ALGM (Allegro Microsystems) Profitability Rank: 7 (As of Jun. 2026) — 40% Above Median

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ALGM Allegro Microsystems Inc ALGM
86 GF Score
Price $34.43
GF Value $30.94
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Allegro Microsystems Profitability Rank?

Allegro Microsystems ALGM +0.95% 86 Profitability Rank is 7 as of Jun. 2026, which is 40% above its 10-year median of 5.00. GuruFocus rates ALGM with a GF Score™ of 86/100 and a GF Value™ of $30.94 (Modestly Overvalued). The stock has 6 warning signs investors should review.

Allegro Microsystems has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Allegro Microsystems's Operating Margin % for the quarter that ended in Jun. 2026 was 9.82%. As of today, Allegro Microsystems's Piotroski F-Score is 7.


Allegro Microsystems Profitability Rank Related Terms


ALGM vs SLAB, MXL, CRUS: Profitability Rank Comparison

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

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

* The bar in red indicates where Allegro Microsystems's Profitability Rank falls into.


ALGM
86GF Score
Allegro Microsystems Inc ALGM
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Allegro Microsystems Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Allegro Microsystems has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Allegro Microsystems's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=25.467 / 259.243
=9.82 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Allegro Microsystems has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 7 mean?
Allegro Microsystems (ALGM) has a Profitability Rank of 7 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Allegro Microsystems and its competitors. This is 40% above median its historical median of 5.00. Over the past decade, Allegro Microsystems' Profitability Rank has ranged from 3.00 to 8.00.
Is Allegro Microsystems' Profitability Rank too high?
Allegro Microsystems' current Profitability Rank of 7 is 40% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Allegro Microsystems has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' Profitability Rank compare to SLAB and MXL?
Allegro Microsystems' Profitability Rank of 7 can be compared against companies in the Semiconductors industry. Historically, Allegro Microsystems' own Profitability Rank has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Semiconductors company?
A good Profitability Rank depends on the Semiconductors industry context. However, Profitability Rank 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 Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Allegro Microsystems and its competitors. Allegro Microsystems's current Profitability Rank is 7, which is 40% above median its own 10-year median of 5.00. 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 Modestly Overvalued. The stock's GF Value™ is $30.94, compared to a current price of $34.43 — trading 11.3% above its estimated fair value. The current Profitability Rank is 7, which is 40% above median its 10-year median of 5.00. Allegro Microsystems' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Profitability Rank is 7 as of Jun. 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 $34.43 is trading 11.3% above its estimated GF Value™ of $30.94. GuruFocus considers Allegro Microsystems to be Modestly Overvalued.

Key valuation signals for ALGM:

  • Profitability Rank: 7 (40% above median its 10-year median of 5.00)
  • GF Value™: $30.94 vs. price of $34.43 (11.3% above fair value)
  • GF Score™: 86/100 with 6 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.
86GF Score

Get the complete analysis for ALGM

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

$34.43
Price
$30.94
GF Value