ALGM (Allegro Microsystems) Beneish M-Score: -2.74 (As of Jun. 25, 2026)


ALGM Allegro Microsystems Inc ALGM
73 GF Score
Price $55.42
GF Value $29.25
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Allegro Microsystems Beneish M-Score?

Allegro Microsystems ALGM -0.18% 73 Beneish M-Score is -2.74 as of Jun. 25, 2026. GuruFocus rates ALGM with a GF Score™ of 73/100 and a GF Value™ of $29.25 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 987 Semiconductors companies, Allegro Microsystems ranks better than 69.81% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.74 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Allegro Microsystems's Beneish M-Score or its related term are showing as below:

ALGM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.4   Max: -2.08
Current: -2.74

During the past 8 years, the highest Beneish M-Score of Allegro Microsystems was -2.08. The lowest was -3.04. And the median was -2.40.


Allegro Microsystems Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Allegro Microsystems's Beneish M-Score 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.

Allegro Microsystems Beneish M-Score Chart

Allegro Microsystems Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
Get a 7-Day Free Trial -2.38 -2.42 -2.32 -3.04 -2.74

Allegro Microsystems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.04 -2.51 -2.39 -2.77 -2.74

ALGM vs QRVO, CRUS, SIMO: Beneish M-Score Comparison

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

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

* The bar in red indicates where Allegro Microsystems's Beneish M-Score falls into.


ALGM
73GF Score
Allegro Microsystems Inc ALGM
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Allegro Microsystems Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Allegro Microsystems for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0746+0.528 * 0.9582+0.404 * 0.9651+0.892 * 1.2277+0.115 * 0.9571
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9123+4.679 * -0.112519-0.327 * 0.9415
=-2.74

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $115.0 Mil.
Revenue was 243.187 + 229.21 + 214.294 + 203.405 = $890.1 Mil.
Gross Profit was 114.275 + 107.101 + 99.292 + 91.302 = $412.0 Mil.
Total Current Assets was $503.6 Mil.
Total Assets was $1,416.2 Mil.
Property, Plant and Equipment(Net PPE) was $321.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $67.6 Mil.
Selling, General, & Admin. Expense(SGA) was $181.1 Mil.
Total Current Liabilities was $145.9 Mil.
Long-Term Debt & Capital Lease Obligation was $298.7 Mil.
Net Income was -16.488 + 8.299 + 6.519 + -13.227 = $-14.9 Mil.
Non Operating Income was -9.82 + -4.284 + -3.387 + -1.128 = $-18.6 Mil.
Cash Flow from Operations was 35.714 + 45.375 + 20.362 + 61.618 = $163.1 Mil.
Total Receivables was $87.2 Mil.
Revenue was 192.824 + 177.872 + 187.391 + 166.919 = $725.0 Mil.
Gross Profit was 79.879 + 81.215 + 85.662 + 74.771 = $321.5 Mil.
Total Current Assets was $483.0 Mil.
Total Assets was $1,421.0 Mil.
Property, Plant and Equipment(Net PPE) was $323.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $64.5 Mil.
Selling, General, & Admin. Expense(SGA) was $161.7 Mil.
Total Current Liabilities was $112.3 Mil.
Long-Term Debt & Capital Lease Obligation was $361.6 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(114.983 / 890.096) / (87.157 / 725.006)
=0.12918 / 0.120216
=1.0746

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(321.527 / 725.006) / (411.97 / 890.096)
=0.443482 / 0.462838
=0.9582

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (503.606 + 321.845) / 1416.175) / (1 - (483.036 + 323.768) / 1420.961)
=0.417126 / 0.432212
=0.9651

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=890.096 / 725.006
=1.2277

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(64.502 / (64.502 + 323.768)) / (67.593 / (67.593 + 321.845))
=0.166127 / 0.173565
=0.9571

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(181.089 / 890.096) / (161.68 / 725.006)
=0.203449 / 0.223005
=0.9123

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((298.691 + 145.925) / 1416.175) / ((361.581 + 112.261) / 1420.961)
=0.313956 / 0.333466
=0.9415

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-14.897 - -18.619 - 163.069) / 1416.175
=-0.112519

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Allegro Microsystems has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.74 mean?
Allegro Microsystems (ALGM) has a Beneish M-Score of -2.74 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Allegro Microsystems and its competitors. According to the industry distribution chart, Allegro Microsystems ranks #298 out of 987 companies in the Semiconductors industry, placing it in the top 30.2%.
Is Allegro Microsystems' Beneish M-Score too high?
Allegro Microsystems' current Beneish M-Score is -2.74. Based on the distribution chart, Allegro Microsystems ranks #298 out of 987 companies in the Semiconductors industry, which is above the industry midpoint. 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' Beneish M-Score compare to QRVO and CRUS?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #298 out of 987 companies for Beneish M-Score. This puts Allegro Microsystems in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Semiconductors company?
A good Beneish M-Score depends on the Semiconductors industry context. However, Beneish M-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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Allegro Microsystems and its competitors. Allegro Microsystems's current Beneish M-Score is -2.74. 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 $29.25, compared to a current price of $55.42 — trading 89.5% above its estimated fair value. The current Beneish M-Score is -2.74. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Beneish M-Score is -2.74 as of Jun. 25, 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 $55.42 is trading 89.5% above its estimated GF Value™ of $29.25. GuruFocus considers Allegro Microsystems to be Significantly Overvalued.

Key valuation signals for ALGM:

  • Beneish M-Score: -2.74
  • GF Value™: $29.25 vs. price of $55.42 (89.5% 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

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

$55.42
Price
$29.25
GF Value