· Low

Current Multiple

5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection

Bear$4.45-84.2%

Base (Fair)$34.52+22.5%

Bull$10.56-62.5%

$4.45 Bear$34.52 Base$10.56 Bull

Current Market Price: $28.17

Trades at a 18.4% discount to Base DCF ($34.52)

Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend

Revenue FY26

$890M+22.8% YoY

Net income FY26

-$15M+79.6% YoY

Free cash flow FY26

$125M+468.8% YoY

Operating margin FY26

4.8%+7.5 pts YoY

ROIC (FY26)2.8%

Avg ROIC 5Y13.3%

ROE (TTM)3.2%

Piotroski Score7 / 9

Financial Statements →

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History

EPS Beat Rate11/12 (92%)

Revenue Beat Rate11/12 (92%)

Quarter	EPS (Act vs Est)	Revenue (Act vs Est)
Q4 2026Latest Oct 29, 2026	$0.26+6.3% vs $0.24	$277M+2.2% vs $271M
Q3 2026 Jul 30, 2026	$0.23+9.5% vs $0.21	$259M+3.1% vs $251M
Q2 2026 May 7, 2026	$0.17+4.2% vs $0.16	$243M+3.1% vs $236M
Q1 2026 Jan 29, 2026	$0.15+7.1% vs $0.14	$229M+3.8% vs $221M

Historical baseline: 12 quarters analyzedGAAP / Adjusted

MARKET COVERAGE

Latest News

4 Stories

GlobeNewsWire·2d ago

Allegro MicroSystems Delivers 48V Power and Precision Sensing Solutions for Next-Generation Advanced Driver Assistance Systems

MANCHESTER, N.H., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro”) (Nasdaq: ALGM), a global leader in power and sensing solutions for motion control and energy-efficient systems, is simplifying the transition from 12V to 48V automotive architectures with a complete motion control and sensing portfolio for next-generation advanced driver assistance systems (ADAS).

Benzinga·Oct 30, 2026

These Analysts Cut Their Forecasts On Allegro Microsystems After Q2 Results

Allegro MicroSystems Inc (NASDAQ:ALGM) posted upbeat earnings for the second quarter on Thursday.

Seeking Alpha·Oct 29, 2026

Allegro MicroSystems, Inc. (ALGM) Q2 2027 Earnings Call Transcript

MarketBeat·Oct 29, 2026

What Allegro MicroSystems (ALGM) Said on Its Q2 Earnings Call

Allegro MicroSystems NASDAQ: ALGM reported continued sales and booking momentum in its fiscal second quarter of 2027, with revenue exceeding the high end of its guidance range and growth across automotive, industrial and data center markets.

Filtered for Allegro MicroSystems, Inc.More Headlines

Compare before deciding

Benchmark ALGM against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Allegro MicroSystems, Inc. (ALGM)

Full Screener →

Company	Price	Market Cap	P/E Ratio	Rev Growth (1Y)	Net Margin	ROE	Div Yield
ALGMAllegro MicroSystems, Inc.Current	$28.17	$5.25B	170.93	22.77%	3.07%	3.18%	—
MPWRMonolithic Power Systems, Inc.	$1190.44	$58.49B	65.66	26.43%	23.85%	24.04%	0.5%
DIODDiodes Incorporated	$77.36	$3.55B	30.97	13.04%	6.51%	5.82%	—
POWIPower Integrations, Inc.	$40.26	$2.24B	50.94	5.85%	9.81%	6.57%	2.08%
TXNTexas Instruments Incorporated	$277.36	$253.3B	35.91	13.05%	34.25%	40.51%	1.97%
ADIAnalog Devices, Inc.	$363.56	$177.09B	43.11	16.89%	29.79%	12.26%	1.07%

Compare ALGM vs Peers

Allegro MicroSystems, Inc. (ALGM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs MPWR

Most directly comparable listed peer for ALGM.

Scale Benchmark

vs NVDA

Larger-name benchmark to compare ALGM against a more recognizable public peer.

Peer Set

Compare Top 5

vs MPWR, DIOD, POWI, TXN

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

ALGM SEC Filings & Documents

Allegro MicroSystems, Inc. (ALGM) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

Material company update

Oct 29, 2026·SEC

Material company update

Aug 7, 2026·SEC

Material company update

Jul 30, 2026·SEC

10-K Annual Reports

FY 2026

May 21, 2026·SEC

FY 2025

May 22, 2025·SEC

FY 2024

May 23, 2024·SEC

10-Q Quarterly Reports

FY 2026

Oct 30, 2026·SEC

FY 2026

Jul 31, 2026·SEC

FY 2026

Jan 30, 2026·SEC

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ALGM Frequently Asked Questions

Allegro MicroSystems, Inc. (ALGM) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials

What is Allegro MicroSystems, Inc.'s revenue?

Allegro MicroSystems, Inc. (ALGM) reported $1.01B in revenue over the trailing twelve months. Revenue was $890.1M in fiscal year 2026. That is 23% more than the $724.3M of fiscal year 2019.

How fast is Allegro MicroSystems, Inc. growing?

Allegro MicroSystems, Inc. (ALGM) grew revenue by 27.9% over the trailing twelve months, compared with the twelve months before.

Is ALGM profitable?

Yes. Allegro MicroSystems, Inc. (ALGM) earned $30.9M in net income over the trailing twelve months (a 3.1% net margin).

Dividend & Returns

What is ALGM's return on equity?

Allegro MicroSystems, Inc. (ALGM) had a return on equity (ROE) of 3.2% over the trailing twelve months. That is below the market's typical 10-15%.

What is Allegro MicroSystems, Inc.'s free cash flow?

Allegro MicroSystems, Inc. (ALGM) generated $104.9M in free cash flow over the trailing twelve months.

What if you invested $1,000 in ALGM back in 2019?

Total return calculator · dividends reinvested · 7+ years of data

See returns →

Quarter

EPS (Act vs Est)

Revenue (Act vs Est)

Q4 2026Latest

Oct 29, 2026

$0.26+6.3%

vs $0.24

$277M+2.2%

vs $271M

Q3 2026

Jul 30, 2026

$0.23+9.5%

vs $0.21

$259M+3.1%

vs $251M

Q2 2026

May 7, 2026

$0.17+4.2%

vs $0.16

$243M+3.1%

vs $236M

Q1 2026

Jan 29, 2026

$0.15+7.1%

vs $0.14

$229M+3.8%

vs $221M

Company

Price

Market Cap

P/E Ratio

Rev Growth (1Y)

Net Margin

ROE

Div Yield

ALGMAllegro MicroSystems, Inc.Current

$28.17

$5.25B

170.93

22.77%

3.07%

3.18%

—

MPWRMonolithic Power Systems, Inc.

$1190.44

$58.49B

65.66

26.43%

23.85%

24.04%

0.5%

DIODDiodes Incorporated

$77.36

$3.55B

30.97

13.04%

6.51%

5.82%

—

POWIPower Integrations, Inc.

$40.26

$2.24B

50.94

5.85%

9.81%

6.57%

2.08%

TXNTexas Instruments Incorporated

$277.36

$253.3B

35.91

13.05%

34.25%

40.51%

1.97%

ADIAnalog Devices, Inc.

$363.56

$177.09B

43.11

16.89%

29.79%

12.26%

1.07%