Allegro MicroSystems

ALGM · Nasdaq · Information Technology · Financials, fiscal 2020 to 2026

ALGM · Last close · October 26, 2026

$32.32

Allegro MicroSystems' revenue rose 22.8% to $890 million in fiscal 2026. Its operating margin was 2.1%, up from −2.7% a year earlier. Free cash flow was $125 million, up 468.8%. The diluted share count fell 1.4%.

ALLEGRO MICROSYSTEMS, INC. Latest fiscal year ended March 27, 2026 10-K filed May 21, 2026 · 0001193125-26-233537 Updated October 16, 2026

Revenue

$890M

22.8%

Operating margin

2.1%

4.8 pts

Net income

−$15M

Free cash flow

$125M

468.8%

Return on capital

1.3%

2.7 pts

Market cap

$6.1B

Oct 26 close

P/E

—

Over 200x

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2020 to 2024, earnings per share fell 32.2% a year and net income grew 42.5% a year, as new shares raised the share count by 1847% and diluted each share's earnings. Allegro MicroSystems then lost money in fiscal 2025 and 2026.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Allegro MicroSystems yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Allegro MicroSystems' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Allegro MicroSystems' fiscal 2026 free cash flow of $125M, net cash of −$118M at March 27, 2026 and 185 million diluted shares, from its filings. The scenarios are fitted to Allegro MicroSystems: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -2.9% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Semiconductors), plus 1 point as a smaller company, worth $6.1B, plus 1 point for unsteady results (a loss in fiscal 2026); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2026.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at March 27, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Allegro MicroSystems's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 14% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $32.32
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Allegro MicroSystems' earnings per share of $0.06 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 68.2×, the average of its peers' median and the Information Technology median for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 14%, 13% and 12%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 26, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Astera Labs, MACOM Technology Solutions.

Earnings growth in the years ahead (% a year) Starts at Allegro MicroSystems' revenue growth over the last 3 years, -2.9% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $32.32
Value at this multiple, against the last close: —

Company	Last close	Earnings per share	P/E today
Astera LabsALAB	$259.51	$2.02	128.5×
MACOM Technology SolutionsMTSI	$243.58	$3.14	77.6×
Allegro MicroSystemsALGM	$32.32	$0.06	—

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	282	352	212	121	169
Debt incl. finance leases	25	25	254	346	287
Net debt (negative means net cash)	−257	−327	41	225	118
Net debt to EBITDA	−1.4x	−1.3x	0.1x	5.0x	1.4x
Debt to equity	0.0x	0.0x	0.2x	0.4x	0.3x
Interest coverage	54.7x	87.0x	18.2x	−0.7x	0.8x
Current ratio	4.9x	4.0x	4.8x	4.3x	3.5x
Quick ratio	4.1x	3.1x	3.5x	2.7x	2.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Allegro MicroSystems shares on the open market, and 9 insiders sold $5.2 million, $1.7 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 17, 2026	Jennie RaubacherDirector	Sold plan	1,000	$45.32	$45,320	Form 4
Aug 10, 2026	Erin HagenSVP, CHRO	Sold plan	2,285	$44.39	$101,431	Form 4
Jun 3, 2026	Richard MadormoSVP, Worldwide Sales	Sold	5,000	$52.72	$263,600	Form 4
May 22, 2026	Troy ColemanSVP, General Manager, Products	Sold	4,500	$45.72	$205,740	Form 4
May 21, 2026	Roald Graham WebsterVP, Chief Accounting Officer	Sold	5,217	$44.89	$234,191	Form 4
May 18, 2026	Ian KentSVP, Global Operations	Sold	2,642	$41.56	$109,802	Form 4
May 14, 2026	Susan D LynchDirector	Sold	16,711	$45.46	$759,682	Form 4
May 11, 2026	Michael DooguePresident and CEO, Director	Sold	30,089	$47.23	$1.4 million	Form 4
May 11, 2026	Sharon BrianskySVP, GC and Secretary	Sold	8,948	$47.54	$425,388	Form 4
Mar 2, 2026	Sharon BrianskySVP, GC and Secretary	Sold plan	9,727	$35.00	$340,445	Form 4
Mar 2, 2026	Erin HagenSVP, CHRO	Sold	2,598	$35.00	$90,930	Form 4
Feb 17, 2026	Sharon BrianskySVP, GC and Secretary	Sold plan	9,258	$41.56	$384,762	Form 4

The latest 12 of 13 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Pass	Fail	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Fail	Pass
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Fail	Pass	Pass
Gross margin rose	Fail	Fail	Pass
Revenue rose relative to assets	Fail	Fail	Pass
F-score	4 of 9	3 of 9	7 of 9
Accruals ratio	−2.1%	−9.1%	−12.6%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Allegro MicroSystems side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Allegro MicroSystems	FY26	22.8%	2.1%	14.0%	1.3%	1.4x	7
Astera Labs	FY25	115.1%	20.3%	33.0%	—	—	—	Compare
MACOM Technology Solutions	FY25	32.6%	13.4%	19.9%	9.8%	−1.3x	5	Compare
Silicon Labs	FY25	34.3%	−9.0%	8.4%	−7.0%	—	5	Compare
Semtech	FY26	15.5%	3.1%	16.3%	2.9%	4.7x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

7 years of figures

Fiscal year	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	650	591	769	974	1,049	725	890
Revenue growth	—	−9.1%	30.0%	26.7%	7.8%	−30.9%	22.8%
Gross profit	261	279	408	546	574	322	412
Research and development	102	109	122	151	177	180	206
Operating income	53	12	137	203	196	−20	18
Net income	37	18	119	187	153	−73	−15
Diluted EPS (US$)	3.70	0.10	0.62	0.97	0.78	−0.39	−0.08
Diluted shares (millions)	10	176	192	194	195	188	185
Cash flow
Cash from operations	81	121	156	193	182	62	163
Capital expenditure	46	41	70	80	125	40	38
Free cash flow	36	80	86	113	57	22	125
Dividends paid	0	400	0	0	0	0	0
Share buybacks	0	0	0	0	0	854	0
Acquisitions	0	12	14	20	408	0	0
Stock-based compensation	1	50	34	62	42	42	48
Balance sheet at fiscal year end
Cash and short-term investments	214	197	282	352	212	121	169
Debt incl. finance leases	43	25	25	25	254	346	287
Total assets	818	748	893	1,181	1,531	1,421	1,416
Total liabilities	184	161	157	214	399	490	460
Shareholders' equity	633	586	734	966	1,130	930	955
Margins and ratios
Gross margin	40.2%	47.2%	53.0%	56.1%	54.8%	44.4%	46.3%
Operating margin	8.1%	2.1%	17.8%	20.9%	18.7%	−2.7%	2.1%
Net margin	5.7%	3.0%	15.5%	19.2%	14.6%	−10.1%	−1.7%
Free cash flow margin	5.5%	13.5%	11.2%	11.7%	5.4%	3.0%	14.0%
Return on capital	—	2.2%	26.0%	32.3%	17.0%	−1.3%	1.3%
Return on equity	—	3.0%	18.1%	22.0%	14.6%	−7.1%	−1.6%
Return on assets	—	2.3%	14.6%	18.1%	11.3%	−5.0%	−1.1%
Net debt to EBITDA	−1.5x	−2.9x	−1.4x	−1.3x	0.1x	5.0x	1.4x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Allegro MicroSystems' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Allegro MicroSystems.