Allegro MicroSystems, Inc. (ALGM) Stock

Allegro MicroSystems, Inc. (ALGM) is a Technology stock trading at $37.16 (as of 2026-08-20), with a market capitalization of $6.92B and a trailing P/E of 396.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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.

Understand Allegro MicroSystems, Inc.: how it makes money

Allegro MicroSystems designs and sells sensor integrated circuits (including magnetic sensor ICs) and application-specific analog power ICs to original equipment manufacturers and suppliers, primarily for automotive and industrial motion and energy-efficient systems.

Profit is driven by product mix, with magnetic sensor ICs representing 64% of revenue (vs 36% for power ICs), and the company has only a 4.2% operating margin, so shifts in mix and inventory dynamics can matter a lot.

Business quality (Weak): Useful directional operating mix and inventory-related KPIs are provided, but the panel has limited segment granularity and no clear quarter-by-quarter trend data.

Bull case

Revenue mix is clearly disclosed by product type, with magnetic sensor ICs at 64% of revenue and power ICs at 36%: This helps investors understand what part of the portfolio is contributing most to sales.
Working-capital pressure appears to be improving, with Distributor Inventory Decline of 25%: Lower distributor inventory can support healthier channel demand signals for the next sell-through cycle.

Bear case

Earnings buffer looks limited, with operating margin at 4.2%: If costs rise or demand softens, operating leverage may be constrained.
Inventory levels remain meaningful (Days Inventory Outstanding of 135, and Net Inventory Days of 87): If demand weakens or channel inventory rebuilds, inventory costs and production planning could pressure results.

Valuation — source: SEC EDGAR (first-party)
Price	$37.16
Market Cap	$6.92B
P/E Ratio	396.3
EV / EBITDA	77.2
Price / Book	7.16
Price / Sales	7.64
FCF Yield	3.4%
DCF Value (model)	$4.57
DCF Upside vs Price	-87.7%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$890.10M
Net Margin	-1.7%
Revenue Growth (YoY)	27.5%
EPS Growth (YoY)	-228.6%
FCF Growth (YoY)	-72.6%

Financial Health — source: SEC EDGAR
Altman Z-Score	9.94 (safe)
Piotroski F-Score	6/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	396.3
Sector P/E (Technology)	33.9
Industry P/E (Electronic Equipment)	39.4
vs Sector	1068.0%
vs Industry	906.1%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	FMR LLC ($864.59M)
Institutional Holders Tracked	10
Congressional Trades (recent)	7

Company
Sector	Technology
Industry	Electronic Equipment
CEO	Michael C. Doogue
Employees	4,593
Country	US
IPO Date	2020-10-29

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Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.