# Allegro MicroSystems Inc. (ALGM) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $36.61, market value $6.8 billion.

## Valuation
- **P/E (trailing): 523.0×** (5-yr avg 43.7×, 3-yr avg 34.6×). Allegro MicroSystems Inc. trades at 523.0× trailing earnings, well above its own five-year average of 43.7×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 24.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.31**. A PEG of 0.31 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 7.2×**. Each dollar of revenue is priced at 7.2×.
- **Price / book: 7.1×**. The shares trade at 7.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 60.4×**. Enterprise value is 60.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.3%** (5-yr avg 1.3%). Free cash flow equals 1.3% of the market value, in line with its five-year average of 1.3%.
- **Earnings yield: 0.2%**. The inverse of the P/E: 0.2% of the price is earned each year.

## Profitability
- **Gross margin: 47.2%**. Allegro MicroSystems Inc. keeps 47.2% of revenue after the direct cost of what it sells.
- **Operating margin: 4.9%**. 4.9% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: -1.7%**. The company reported a net loss over the last twelve months.
- **Return on equity: -1.6%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 3.4%**. Return on all capital, debt included, is 3.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 1.0%**. Each dollar of assets produces 1.0% of profit.

## Growth
- **Revenue growth (1 yr): 22.8%** (3-yr -2.9%/yr, 5-yr 8.5%/yr). Revenue grew 22.8% over the last year, against 8.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 79.5%**. Earnings per share rose 79.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 3.3%/yr**. Free cash flow has compounded at 3.3% a year over three years.

## Financial health
- **Debt to equity: 0.30**. Debt is 0.30 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.0×**. It would take 1.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 10.52**. A Z-score of 10.52 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. Allegro MicroSystems Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (12 analysts). 12 analysts cover Allegro MicroSystems Inc.; the consensus is strong_buy, with an average price target of $54.83 (+50% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 21.6%** (YTD 38.8%, 3-mo -21.1%). The shares are up 21.6% over twelve months including dividends.
- **From 52-week high: -49.0%** (63.4% above the low). Trading 49% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 2.83** (volatility 66%). Beta of 2.83 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ALGM · Page: https://foliofundamentals.com/stocks/algm

Not investment advice.