Allegro MicroSystems Inc. Common Stock (ALGM)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable economics and a price that leaves room for error. Allegro designs sensor and power integrated circuits, a niche business, but its financial record is uneven. In fiscal 2024, the year ended 2024-03-29, revenue was $1.0B and net income $152.7M, or $0.78 per diluted share. In fiscal 2025, the year ended 2025-03-28, revenue fell to $725.0M and net income became a loss of $73.0M, or -$0.39 per share. Fiscal 2026, ended 2026-03-27, had revenue of $890.1M but still a net loss of $14.9M, or -$0.08 per share. The latest filed quarter, fiscal Q1 2027 ended 2026-06-26, showed revenue of $259.2M and net income of $15.9M, or $0.08 per diluted share—a clear improvement from fiscal Q1 2026, ended 2025-06-27, when revenue was $203.4M and net income was -$13.2M. That is a real turnaround signal. But at the 2026-10-13 close of $33.65, FairStock calculations show a P/E of 480.71, P/B of 6.51, FCF yield of 1.4%, EV/EBITDA of 63.56, and a Graham Number of $2.86, leaving a negative margin of safety. FairStock also shows ROE of 1.53% and ROCE of 2.97%, which are thin for a semiconductor business. The Piotroski F-score of 8/9 and Altman Z-score of 8.94 suggest improving fundamentals and a safe balance sheet, but the valuation already assumes a lot. I would want evidence that profitability and returns can be sustained before calling this a bargain.

In plain English: Allegro makes sensor and power chips used in complex machines and power systems. Sales are growing again, and the latest quarter showed a profit after a loss a year earlier, but profits are still thin and annual results recently had losses. At the recent close, the shares look expensive compared with current earnings and accounting value, even though the balance sheet appears stable.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-26) · fiscal Q3 2026 10-Q (period ended 2025-12-26) · fiscal Q2 2026 10-Q (period ended 2025-09-26) · fiscal Q1 2026 10-Q (period ended 2025-06-27) · FY2026 10-K (period ended 2026-03-27) · FY2025 10-K (period ended 2025-03-28) · FY2024 10-K (period ended 2024-03-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer