Is ALGM a good stock to buy right now?

Based on our 6-factor quantitative model, ALLEGRO MICROSYSTEMS, INC. (ALGM) receives a "Reduce" rating with a composite score of 45.0/100. It is ranked #2,071 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 38/100, Momentum 58/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for ALGM?

ALLEGRO MICROSYSTEMS, INC. (ALGM) has a "Reduce" rating and 2-star score. The composite score of 45.0 ranks it #2,071 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is ALGM in?

ALLEGRO MICROSYSTEMS, INC. operates in the Technology sector (Electronic Equipment industry) with a market cap of $6.17 billion. It is classified as a mid-cap stock.

Does ALGM pay a dividend?

ALGM does not currently pay a regular dividend. The company may be reinvesting profits for growth.

What is ALGM's P/E ratio?

ALGM has a trailing P/E ratio of 925.50x. The Technology sector average is 45.3x. This above-average P/E reflects growth expectations or premium valuation.

How profitable is ALGM?

ALGM's quality factor score is 50/100. Gross margin: 45.9%. ROE: -0.5% vs sector average -1.4%. Margins are moderate to low, reflecting competitive market dynamics.

How is ALGM valued compared to peers?

ALGM's value factor score is 38/100 (higher = cheaper). Key multiples: P/E 925.5x, EV/EBITDA 494.6x. Trading at a premium relative to peers.

What is ALGM's debt level?

ALGM's debt-to-equity ratio is 29%. Sector average: 43%. Low leverage suggests conservative financial management.

ALGM has a beta of 1.74, meaning it amplifies market moves. Stability score: 34/100.

Does ALGM have high short interest?

ALGM's short interest factor score is 39/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

ALGM Stock Analysis: Top Mid-Cap Reduce (Score 45.0/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
ALGM	+1.30%	+15.03%	+13.05%	+42.15%	+71.86%	-	-	-
Industry Proxy XLK	+0.39%	+4.88%	+2.05%	-0.94%	-26.62%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+1.36%	+11.43%	+12.72%	+42.51%	+42.34%	-	-	-
Alpha vs Sector	+0.91%	+10.16%	+11.01%	+43.09%	+98.49%	-	-	-

Metric	ALGM	Benchmark
P/E Ratio	925.5x	+1945%
EV/EBITDA	494.6x	+3768%
Price / Book	6.4x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
VRSN VERISIGN INC/CA	56	79	59	40	30.7x	-41.1%	88.0%	50.6%	8.3%	-87.0x	$23.0B	VS
IHS IHS Holding Ltd	55	42	63	63	-	-616.0%	48.0%	-96.1%	-	365.0x	$2.8B	VS
LHX L3HARRIS TECHNOLOGIES, INC. /DE/	55	50	52	66	37.5x	9.0%	25.5%	8.1%	10.3%	110.0x	$66.1B	VS
ESP ESPEY MFG & ELECTRONICS CORP	53	48	44	71	25.8x	12.8%	29.0%	17.1%	-11.7%	66.0x	$169M	VS
NYAX Nayax Ltd.	52	38	46	78	-	-13.6%	44.6%	-1.8%	-	30.0x	$2.2B	VS
ESE ESCO TECHNOLOGIES INC	52	49	40	69	65.6x	7.4%	40.8%	10.4%	16.3%	9.0x	$7.6B	VS
INTT INTEST CORP	52	50	32	72	-	-3.2%	43.1%	-3.1%	-22.8%	46.0x	$179M	VS
KARO Karooooo Ltd.	49	50	72	53	-	117.1%	69.5%	20.3%	-	10.0x	$1.6B	VS
MTC MMTec, Inc.	47	32	40	96	-	-1,370.8%	81.6%	-4,879.7%	-	120.0x	$136M	VS
CCLD CareCloud, Inc.	47	38	71	60	12.4x	18.5%	48.0%	9.6%	10.6%	47.0x	$154M	VS
ALGM ALLEGRO MICROSYSTEMS, INC.	45	50	38	58	925.5x	-0.5%	45.9%	-0.9%	22.3%	29.0x	$6.2B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020
Gross Margin %	0.5%	0.5%	0.4%	0.5%	0.6%	0.5%	0.5%	0.4%
Operating Margin %	0.0%	0.0%	-0.0%	0.2%	0.2%	0.2%	0.0%	0.1%
EBITDA Margin %	0.0%	0.0%	-0.0%	0.2%	0.2%	0.2%	0.1%	0.2%
Net Margin %	-0.0%	0.0%	-0.1%	0.1%	0.2%	0.2%	0.0%	0.1%
FCF Margin %	-	-	-	-	-	-	13.5%	5.5%
ROE %	-0.0%	0.0%	-0.1%	0.1%	0.2%	0.2%	0.0%	0.1%
ROA %	-0.0%	0.0%	-0.1%	0.1%	0.2%	0.1%	0.0%	0.0%
ROIC %	0.2%	0.6%	-1.2%	11.3%	16.6%	14.2%	2.3%	8.3%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

Gross Margin %

0.5%

0.4%

0.5%

0.6%

0.5%

0.4%

Operating Margin %

0.0%

-0.0%

0.2%

0.0%

0.1%

EBITDA Margin %

0.0%

-0.0%

0.2%

0.1%

0.2%

Net Margin %

-0.0%

0.0%

-0.1%

0.1%

0.2%

0.0%

0.1%

FCF Margin %

13.5%

5.5%

ROE %

-0.0%

0.0%

-0.1%

0.1%

0.2%

0.0%

0.1%

ROA %

-0.0%

0.0%

-0.1%

0.1%

0.2%

0.1%

0.0%

ROIC %

0.2%

0.6%

-1.2%

11.3%

16.6%

14.2%

2.3%

8.3%

Line Item	TTM	2025	2024	2023	2022	2021	2020
	$825M	$725M	$1.0B	$974M	$769M	$591M	$650M
	—	$403M	$472M	$348M	$361M	—	—
	$379M	$322M	$575M	$546M	$407M	$279M	$261M
Gross Margin	45.9%	44.4%	54.8%	56.1%	53.0%	47.2%	40.2%
	—	$162M	$188M	$195M	$151M	—	—
Research & Development	—	$180M	$177M	$151M	$122M	$109M	$102M
Depreciation	—	—	—	—	—	$49M	$64M
Total Operating Expenses	—	$341M	$378M	$343M	$271M	—	—
	$13M	-$20M	$196M	$203M	$137M	$12M	$53M
EBIT	$13M	-$20M	$196M	$203M	$137M	$12M	$53M
EBITDA	$13M	-$20M	$196M	$203M	$137M	$57M	$117M
Operating Margin	1.4%	-2.7%	18.7%	20.9%	17.8%	2.1%	8.1%
EBITDA Margin	1.6%	-2.7%	18.7%	20.9%	17.8%	9.7%	18.1%
	—	$30M	$11M	$2M	—	$9M	$0
	—	-$86M	$195M	$211M	$141M	—	—
Income Tax Expense	—	-$13M	$42M	$24M	$21M	-$20M	$16M
	-$5M	-$73M	$153M	$187M	$120M	$18M	$37M
Net Margin	-0.9%	-10.0%	14.6%	19.3%	15.6%	3.1%	5.7%
	$0.04	$-0.39	$0.79	$0.98	$0.63	$0.22	$3.70
Diluted EPS	$0.04	$-0.39	$0.78	$0.97	$0.62	$0.22	$3.70
Weighted Avg Basic	—	188M	193M	191M	190M	—	—
Weighted Avg Diluted	—	188M	195M	194M	192M	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

$825M

$725M

$1.0B

$974M

$769M

$591M

$650M

—

$403M

$472M

$348M

$361M

—

$379M

$322M

$575M

$546M

$407M

$279M

$261M

Gross Margin

45.9%

44.4%

54.8%

56.1%

53.0%

47.2%

40.2%

—

$162M

$188M

$195M

$151M

—

Research & Development

—

$180M

$177M

$151M

$122M

$109M

$102M

Depreciation

—

$49M

$64M

Total Operating Expenses

—

$341M

$378M

$343M

$271M

—

$13M

-$20M

$196M

$203M

$137M

$12M

$53M

EBIT

$13M

-$20M

$196M

$203M

$137M

$12M

$53M

EBITDA

$13M

-$20M

$196M

$203M

$137M

$57M

$117M

Operating Margin

1.4%

-2.7%

18.7%

20.9%

17.8%

2.1%

8.1%

EBITDA Margin

1.6%

-2.7%

18.7%

20.9%

17.8%

9.7%

18.1%

—

$30M

$11M

$2M

—

$9M

—

-$86M

$195M

$211M

$141M

—

Income Tax Expense

—

-$13M

$42M

$24M

$21M

-$20M

$16M

-$5M

-$73M

$153M

$187M

$120M

$18M

$37M

Net Margin

-0.9%

-10.0%

14.6%

19.3%

15.6%

3.1%

5.7%

$0.04

$-0.39

$0.79

$0.98

$0.63

$0.22

$3.70

Diluted EPS

$0.04

$-0.39

$0.78

$0.97

$0.62

$0.22

$3.70

Weighted Avg Basic

—

188M

193M

191M

190M

—

Weighted Avg Diluted

—

188M

195M

194M

192M

—

ALLEGRO MICROSYSTEMS, INC. (ALGM) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does ALLEGRO MICROSYSTEMS, INC. Do?

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; and power ICs comprising motor driver ICs, and regulator and LED driver ICs, as well as photonic and 3D sensing components, including photodiodes, eye-safe lasers and rangefinders, 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 incorporated in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd. ALLEGRO MICROSYSTEMS, INC. (ALGM) is classified as a mid-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Vineet Nargolwala and employs approximately 4,040 people. With a market capitalization of $6.2B, ALGM is one of the notable companies in the Technology sector.

ALLEGRO MICROSYSTEMS, INC. (ALGM) Stock Rating — Reduce (April 2026)

As of April 2026, ALLEGRO MICROSYSTEMS, INC. receives a Reduce rating with a composite score of 45.0/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.ALGM ranks #2,071 out of 4,446 stocks in our coverage universe. Within the Technology sector, ALLEGRO MICROSYSTEMS, INC. ranks #224 of 584 stocks, placing it in the upper half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

ALGM Stock Price and 52-Week Range

ALLEGRO MICROSYSTEMS, INC. (ALGM) currently trades at $37.00. The stock lost $0.02 (0.1%) in the most recent trading session. The 52-week high for ALGM is $43.86, which means the stock is currently trading -15.6% from its annual peak. The 52-week low is $16.38, putting the stock 125.9% above its annual trough. Recent trading volume was 1.5M shares, reflecting moderate market activity.

Is ALGM Overvalued or Undervalued? — Valuation Analysis

ALLEGRO MICROSYSTEMS, INC. (ALGM) carries a value factor score of 38/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 925.50x, compared to the Technology sector average of 45.27x — a premium of 1945%. The price-to-book ratio stands at 6.39x, versus the sector average of 3.16x. The price-to-sales ratio is 7.48x, compared to 1.06x for the average Technology stock. On an enterprise value basis, ALGM trades at 494.56x EV/EBITDA, versus 12.79x for the sector.

At current multiples, ALLEGRO MICROSYSTEMS, INC. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

ALLEGRO MICROSYSTEMS, INC. Profitability — ROE, Margins, and Quality Score

ALLEGRO MICROSYSTEMS, INC. (ALGM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -0.5%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -0.4% versus the sector average of -1.0%.

On a margin basis, ALLEGRO MICROSYSTEMS, INC. reports gross margins of 45.9%, compared to 50.9% for the sector. The operating margin is 1.4% (sector: -0.5%). Net profit margin stands at -0.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 22.3% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

ALGM Debt, Balance Sheet, and Financial Health

ALLEGRO MICROSYSTEMS, INC. has a debt-to-equity ratio of 29.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.65x, indicating strong short-term liquidity. Total debt on the balance sheet is $281M. Cash and equivalents stand at $155M.

ALGM has a beta of 1.74, meaning it is more volatile than the broader market — a $10,000 investment in ALGM would be expected to move 73.8% more than the S&P 500 on any given day. The stability factor score for ALLEGRO MICROSYSTEMS, INC. is 34/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

ALLEGRO MICROSYSTEMS, INC. Revenue and Earnings History — Quarterly Trend

In TTM 2026, ALLEGRO MICROSYSTEMS, INC. reported revenue of $825M and earnings per share (EPS) of $0.04. Net income for the quarter was $-5M. Gross margin was 45.9%. Operating income came in at $13M.

In Q3 2026, ALLEGRO MICROSYSTEMS, INC. reported revenue of $229M and earnings per share (EPS) of $0.04. Net income for the quarter was $8M. Gross margin was 46.7%. Revenue grew 28.9% year-over-year compared to Q3 2025. Operating income came in at $10M.

In Q2 2026, ALLEGRO MICROSYSTEMS, INC. reported revenue of $214M and earnings per share (EPS) of $0.04. Net income for the quarter was $7M. Gross margin was 46.3%. Revenue grew 14.4% year-over-year compared to Q2 2025. Operating income came in at $6M.

In Q1 2026, ALLEGRO MICROSYSTEMS, INC. reported revenue of $203M and earnings per share (EPS) of $-0.07. Net income for the quarter was $-13M. Gross margin was 44.9%. Revenue grew 21.9% year-over-year compared to Q1 2025. Operating income came in at $-3M.

Over the past 8 quarters, ALLEGRO MICROSYSTEMS, INC. has demonstrated a growth trajectory, with revenue expanding from $167M to $825M. Investors analyzing ALGM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

ALGM Dividend Yield and Income Analysis

ALLEGRO MICROSYSTEMS, INC. (ALGM) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

ALGM Momentum and Technical Analysis Profile

ALLEGRO MICROSYSTEMS, INC. (ALGM) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 39/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

ALGM vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, ALLEGRO MICROSYSTEMS, INC. (ALGM) ranks #224 out of 584 stocks based on the Blank Capital composite score. This places ALGM in the upper half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing ALGM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ALGM vs S&P 500 (SPY) comparison to assess how ALLEGRO MICROSYSTEMS, INC. stacks up against the broader market across all factor dimensions.

ALGM Next Earnings Date

No upcoming earnings date has been announced for ALLEGRO MICROSYSTEMS, INC. (ALGM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy ALGM? — Investment Thesis Summary

The quantitative profile for ALLEGRO MICROSYSTEMS, INC. suggests caution. The value score of 38/100 indicates premium valuation. High volatility (stability score 34/100) increases portfolio risk.

In summary, ALLEGRO MICROSYSTEMS, INC. (ALGM) earns a Reduce rating with a composite score of 45.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ALGM stock.

Related Resources for ALGM Investors

Explore more research and tools: ALGM vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ALGM head-to-head with peers: ALGM vs IHS, ALGM vs VRSN, ALGM vs ESE.

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ALLEGRO MICROSYSTEMS, INC. (ALGM) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does ALLEGRO MICROSYSTEMS, INC. Do?

ALLEGRO MICROSYSTEMS, INC. (ALGM) Stock Rating — Reduce (April 2026)

ALGM Stock Price and 52-Week Range

Is ALGM Overvalued or Undervalued? — Valuation Analysis

ALLEGRO MICROSYSTEMS, INC. Profitability — ROE, Margins, and Quality Score

ALGM Debt, Balance Sheet, and Financial Health

ALLEGRO MICROSYSTEMS, INC. Revenue and Earnings History — Quarterly Trend

ALGM Dividend Yield and Income Analysis

ALGM Momentum and Technical Analysis Profile

ALGM vs Competitors — Technology Sector Ranking and Peer Comparison

ALGM Next Earnings Date

Should You Buy ALGM? — Investment Thesis Summary

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