ALGM
Technology · Semiconductors
Performance
ALGM (ALGM) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
ALGM (ALGM) operates in the Semiconductors space within the Technology sector. With a market cap of $10.4B, it qualifies as a mid-cap company. Revenue is expanding quickly, but the company has yet to translate that growth into consistent profits — a common risk in high-growth early-stage businesses.
- Revenue grew 26% year-over-year — exceptional top-line expansion
- Current ratio of 3.5× — ample short-term liquidity
- Negative profit margin of -1.7% — company is currently unprofitable
- Negative ROE of -1.6% — shareholder equity is being eroded
- High debt-to-equity of 31.98× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
- Price is near its 52-week high — limited near-term upside, higher pullback risk
- High beta of 1.98 — this stock is significantly more volatile than the broader market
Verdict
Avoid
Significant fundamental concerns outweigh positives. High risk at current levels.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Jul 30, 2026
44
days
EPS (TTM)
$-0.08
P/E (TTM)
—
Fwd P/E
38.0
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $55.99
Graham Number
√(22.5 × EPS × Book Value)
N/A
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
3/10
43% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
-1.6%Return on equity — measures how efficiently capital is used
Positive profit margin
-1.7%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+26.1%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
31.98×Low financial leverage reduces risk of distress
Current ratio above 1
3.45×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$123M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Technology
About ALGM
Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs for sensing, motion control, and power management functions of complex electromechanical or power conversion systems. Its products include magnetic sensor ICs, such as position, speed, and electric current sensor ICs; and power ICs comprising motor driver ICs, such as regulator, power management ICs, and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. The company serves automotive and industrial markets, including advanced industrial markets such as AI data centers, robotics, and energy infrastructure sectors. 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.
Sector
Technology
Industry
Semiconductors
Location
Manchester, United States
Employees
4,250