Allegro Microsystems Inc (ALGM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Allegro Microsystems Inc stock (ALGM) is currently trading at $32.63. Allegro Microsystems Inc PS ratio (Price-to-Sales) is 7.19. Analyst consensus price target for ALGM is $45.83. WallStSmart rates ALGM as Sell.
- ALGM PE ratio analysis and historical PE chart
- ALGM PS ratio (Price-to-Sales) history and trend
- ALGM intrinsic value — DCF, Graham Number, EPV models
- ALGM stock price prediction 2025 2026 2027 2028 2029 2030
- ALGM fair value vs current price
- ALGM insider transactions and insider buying
- Is ALGM undervalued or overvalued?
- Allegro Microsystems Inc financial analysis — revenue, earnings, cash flow
- ALGM Piotroski F-Score and Altman Z-Score
- ALGM analyst price target and Smart Rating
Allegro Microsystems Inc
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Smart Analysis
Allegro Microsystems Inc (ALGM) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in revenue growth, institutional own.. Concerns around return on equity and operating margin. Significant fundamental concerns warrant caution or avoidance.
Allegro Microsystems Inc (ALGM) Key Strengths (3)
74.78% of shares held by major funds and institutions
Strong revenue growth at 28.90% annually
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Allegro Microsystems Inc (ALGM) Areas to Watch (6)
Company is destroying shareholder value
Earnings declining -48.50%, profits shrinking
Company is losing money with a negative profit margin
Near-zero operating margins, business under pressure
Very expensive at 6.3x book value
Premium valuation at 7.2x annual revenue
Supporting Valuation Data
Allegro Microsystems Inc (ALGM) Detailed Analysis Report
Overall Assessment
This company scores 29/100 in our Smart Analysis, earning a F grade. Out of 9 metrics analyzed, 3 register as strengths (avg 8.3/10) while 6 fall into concern territory (avg 1.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Revenue Growth, Market Cap. Growth metrics are encouraging with Revenue Growth at 28.90%.
The Bear Case
The primary concerns are Return on Equity, EPS Growth, Profit Margin. Some valuation metrics including Price/Sales (7.19), Price/Book (6.27) suggest expensive pricing. Growth concerns include EPS Growth at -48.50%, which may limit upside. Profitability pressure is visible in Return on Equity at -1.37%, Operating Margin at 4.18%, Profit Margin at -1.57%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -1.37% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 28.90% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ALGM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ALGM's Price-to-Sales ratio of 7.19x sits near its historical average of 7.01x (49th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 37% below its historical high of 11.34x set in Dec 2021, and 87% above its historical low of 3.84x in Nov 2024. Over the past 12 months, the PS ratio has expanded from ~4.4x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Allegro Microsystems Inc (ALGM) · TECHNOLOGY › SEMICONDUCTORS
The Big Picture
Allegro Microsystems Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 840M with 29% growth year-over-year. The company is currently unprofitable, posting a -1.6% profit margin.
Key Findings
Revenue growing at 29% YoY, reaching 840M. This pace significantly outperforms most SEMICONDUCTORS peers.
Generating 41M in free cash flow and 45M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -1.6% profit margin. The path to breakeven will be the key catalyst.
Earnings fell 49% YoY while revenue grew 29%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Growth sustainability: can Allegro Microsystems Inc maintain 29%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 1.67, so expect amplified moves relative to the broader market.
Sector dynamics: monitor SEMICONDUCTORS industry trends, competitive moves, and regulatory changes that could impact Allegro Microsystems Inc.
Bottom Line
Allegro Microsystems Inc offers an attractive blend of growth (29% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(9 last 3 months)
| Insider | Type | Shares |
|---|---|---|
BRIANSKY, SHARON SVP, GC and Secretary | Sell | -9,258 |
| Insider | Type | Shares |
|---|---|---|
KENT, IAN SVP, Global Operations | Buy | +9,183 |
Data sourced from SEC Form 4 filings
Last updated: 11:50:06 AM
About Allegro Microsystems Inc(ALGM)
NASDAQ
TECHNOLOGY
SEMICONDUCTORS
USA
Allegro MicroSystems, Inc. designs, develops, manufactures and markets sensor integrated circuits (ICs) and analog power ICs for specific applications for motion control and energy efficient systems. The company is headquartered in Manchester, New Hampshire.