ALGM (Allegro Microsystems) Moat Score: 5/10 (As of Jul. 05, 2026)


ALGM Allegro Microsystems Inc ALGM
73 GF Score
Price $55.49
GF Value $29.44
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Allegro Microsystems Moat Score?

Allegro Microsystems ALGM -12.21% 73 Moat Score is 5 as of Jul. 05, 2026. GuruFocus rates ALGM with a GF Score™ of 73/100 and a GF Value™ of $29.44 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,000 Semiconductors companies, Allegro Microsystems ranks better than 93.4% on this metric.

Allegro Microsystems has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Allegro Microsystems has Narrow Moat: Allegro Microsystems Inc benefits from valuable intellectual property and patents in the semiconductor industry, providing a solid narrow moat. However, intense competition and moderate customer switching costs prevent it from achieving a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Allegro Microsystems might have Narrow Moat - Solid narrow moat.

Allegro Microsystems  (NAS:ALGM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Allegro Microsystems Moat Score Related Terms

ALGM vs SIMO, SWKS, RMBS: Moat Score Comparison

For the Semiconductors subindustry, Allegro Microsystems's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Allegro Microsystems's Moat Score distribution charts can be found below:

* The bar in red indicates where Allegro Microsystems's Moat Score falls into.


ALGM
73GF Score
Allegro Microsystems Inc ALGM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Allegro Microsystems (ALGM) has a Moat Score of 5 as of Jul. 05, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Allegro Microsystems ranks #66 out of 1000 companies in the Semiconductors industry, placing it in the top 6.6%.
Is Allegro Microsystems' Moat Score too high?
Allegro Microsystems' current Moat Score is 5. Based on the distribution chart, Allegro Microsystems ranks #66 out of 1000 companies in the Semiconductors industry, which is in the top quartile — a strong position 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' Moat Score compare to SIMO and SWKS?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #66 out of 1000 companies for Moat Score. This places Allegro Microsystems in the top 7% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Semiconductors company?
A good Moat Score depends on the Semiconductors industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Allegro Microsystems's current Moat Score is 5. 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 $29.44, compared to a current price of $55.49 — trading 88.5% above its estimated fair value. The current Moat Score is 5. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Moat Score is 5 as of Jul. 05, 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 $55.49 is trading 88.5% above its estimated GF Value™ of $29.44. GuruFocus considers Allegro Microsystems to be Significantly Overvalued.

Key valuation signals for ALGM:

  • Moat Score: 5
  • GF Value™: $29.44 vs. price of $55.49 (88.5% above fair value)
  • GF Score™: 73/100 with 8 warning signs

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 Business Description

Other Exchanges ALGM:Mexico6V5:Germany
Address 955 Perimeter Road, Manchester, NH, USA, 03103
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

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.49
Price
$29.44
GF Value