The historical rank and industry rank for Allegro Microsystems's Net Margin % or its related term are showing as below:
ALGM'
s Net Margin % Range Over the Past 10 Years
Min: -10.07 Med: 8.7 Max: 19.24
Current: -1.67
ALGM's Net Margin % is ranked worse than 65.49% of 1023
companies
in the Semiconductors industry
Industry Median: 4.15
vs ALGM: -1.67
Allegro Microsystems (NAS:ALGM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Allegro Microsystems Net Margin % Related Terms
Allegro Microsystems Net Margin % Historical Data
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The historical data trend for Allegro Microsystems's Net Margin % 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.
For the Semiconductors subindustry, Allegro Microsystems's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Net Margin % distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Net Margin % falls into.
* 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 Net Margin % of -6.78% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Allegro Microsystems and its competitors. According to the industry distribution chart, Allegro Microsystems ranks #670 out of 1023 companies in the Semiconductors industry, placing it in the top 65.5%.
Is Allegro Microsystems' Net Margin % too high?
Allegro Microsystems' current Net Margin % is -6.78%. Based on the distribution chart, Allegro Microsystems ranks #670 out of 1023 companies in the Semiconductors industry, which is below 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' Net Margin % compare to QRVO and CRUS?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #670 out of 1023 companies for Net Margin %. This places Allegro Microsystems in the lower half of its industry. The industry median Net Margin % is 4.15. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.15, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Allegro Microsystems and its competitors. For the Semiconductors industry, the median Net Margin % is 4.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Net Margin % is -6.78%. 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 Net Margin % is -6.78%. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Net Margin % is -6.78% 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 $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:
Net Margin %: -6.78%
GF Value™: $29.25 vs. price of $55.42 (89.5% above fair value)
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
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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