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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Allegro Microsystems's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was -35.75%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Allegro Microsystems's 3-Year ROIIC % or its related term are showing as below:
ALGM's 3-Year ROIIC % is ranked worse than 78.71% of 996
companies
in the Semiconductors industry
Industry Median: -0.145
vs ALGM: -35.75
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Allegro Microsystems 3-Year ROIIC % Related Terms
Allegro Microsystems 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Allegro Microsystems's 3-Year ROIIC % 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 SIMO, SWKS, RMBS: 3-Year ROIIC % Comparison
For the Semiconductors subindustry, Allegro Microsystems's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Allegro Microsystems (ALGM) has a 3-Year ROIIC % of -35.75 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Allegro Microsystems and its competitors. According to the industry distribution chart, Allegro Microsystems ranks #784 out of 996 companies in the Semiconductors industry, placing it in the top 78.7%.
Is Allegro Microsystems' 3-Year ROIIC % too high?
Allegro Microsystems' current 3-Year ROIIC % is -35.75. Based on the distribution chart, Allegro Microsystems ranks #784 out of 996 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Allegro Microsystems has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Microsystems' 3-Year ROIIC % compare to SIMO and SWKS?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #784 out of 996 companies for 3-Year ROIIC %. This places Allegro Microsystems in the lower 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 3-Year ROIIC % for a Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Allegro Microsystems and its competitors. Allegro Microsystems's current 3-Year ROIIC % is -35.75. 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 $29.68, compared to a current price of $46.48 — trading 56.6% above its estimated fair value. The current 3-Year ROIIC % is -35.75. Allegro Microsystems' overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current 3-Year ROIIC % is -35.75 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 $46.48 is trading 56.6% above its estimated GF Value™ of $29.68.
GuruFocus considers Allegro Microsystems to be Significantly Overvalued.
Key valuation signals for ALGM:
3-Year ROIIC %: -35.75
GF Value™: $29.68 vs. price of $46.48 (56.6% 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.
77GF Score
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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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