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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Allegro Microsystems's annualizedNet Income for the quarter that ended in Mar. 2026 was $-66.0 Mil. Allegro Microsystems's average total tangible assets for the quarter that ended in Mar. 2026 was $974.3 Mil. Therefore, Allegro Microsystems's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was -6.77%.
The historical rank and industry rank for Allegro Microsystems's Return-on-Tangible-Asset or its related term are showing as below:
ALGM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -7.27 Med: 8.2 Max: 19.34
Current: -1.56
During the past 8 years, Allegro Microsystems's highest Return-on-Tangible-Asset was 19.34%. The lowest was -7.27%. And the median was 8.20%.
ALGM's Return-on-Tangible-Asset is ranked worse than 67.67% of 1027
companies
in the Semiconductors industry
Industry Median: 2.69
vs ALGM: -1.56
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Allegro Microsystems Return-on-Tangible-Asset Related Terms
Allegro Microsystems Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Allegro Microsystems's Return-on-Tangible-Asset 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.
ALGM vs SWKS, SIMO, QRVO: Return-on-Tangible-Asset Comparison
For the Semiconductors subindustry, Allegro Microsystems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of -6.77% mean?
Allegro Microsystems (ALGM) has a Return-on-Tangible-Asset of -6.77% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Allegro Microsystems and its competitors. According to the industry distribution chart, Allegro Microsystems ranks #695 out of 1027 companies in the Semiconductors industry, placing it in the top 67.7%.
Is Allegro Microsystems' Return-on-Tangible-Asset too high?
Allegro Microsystems' current Return-on-Tangible-Asset is -6.77%. Based on the distribution chart, Allegro Microsystems ranks #695 out of 1027 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Allegro Microsystems has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' Return-on-Tangible-Asset compare to SWKS and SIMO?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #695 out of 1027 companies for Return-on-Tangible-Asset. This places Allegro Microsystems in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.69, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Allegro Microsystems and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Return-on-Tangible-Asset is -6.77%. 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 $29.79, compared to a current price of $46.94 — trading 57.6% above its estimated fair value. The current Return-on-Tangible-Asset is -6.77%. Allegro Microsystems' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Return-on-Tangible-Asset is -6.77% 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 $46.94 is trading 57.6% above its estimated GF Value™ of $29.79.
GuruFocus considers Allegro Microsystems to be Significantly Overvalued.
Key valuation signals for ALGM:
Return-on-Tangible-Asset: -6.77%
GF Value™: $29.79 vs. price of $46.94 (57.6% 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.
79GF Score
Get the complete analysis for ALGM
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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