Allegro MicrosystemsALGM +3.18%73 Interest Coverage is 2.34 as of Mar. 2026, which is 96% below its 10-year median of 54.68. GuruFocus rates ALGM with a GF Score™ of 73/100 and a GF Value™ of $29.28 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 636 Semiconductors companies, Allegro Microsystems ranks worse than 93.55% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Allegro Microsystems's
Operating Income
for the
three
months ended in Mar. 2026 was $12.0 Mil. Allegro Microsystems's Interest Expense for the
three
months ended in Mar. 2026 was $-5.1 Mil.
Allegro Microsystems's interest coverage for the quarter that ended in Mar. 2026 was 2.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Allegro Microsystems's Interest Coverage or its related term are showing as below:
ALGM'
s Interest Coverage Range Over the Past 10 Years
Min: 1.13 Med: 54.68 Max: 480.25
Current: 1.13
ALGM's Interest Coverage is ranked worse than 93.55% of 636
companies
in the Semiconductors industry
Industry Median: 20.225
vs ALGM: 1.13
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Allegro Microsystems Interest Coverage Related Terms
Allegro Microsystems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Allegro Microsystems's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ALGM vs SIMO, SWKS, RMBS: Interest Coverage Comparison
For the Semiconductors subindustry, Allegro Microsystems's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allegro Microsystems Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Allegro Microsystems (ALGM) has a Interest Coverage of 2.34 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Allegro Microsystems and its competitors. This is 96% below median its historical median of 54.68. Over the past decade, Allegro Microsystems' Interest Coverage has ranged from 1.13 to 480.25. According to the industry distribution chart, Allegro Microsystems ranks #595 out of 636 companies in the Semiconductors industry, placing it in the top 93.6%.
Is Allegro Microsystems' Interest Coverage too high?
Allegro Microsystems' current Interest Coverage of 2.34 is 96% below median its 10-year median of 54.68. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 480.25. The Semiconductors industry median Interest Coverage is 20.23. Allegro Microsystems' value of 2.34 is 88.4% below this industry median. Based on the distribution chart, Allegro Microsystems ranks #595 out of 636 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Allegro Microsystems has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' Interest Coverage compare to SIMO and SWKS?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #595 out of 636 companies for Interest Coverage. This places Allegro Microsystems in the lower half of its industry. The industry median Interest Coverage is 20.23. Allegro Microsystems' value of 2.34 is 88.4% below this benchmark. Historically, Allegro Microsystems' own Interest Coverage has ranged from 1.13 to 480.25 over the past decade. While the company's 10-year median is 54.68 vs. the industry median of 20.23, Allegro Microsystems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 636 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allegro Microsystems's current Interest Coverage of 2.34 is 88.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Allegro Microsystems and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Interest Coverage is 2.34, which is 96% below median its own 10-year median of 54.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allegro Microsystems stock overvalued right now?
Based on GuruFocus' analysis, Allegro Microsystems (ALGM) is currently considered Significantly Overvalued. The stock's GF Value™ is $29.28, compared to a current price of $59.73 — trading 104% above its estimated fair value. The current Interest Coverage is 2.34, which is 96% below median its 10-year median of 54.68 and 88.4% below the Semiconductors industry median of 20.23. Allegro Microsystems' overall GF Score™ is 73/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Interest Coverage is 2.34 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allegro Microsystems (ALGM) Overvalued in 2026?
Based on GuruFocus' analysis, Allegro Microsystems stock appears to be overvalued.
The current stock price of $59.73 is trading 104% above its estimated GF Value™ of $29.28.
GuruFocus considers Allegro Microsystems to be Significantly Overvalued.
Key valuation signals for ALGM:
Interest Coverage: 2.34 (96% below median its 10-year median of 54.68)
GF Value™: $29.28 vs. price of $59.73 (104% above fair value)
Industry Position: 88.4% below the Semiconductors median (#595 of 636)
No single metric tells the full story. See the ALGM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allegro Microsystems Inc is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories: SENSE, which includes Current Sensors, Switches, and Latches, and Interface ICs among others; REGULATE, which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE, which includes BLDC Drivers, Brush DC, and others. Product-wise, the firm derives the majority of its revenue from sales of Magnetic sensors.
73GF Score
Get the complete analysis for ALGM
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