The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | — | 20.8x | Bottom tier | |
Growth | 69 | 22.3% | 6.1% | Top tier | |
Quality | 38 | 1.4% | 6.6% | Bottom tier | |
Safety | 77 | 0.9x | 0.7x | Top tier | |
Capital Return | 74 | — | 2.02% | Top tier | |
Momentum | 72 | 30.5% | 4.1% | Top tier | |
Sentiment | 45 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Allegro MicroSystems (ALGM) specializes in the development and manufacturing of magnetic sensor solutions and advanced power technologies. The company's business model relies on supplying the automotive and industrial markets, specifically the electric vehicle (EV), advanced driver assistance systems (ADAS), data center, and robotics sectors, with high-efficiency motor drivers and highly accurate current sensors. The company's revenue is expanding through increasing technical content per unit, such as the transition of server content from $150 to over $425 in high-power AI racks.
Regarding financial results for fiscal year 2026, the company reported total revenue of $890.1 million, achieving notable growth driven by the strength of the automotive sector, which accounted for 71 percent of sales at $629 million. Gross profit reached $412.0 million, and despite achieving strong profitability according to adjusted metrics, the company recorded a negative net income of $14.9 million and a loss per share of approximately $0.08 according to official financial statements (GAAP). In the fourth quarter, data center revenue jumped by 41 percent to account for 14 percent of total quarterly sales of $243 million.
Allegro MicroSystems stock is currently trading at a notable discount compared to the average analyst price target of $54.43. Analysts have a consensus buy recommendation for the stock, supported by a target price range with a minimum of $45 and a maximum of $67. This valuation reflects market confidence in the company's ability to capitalize on structural shifts in the electric vehicle and data center sectors, despite the current lack of a positive P/E ratio.
Figures in the text are as of 2026-07-14; the live price is shown at the top of the page.
Management expects fan volumes to continue growing in the foreseeable future despite the adoption of liquid cooling for processing units. This is due to the proliferation of fans in power supplies and network switching equipment, which rarely use liquid cooling. This expansion contributed to a 41 percent sequential increase in data center revenue in the fourth quarter of 2026.
Focused automotive sales, which include electric vehicles and advanced driver assistance systems (ADAS), are driving this growth after rising by 30 percent to $349 million in fiscal year 2026. The company benefits from increasing technical content in vehicles, such as steer-by-wire systems that offer a two to three times increase in content compared to traditional systems. The company also achieved overall automotive growth of 17 percent, exceeding its strategic target.
The rise in gold prices created a significant headwind of approximately 200 basis points on the gross margin during fiscal year 2026. The company responded by accelerating its gold-to-copper wire bonding conversion program, alongside implementing factory efficiency initiatives. Thanks to these actions, the company was able to improve its full-year gross margin by 140 basis points to reach 49.4 percent.
Automated analysis for informational purposes only — not investment advice.
The company expects to achieve revenue ranging between $245 million and $255 million in the first quarter, representing 23 percent year-over-year growth at the midpoint. Management also anticipates a non-GAAP gross margin between 50 and 51 percent. Non-GAAP earnings per share are expected to range between $0.19 and $0.23.