ALGM (Allegro Microsystems) ROCE %: 0.77% (As of Mar. 2026)

What is Allegro Microsystems ROCE %?

Allegro Microsystems ALGM -0.18% 73 ROCE % is 0.77% as of Mar. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Allegro Microsystems's annualized ROCE % for the quarter that ended in Mar. 2026 was 0.77%.

Allegro Microsystems (NAS:ALGM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Allegro Microsystems ROCE % Related Terms

Allegro Microsystems ROCE % Historical Data

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The historical data trend for Allegro Microsystems's ROCE % 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 ROCE % Chart

Allegro Microsystems Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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20.18

23.69

16.93

-4.07

0.56

Allegro Microsystems Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-3.49	-1.13	0.95	1.70	0.77

73GF Score

Allegro Microsystems Inc ALGM

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Allegro Microsystems ROCE % Calculation

Allegro Microsystems's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	7.234	/	( ( (1420.961 - 112.261)	+	(1416.175 - 145.925) )	/ 2 )
	=	7.234	/	( (1308.7	+	1270.25)	/ 2 )
	=	7.234	/	1289.475
	=	0.56 %

Allegro Microsystems's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	9.796	/	( ( (1422.711 - 141.145)	+	(1416.175 - 145.925) )	/ 2 )
	=	9.796	/	( ( 1281.566	+	1270.25 )	/ 2 )
	=	9.796	/	1275.908
	=	0.77 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 0.77% mean?

Allegro Microsystems (ALGM) has a ROCE % of 0.77% as of Mar. 2026.

Is Allegro Microsystems' ROCE % too high?

Allegro Microsystems' current ROCE % is 0.77%. The Semiconductors industry median ROCE % is 4.72. Allegro Microsystems' value of 0.77% is 83.7% below this industry median. 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' ROCE % compare to QRVO and CRUS?

Allegro Microsystems' ROCE % of 0.77% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.72. Allegro Microsystems' value of 0.77% is 83.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Semiconductors company?

The median ROCE % among Semiconductors companies is 4.72, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allegro Microsystems's current ROCE % of 0.77% is 83.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current ROCE % is 0.77%. 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 $29.25, compared to a current price of $55.42 — trading 89.5% above its estimated fair value. The current ROCE % is 0.77% and 83.7% below the Semiconductors industry median of 4.72. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current ROCE % is 0.77% 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 $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:

ROCE %: 0.77%
GF Value™: $29.25 vs. price of $55.42 (89.5% above fair value)
GF Score™: 73/100 with 8 warning signs
Industry Position: 83.7% below the Semiconductors median

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

Industry Technology Semiconductors

Comparable Companies QRVO CRUS SIMO MXL SLAB VSH NVTS SWKS SYNA DIOD NVDA AVGO TPE:2330 XKRX:000660 MU AMD INTC TXN QCOM TSE:285A

Other Exchanges ALGM:Mexico 6V5:Germany

Address 955 Perimeter Road, Manchester, NH, USA, 03103

Website https://www.allegromicro.com

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

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$55.42

Price

$29.25

GF Value

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