Is the business good?
How good a business is ALGM?
Allegro MicroSystems, Inc. earns 1.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
1.4%
Return on invested capital · cost of capital 9.0% · 7.6 points below what the capital costs: growth destroys value
- Operating margin
- 2.1%
Operating margin · Semiconductors median 8.5% · 12 months to Q4 2026
- R&D as % of revenue
- 23%
R&D as % of revenue
- Gross margin
- 46%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 2.1% |
| FY2022 | 18% |
| FY2023 | 21% |
| FY2024 | 19% |
| FY2025 | −2.7% |
| FY2026 | 2.1% |
Details›
- Gross margin12 months to Q4 2026
- 46%
- Operating margin12 months to Q4 2026
- 2.1%
- Net margin12 months to Q4 2026
- −1.7%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $890M
- Free cash flow, trailing twelve months
- $125M
- Net income, trailing twelve months
- −$15M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 1.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.