ALGM · Technology(semiconductors & related devices) · 8 years of annual accounts filed with the SEC · latest fiscal year ended 2026-03-27
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Allegro Microsystems, Inc. reported revenue of $890.1 million in fiscal 2026. Of the $958.0 million its operations generated over 8 years, 89.1% went to buybacks and 47.4% to acquisitions; the share count rose 1750.4%. On the accounting screens, it passes 7 of 9 Piotroski tests, its Altman Z'' of 3.77 is in the safe zone and its Beneish M-score is below the -1.78 line; 2 of the six cross-checks between its statements fire.
Revenue, fiscal 2026890.1M
Operating margin2.1%gross margin 46.3%
Return on invested capital1.5%8.9% on average over 5 years
Free cash flow after stock pay77.0M8.6% of revenue
Net debt ÷ EBITDA1.4×net debt 118.5M
Piotroski F-score7/9tests of improvement passed
Share counts are in today's shares. The SEC's filings restate only recent years after a split, so these jumps were read as splits and the older years scaled to match — otherwise per-share figures would compare different units:
20-for-1 before fiscal 2020.
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
-0.5B00.5B1.0B1.5B
2019
2020Revenue 650.1MOperating income 52.8M
2021Revenue 591.2MOperating income 12.2M
2022Revenue 768.7MOperating income 136.7M
2023Revenue 973.7MOperating income 203.3M
2024Revenue 1.0BOperating income 196.2M
2025Revenue 725.0MOperating income -19.8M
2026Revenue 890.1MOperating income 18.5M
20192020202120222023202420252026
Compound growth a year
3 yrs
5 yrs
7 yrs
Revenue
-2.9%
+8.5%
—
Operating income
-55.0%
+8.7%
—
Free cash flow per share
+4.8%
+8.3%
—
Shares
-1.5%
+1.0%
+51.7%
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
Return on invested capitalCost of capital today · 9.7%
-10%0%10%20%30%
2019
2020Return on invested capital 5.4%
2021Return on invested capital 28.8%
2022Return on invested capital 15.3%
2023Return on invested capital 18.2%
2024Return on invested capital 11.1%
2025Return on invested capital -1.8%
2026Return on invested capital 1.5%
20192020202120222023202420252026
Economic profit
Economic profit
-200M-100M0100M200M
2019
2020Economic profit -28.5M
2021Economic profit 117.0M
2022Economic profit 42.8M
2023Economic profit 84.7M
2024Economic profit 20.4M
2025Economic profit -145.9M
2026Economic profit -101.1M
20192020202120222023202420252026
(return on capital − cost of capital) × capital invested: the profit left after paying for the money used. Today's cost of capital is applied to every year, since a past one cannot be rebuilt honestly.
Return on equity
-1.6%
Return on assets
-1.1%
Asset turnover
0.63×
Research & development
23.1% of revenue
Overheads (SG&A)
20.3% of revenue
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
-100M0100M200M
2019
2020Net income 37.0MFree cash flow 35.8MAfter stock-based pay 34.4M
2021Net income 18.0MFree cash flow 79.9MAfter stock-based pay 30.0M
2022Net income 119.4MFree cash flow 86.2MAfter stock-based pay 52.6M
2023Net income 187.4MFree cash flow 113.4MAfter stock-based pay 51.6M
2024Net income 152.7MFree cash flow 56.9MAfter stock-based pay 14.5M
2025Net income -73.0MFree cash flow 22.0MAfter stock-based pay -19.9M
2026Net income -14.9MFree cash flow 124.9MAfter stock-based pay 77.0M
20192020202120222023202420252026
Where 8 years of operating cash went, 2019–2026
958.0M generated by the business. Each band is its share of that total.
Reinvested in the business 46%438.9M
Acquisitions 47%454.5M
Dividends 42%400.0M
Share buybacks 89%853.9M
More than it generated: funded with cash or new debt -124%-1.2B
Over the same years it paid 278.9M in stock. The share count rose 1750.4%. 575.0M of the buybacks went beyond offsetting that dilution.
Per share
Earnings per shareFree cash flow per shareDividend per share
-$2$0$2$4
2019
2020Earnings per share $3.70Free cash flow per share $3.58Dividend per share $0.00
2021Earnings per share $0.10Free cash flow per share $0.45Dividend per share $2.27
2022Earnings per share $0.62Free cash flow per share $0.45Dividend per share $0.00
2023Earnings per share $0.97Free cash flow per share $0.59Dividend per share $0.00
2024Earnings per share $0.78Free cash flow per share $0.29
2025Earnings per share $-0.39Free cash flow per share $0.12
2026Earnings per share $-0.08Free cash flow per share $0.67
20192020202120222023202420252026
Shares outstanding
Diluted shares
050M100M150M200M
2019Diluted shares 10.0M
2020Diluted shares 10.0M
2021Diluted shares 176.4M
2022Diluted shares 191.8M
2023Diluted shares 193.7M
2024Diluted shares 194.7M
2025Diluted shares 187.7M
2026Diluted shares 185.0M
20192020202120222023202420252026
Debt and liquidity
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt
-400M-200M0200M400M
2019
2020Net debt -171.5M
2021Net debt -172.2M
2022Net debt -257.4M
2023Net debt -326.6M
2024Net debt 41.4M
2025Net debt 224.8M
2026Net debt 118.5M
20192020202120222023202420252026
Net debt ÷ EBITDA
1.4×
Interest coverage
1× operating income ÷ interest
Current ratio
3.45 current assets ÷ current liabilities
Cash conversion cycle
— collects in 38d
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
7of 9 tests passed
✕ProfitableReturn on assets above zerofailed
✓Cash from operationsOperating cash flow above zeropassed
✓Profitability improvedReturn on assets higher than a year beforepassed
✓Profit backed by cashOperating cash flow above net income (low accruals)passed
✓Less long-term debtLong-term debt as a share of assets fellpassed
✕More liquidCurrent ratio higher than a year beforefailed
✓No new sharesShare count did not growpassed
✓Better gross marginGross margin higher than a year beforepassed
✓Sells more per assetAsset turnover higher than a year beforepassed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
3.77safe zone
1.12.6
Working capital ÷ assets 0.25 × 6.56+1.66
Retained earnings ÷ assets -0.05 × 3.26-0.16
Operating income ÷ assets 0.01 × 6.72+0.09
Equity ÷ liabilities 2.08 × 1.05+2.18
Where it misleads: buybacks. A company that returns so much cash that its equity turns small or negative sinks the last two ratios without being anywhere near bankruptcy. Banks and insurers do not fit the model at all.
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
-2.97below the -1.78 line
-1.78
Receivables vs sales 0.90+0.83
Gross margin slipping 0.96+0.51
Soft assets 0.95+0.39
Sales growth 1.23+1.10
Slower depreciation 0.98+0.11
Overheads vs sales 0.91-0.16
Profit not in cash -0.13-0.59
Leverage rising 0.95-0.31
Where it misleads: fast growth and acquisitions. Sales growth carries a heavy weight, so a company growing 50% a year scores like a suspect without having done anything. It is a screen from a 1999 study, not an accusation.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
Capital spending (38M) is well below depreciation (68M).
Benign
Mature assets, or a business that has become less capital-intensive.
Worrying
Under-investing: today's profit is being held up by consuming tomorrow's capacity.
The effective tax rate is -1.7%.
Benign
A favourable geographic mix, or legitimate tax credits.
Worrying
Not sustainable; projecting it forward inflates the valuation.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
Value per share, with these assumptions$-0.44discounted at 9.7% a year · 53% of it from after year 10
Type a share price on the left to ask the reverse questions: what growth, what margin or what discount rate that price implies.
What the value implies, in the usual multiples
At this model's value
Price ÷ earnings
—
Enterprise value ÷ EBITDA
0.4×
Enterprise value ÷ revenue
0.0×
Free cash flow yield
—
From cash flows to a value per share
10 years of cash flow, today17.1M
Everything after, today19.4M
The whole business36.4M
Minus net debt-118.5M
What belongs to shareholders-82.1M
Divided among 185.0M shares: <strong>$-0.44</strong> each.
The projection next to its history
Reported free cash flow after stock pay, then the model's. A projection that looks nothing like the past needs a reason.
ReportedProjected
-25M025M50M75M100M
2019
2020Reported 34.4M
2021Reported 30.0M
2022Reported 52.6M
2023Reported 51.6M
2024Reported 14.5M
2025Reported -19.9M
2026Reported 77.0M
2027Projected 2.2M
2028Projected 2.3M
2029Projected 2.5M
2030Projected 2.7M
2031Projected 2.8M
2032Projected 3.0M
2033Projected 3.1M
2034Projected 3.2M
2035Projected 3.3M
2036Projected 3.4M
201920212023202520272029203120332035
Year by year
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Revenue
965.8M
1.0B
1.1B
1.2B
1.3B
1.3B
1.4B
1.4B
1.5B
1.5B
Growth
8.5%
7.8%
7.2%
6.5%
5.8%
5.2%
4.5%
3.8%
3.2%
2.5%
Cash margin
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
Free cash flow
2.2M
2.3M
2.5M
2.7M
2.8M
3.0M
3.1M
3.2M
3.3M
3.4M
Worth today
2.0M
1.9M
1.9M
1.8M
1.8M
1.7M
1.6M
1.5M
1.4M
1.4M
If the least-known inputs move
Value per share as two inputs change at a time. Neighbouring cells that differ a lot are the conclusion: the value depends on numbers nobody knows to a point.
The discount rate and growth forever
discount ↓ · forever →
1.5%
2.0%
2.5%
3.0%
3.5%
8.6%
-0
-0
-0
-0
-0
9.2%
-0
-0
-0
-0
-0
9.7%
-0
-0
-0
-0
-0
10.2%
-0
-0
-0
-0
-0
10.7%
-0
-0
-0
-0
-0
Year-one growth and the final margin
margin ↓ · growth →
4.5%
6.5%
8.5%
10.5%
12.5%
0.2%
-0
-0
-0
-0
-0
0.2%
-0
-0
-0
-0
-0
0.2%
-0
-0
-0
-0
-0
0.2%
-0
-0
-0
-0
-0
0.3%
-0
-0
-0
-0
-0
All the inputs moving at once
5,000 valuations, each with growth, final margin, discount rate and growth forever drawn at random around the values on the left (spreads of 3.0%, 2.0%, 1.0% and 0.5%). Not a probability — the spreads are assumptions too — but an honest picture of how wide the answer is.
10th percentile$-2.21
Median$-0.43
90th percentile$1.33
$-4.00$-2.00$0.00$2.00
Half of the simulations land between <b>$-1.33</b> and <b>$0.50</b>; one in ten below $-2.21, one in ten above $1.33.
Does the long run make sense?
0.3×The terminal value prices the business in year 10 at 0.3 times that year's EBITDA.
3%To grow 2.5% forever while reinvesting 89% of its after-tax operating profit, the business must earn 3% on the new capital — it has earned 9% on average over the last five years.
53%of the value comes from after year 10. The more of it, the more the answer depends on the part nobody can see.
Every Form 4 filed in the last twelve months, read line by line: 6 filings by 6 people. Open-market purchases and sales are counted apart from awards, option exercises and shares withheld for taxes.
Bought on the open market—none in the period
Sold on the open market$146,7512 sale(s) by 2 insider(s)
Under pre-arranged plans0%of the sales followed a 10b5-1 plan set months earlier
A Form 4 says what happened, when, how many shares and at what price. It does not say why: a sale can be diversification, a tax bill or a plan fixed months earlier, and an award is pay, not a purchase. Nothing here is a reason to buy or sell anything.
Which large funds report holding it
From the Form 13F of the 28 institutions followed on this site, as of the end of their last reported quarter. A 13F is filed up to 45 days later and shows only long positions in US-listed shares.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
