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Upturn AI Summary - About
Allegro Microsystems Inc(ALGM)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for ALGM
11/05/2026: ALGM (1-star) is currently NOT-A-BUY. Pass it for now.
Allegro MicroSystems is a specialized semiconductor company that designs high-performance sensors and power management ICs for automotive and industrial markets. The company holds a significant position in magnetic sensing and is well-aligned with the structural shift toward vehicle electrification and factory automation. Its main growth story centers on increasing its content per vehicle, supported by a fab-lite model that emphasizes capital efficiency. However, investors should be aware of risks such as high exposure to cyclical automotive demand, intense competition from large chipmakers, and price volatility. Allegro best suits growth-oriented investors looking for exposure to automotive electronics, though it does not provide dividends and remains sensitive to cyclical industry trends.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company benefits from structural growth trends in vehicle electrification and industrial automation. |
| Momentum investor | Mixed fit | Momentum is conditional on positive automotive demand signals and sector-wide sentiment. |
| Value investor | Mixed fit | Valuation fluctuates based on cyclical automotive industry expectations rather than steady-state value metrics. |
| Dividend investor | Weak fit | The company does not pay a dividend, focusing instead on capital reinvestment. |
| Low-risk investor | Weak fit | High exposure to cyclical automotive markets creates inherent price volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The stock is highly sensitive to shifts in automotive production forecasts. |
| Valuation risk | Medium | Investors often price the stock based on future growth, leaving it susceptible to earnings revisions. |
| Competition risk (Semiconductor giants) | High | Large incumbents like Texas Instruments compete aggressively on price and portfolio breadth. |
| Business quality | Medium | The company has a strong niche focus, but faces execution risks in scaling new product lines. |
| Dividend income | Low / none | No dividend income is provided to shareholders. |
| Execution risk | Medium | Integrating acquisitions like Crocus Technology and scaling new sensing products is essential for success. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Highly Choppy
The stock has experienced frequent, large price swings that make its near-term movement less predictable.
Analysis of Past Performance
Type Stock | Historic Profit -22.3% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/05/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.83B USD | Price to earnings Ratio 195.31 | 1Y Target Price 48.85 |
Price to earnings Ratio 195.31 | 1Y Target Price 48.85 | ||
Volume (30-day avg) 3.5M shares | Beta 2.05 | 52 Weeks Range 22.41 - 71.77 | Updated Date 11/05/2026 |
52 Weeks Range 22.41 - 71.77 | Updated Date 11/05/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.16 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Automotive Sensing & Power | Magnetic sensors and motor drivers for EVs, ADAS, and comfort systems. | Most revenue comes from selling chips that help cars detect motion and control power, tied directly to EV production. |
| Industrial Sensing & Power | Sensors and motor control chips for industrial robots, clean energy, and factory automation. | This segment provides growth through the increasing electrification and automation of factory equipment. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-10-29 | When Before Market | Estimate 0.18 | Actual 0.18 |
Profitability
Profit Margin 3.07% | Operating Margin (TTM) 12.8% |
Management Effectiveness
Return on Assets (TTM) 4.23% | Return on Equity (TTM) 3.2% |
Valuation
Trailing PE 195.31 | Forward PE 33 | Enterprise Value 6.39B | Price to Sales(TTM) 5.78 |
Enterprise Value 6.39B | Price to Sales(TTM) 5.78 | ||
Enterprise Value to Revenue 6.33 | Enterprise Value to EBITDA 48.82 | Shares Outstanding 186.48M | Shares Floating 125.12M |
Shares Outstanding 186.48M | Shares Floating 125.12M | ||
Percent Insiders 32.53 | Percent Institutions 81.19 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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