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Allegro Microsystems

ALGM on Nasdaq. Allegro MicroSystems sells sensor and power chips to automakers and industrial equipment makers. Market value $7.2bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to March 2026.

Should I look at this?

Good business, but not cheap right now

Why it could be worth it

What to watch out for

See cheaper Technology stocks on the list

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
1.2%low

For every $100 of what the whole company costs, it produced $1.22 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
157.5×full

You pay 157.5 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to March 2026
13.1%five-year median

Each dollar kept in the business earns 13 cents a year. Above 10 is good.

Quality score: 97 of 100. Price score: 7 of 100. Our list needs 70 on quality and 60 on price.

$38.76 a share, 73% above its 1-year low

Over the past year the price has ranged from $22.41 to $71.77.

Dividend: 0.0% a year

Paid every year for 2 years

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.1
0.1
0.1
0.0
0.1
0.1
2022202320242025202612 monthsto Jun '26
Revenue
$769m$974m$1.0bn$725m$890m
Operating margin
17.8%20.9%18.7%-2.7%2.1%
Debt to equity
0.030.030.230.380.31
Shares outstanding
0.19bn0.19bn0.18bn0.19bn0.19bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)5 of 9
  • Profit backed by cash (accruals)No
  • Debt0.31× equity
  • Revenue growth, five yearsSlow, 8.5% a year
  • Buying back its own sharesYes, 3% fewer since 2022

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $259 million last quarter, up 27% on a year ago.
  • Profit: $16 million, after a loss of $13 million a year ago.
  • It keeps 5 cents of each $1 of sales as operating profit, after losing 2 cents a year earlier.
  • Spare cash over the past 12 months: $88 million, up from $50 million.
  • 2% more shares than a year ago. Each share owns a bit less of the company.
  • Debt is $131 million more than cash, down from $191 million a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$187m
December 2024$178m
March 2025$193m
June 2025$203m
September 2025$214m
December 2025$229m
March 2026$243m
June 2026$259m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024-$34m
December 2024-$7m
March 2025-$15m
June 2025-$13m
September 2025$7m
December 2025$8m
March 2026-$16m
June 2026$16m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
21 May 2026
Next quarterly (estimated, 10-Q)
30 October 2026

Who owns it

1 long-term investor we follow owns it, unchanged from 1 last quarter. 374 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

5 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 9 sold $5m.

  • Raubacher Jennie
    Director
    Sold
    Date
    17 August 2026
    Shares
    1,000
    Price
    $45.32
    Value
    $45,320
  • Hagen Erin
    SVP, CHRO
    Sold
    Date
    10 August 2026
    Shares
    2,285
    Price
    $44.39
    Value
    $101,431
  • Madormo Richard
    SVP, Worldwide Sales
    Sold
    Date
    3 June 2026
    Shares
    5,000
    Price
    $52.72
    Value
    $263,600
  • Coleman Troy
    SVP, General Manager, Products
    Sold
    Date
    22 May 2026
    Shares
    4,500
    Price
    $45.72
    Value
    $205,740
  • Webster Roald Graham
    VP, Chief Accounting Officer
    Sold
    Date
    21 May 2026
    Shares
    5,217
    Price
    $44.89
    Value
    $234,191
  • Kent Ian
    SVP, Global Operations
    Sold
    Date
    18 May 2026
    Shares
    2,642
    Price
    $41.56
    Value
    $109,802
  • Lynch Susan D
    Director
    Sold
    Date
    14 May 2026
    Shares
    16,711
    Price
    $45.46
    Value
    $759,682
  • Briansky Sharon
    SVP, GC and Secretary
    Sold
    Date
    11 May 2026
    Shares
    8,948
    Price
    $47.54
    Value
    $425,388
  • Doogue Michael
    President and CEO, Director
    Sold
    Date
    11 May 2026
    Shares
    30,089
    Price
    $47.23
    Value
    $1m
  • Briansky Sharon
    SVP, GC and Secretary
    Sold
    Date
    2 March 2026
    Shares
    9,727
    Price
    $35.00
    Value
    $340,445

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 21 May 2026, plus the 10-Q filed 31 Jul 2026 and 3 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It isn't cheap on profits: 157.5× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.