Allegro Microsystems Inc (ALGM) Stock Analysis
Verdict: HOLD
AI data center expansion and EV content gains drive earnings recovery, but high beta and automotive cyclicality pose valuation risk.
Investment score: 57/100
Analysis as of
Is Allegro Microsystems Inc stock worth reviewing? AI model thesis
The AI model evaluates ALGM as a Hold at $36.76. While FY27 earnings recovery (consensus $1.03 EPS vs -$0.08 in FY26) and AI data center growth provide long-term catalysts, the stock's high beta (2.04), zero insider buying (13 insider sales), and 35.7x forward P/E temper short-term risk-adjusted upside.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 68/100 (weight 15%)
- Technical Momentum: 52/100 (weight 15%)
- Earnings Quality: 78/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Allegro Microsystems Inc opportunities and risks
What speaks for ALGM
- Surging AI Data Center Content and 800-VDC Architecture Adoption
What speaks against ALGM
- Automotive Cycle Stagnation and Customer Inventory Corrections
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ALGM | 453.8x | 7.2x | 67.1x | 47.2% | 1.5% | 1.3% |
| SWKS | 46.1x | 3.3x | 16.8x | 40.7% | 7.2% | 1.5% |
| RMBS | 47.4x | 15.1x | 35.5x | 78.3% | 31.7% | 2.6% |
| QRVO | 27.1x | 2.9x | 13.6x | 48.2% | 11.0% | 6.2% |
| MXL | n/a | 15.0x | n/a | 57.4% | -18.2% | 0.0% |
| SLAB | n/a | 8.5x | 677.8x | 59.9% | -4.6% | -0.1% |
| Peer median | 27.1x | 8.5x | 16.8x | 57.4% | 7.2% | 1.5% |
Frequently asked questions about Allegro Microsystems Inc (ALGM)
Is ALGM stock a good investment?
The cached TradeMates AI model rates Allegro Microsystems Inc as HOLD with an investment score of 57/100. The AI model evaluates ALGM as a Hold at $36.76. While FY27 earnings recovery (consensus $1.03 EPS vs -$0.08 in FY26) and AI data center growth provide long-term catalysts, the stock's high beta (2.04), zero insider buying (13 insider sales), and 35.7x forward P/E temper short-term risk-adjusted upside. This is algorithmic model output, not personal investment advice.
Is ALGM stock a buy?
The TradeMates model verdict for ALGM is HOLD with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.