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Allegro MicroSystems ALGM

Allegro MicroSystems scores weak on business quality (4.3 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$35.57Oct 9, 2026
Business qualityWeak
Next earningsOct 29, 2026
Insiders, 90 daysQuiet

Why it matters

  1. What Allegro MicroSystems does

    Allegro MicroSystems designs and manufactures high-performance power and sensing semiconductor solutions for motion control and magnetic fields. Automotive and industrial original equipment manufacturers pay for these chips to enable efficient power conversion and green energy systems.

  2. What it does best

    Allegro excels at magnetic sensing, delivering a gross margin of 47.1% that outperforms peers like Skyworks at 40.7%. This edge is protected by proprietary packaging and deep customer integration that make replacements difficult.

  3. The main risk

    Thin interest coverage of 2.3x leaves the company vulnerable to any demand shock in its core automotive and industrial end markets, risking debt service strain if cash generation wobbles.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin stands at 5.0% and net margin at 1.5%, producing a weak return on equity of 1.5%. Profitability remains pressured by fixed costs despite recent revenue gains.

MoatWeak

The company holds a niche moat in magnetic sensors locking in automotive enterprises, reflected in its sector-matching revenue growth rank in the top quartile at the 75th percentile.

GrowthSteady

Revenue grew 22.8% to $946.0M over the latest period, rebounding sharply after a contraction in 2025 and outpacing peers like Skyworks at -2.2%.

Financial healthFair

Total debt of $287.0M outweighs $169.0M in cash, resulting in $118.0M of net debt. Free cash flow sits at $87.0M, showing improving cash generation but a strained balance sheet getting softer on coverage.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on ALGM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is ALGM a good business?

Allegro MicroSystems scores weak on the Cluenex quality check (4.3 of 10), measured against its own industry. Profitability is weak, moat weak, growth steady and financial health fair.

Are insiders buying ALGM?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does ALGM report earnings?

Oct 29, 2026.

For members

See ALGM today

  • Today's verdict on ALGM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Allegro MicroSystems (ALGM)”, https://cluenex.com/stocks/algm/, data as of Oct 10, 2026.