Allegro MicrosystemsALGM +13.11%73 Altman Z-Score is 16.80 as of Jun. 29, 2026, which is 16% above its 10-year median of 14.50. GuruFocus rates ALGM with a GF Score™ of 73/100 and a GF Value™ of $29.28 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,014 Semiconductors companies, Allegro Microsystems ranks better than 77.51% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 14.96 is strong.
Allegro Microsystems has a Altman Z-Score of 16.80, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Allegro Microsystems's Altman Z-Score or its related term are showing as below:
ALGM'
s Altman Z-Score Range Over the Past 10 Years
Min: 6.31 Med: 14.5 Max: 28.06
Current: 14.96
During the past 8 years, Allegro Microsystems's highest Altman Z-Score was 28.06. The lowest was 6.31. And the median was 14.50.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Allegro Microsystems Altman Z-Score Related Terms
Allegro Microsystems Altman Z-Score Historical Data
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The historical data trend for Allegro Microsystems's Altman Z-Score 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: Altman Z-Score Comparison
For the Semiconductors subindustry, Allegro Microsystems's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Allegro Microsystems's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Allegro Microsystems's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Allegro Microsystems's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.2526
+
1.4
*
-0.0484
+
3.3
*
0.0051
+
0.6
*
26.5363
+
1.0
*
0.6285
=
16.80
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Allegro Microsystems (ALGM) has a Altman Z-Score of 16.80 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Allegro Microsystems and its competitors. This is 16% above median its historical median of 14.50. Over the past decade, Allegro Microsystems' Altman Z-Score has ranged from 6.31 to 28.06. According to the industry distribution chart, Allegro Microsystems ranks #228 out of 1014 companies in the Semiconductors industry, placing it in the top 22.5%.
Is Allegro Microsystems' Altman Z-Score too high?
Allegro Microsystems' current Altman Z-Score of 16.80 is 16% above median its 10-year median of 14.50. Over the past 10 years, this metric has ranged from a low of 6.31 to a high of 28.06. The Semiconductors industry median Altman Z-Score is 5.29. Allegro Microsystems' value of 16.80 is 217.6% above this industry median. Based on the distribution chart, Allegro Microsystems ranks #228 out of 1014 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. 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' Altman Z-Score compare to SIMO and SWKS?
According to the Semiconductors industry distribution chart, Allegro Microsystems ranks #228 out of 1014 companies for Altman Z-Score. This places Allegro Microsystems in the top 23% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 5.29. Allegro Microsystems' value of 16.80 is 217.6% above this benchmark. Historically, Allegro Microsystems' own Altman Z-Score has ranged from 6.31 to 28.06 over the past decade. While the company's 10-year median is 14.50 vs. the industry median of 5.29, Allegro Microsystems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Semiconductors company?
The median Altman Z-Score among Semiconductors companies is 5.29, based on 1,014 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allegro Microsystems's current Altman Z-Score of 16.80 is 217.6% above 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Allegro Microsystems and its competitors. For the Semiconductors industry, the median Altman Z-Score is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Microsystems's current Altman Z-Score is 16.80, which is 16% above median its own 10-year median of 14.50. 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 $29.28, compared to a current price of $65.48 — trading 123.6% above its estimated fair value. The current Altman Z-Score is 16.80, which is 16% above median its 10-year median of 14.50 and 217.6% above the Semiconductors industry median of 5.29. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Allegro Microsystems (ALGM), the current Altman Z-Score is 16.80 as of Jun. 29, 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 $65.48 is trading 123.6% above its estimated GF Value™ of $29.28.
GuruFocus considers Allegro Microsystems to be Significantly Overvalued.
Key valuation signals for ALGM:
Altman Z-Score: 16.80 (16% above median its 10-year median of 14.50)
GF Value™: $29.28 vs. price of $65.48 (123.6% above fair value)
Industry Position: 217.6% above the Semiconductors median (#228 of 1014)
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
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