Allegro MicroSystems

ALGM

Semiconductors · Technology

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 26, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Strong

Valuation

Good

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Winston Score History

The full picture

Allegro MicroSystems makes tiny computer chips called semiconductors that sense and control electrical current and magnetic fields. Its main products are magnetic sensors and power integrated circuits, which are used in cars, industrial machines, and data centers. The company is a leading supplier of current sensors for electric vehicles, where its chips help manage battery power and motor control.

Allegro earns money by selling these chips directly to manufacturers, with automotive customers making up the majority of its revenue. The company operates globally, with significant manufacturing in the United States, Thailand, and the Philippines, and generates roughly $900 million in annual revenue. Its deep expertise in magnetic sensing technology and long-standing relationships with major automakers give it a competitive edge, but the business faces real risk from slowing electric vehicle adoption and a cyclical semiconductor market that can cause sharp swings in customer orders.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+26.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-10.7% YoY

YoY Growth Rate

Earnings declining

Insider Activity

32.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$195M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Allegro MicroSystems grew revenue 26% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

48.5%

Healthy — 48.5% gross margin

Profit after running costs

Operating Margin

9.8%

Modest — 9.8% operating margin

Return on the money invested

ROCE

4.7%

Weak — 4.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+24.2%

Fast-growing sales (+24.2% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

873%

Turns 873% of profit into real cash

Spare cash per sale

FCF Margin

9.3%

Modest free cash flow (9.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.30

Conservative — low debt load (0.30)

Covers its interest

Interest Cover

2.15x

Tight — interest eats into profit (2.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

496.5x

no trend

Expensive — P/E 496.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+469.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (496.5 → 27.4)

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Dividends

Not applicable for this business.

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