Allegro MicroSystems (ALGM): Evaluating Valuation After Strong Earnings, Upbeat Guidance, and Product Innovation

Simply Wall St.11-02

Allegro MicroSystems (ALGM) captured attention after releasing quarterly results that showed a return to profitability, 14% year-over-year revenue growth, and fresh guidance that topped what most on ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2580281534?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8212000-choice1-main-header/1585186704996","is_english":true,"pubTime":"2025-11-02 18:42","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2580281534","market":"nz","top_or_hot":-1,"title":"Allegro MicroSystems (ALGM): Evaluating Valuation After Strong Earnings, Upbeat Guidance, and Product Innovation","media":"Simply Wall St.","content":"<div>\n<p>Allegro MicroSystems (ALGM) captured attention after releasing quarterly results that showed a return to profitability, 14% year-over-year revenue growth, and fresh guidance that topped what most on ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-algm/allegro-microsystems/news/allegro-microsystems-algm-evaluating-valuation-after-strong\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Allegro MicroSystems (ALGM): Evaluating Valuation After Strong Earnings, Upbeat Guidance, and Product Innovation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAllegro MicroSystems (ALGM): Evaluating Valuation After Strong Earnings, Upbeat Guidance, and Product Innovation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-02 18:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-algm/allegro-microsystems/news/allegro-microsystems-algm-evaluating-valuation-after-strong><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Allegro MicroSystems (ALGM) captured attention after releasing quarterly results that showed a return to profitability, 14% year-over-year revenue growth, and fresh guidance that topped what most on ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-algm/allegro-microsystems/news/allegro-microsystems-algm-evaluating-valuation-after-strong\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ALGM","symbol_name":"Allegro MicroSystems, Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-algm/allegro-microsystems/news/allegro-microsystems-algm-evaluating-valuation-after-strong","article_id":"2580281534","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8212000-choice1-main-header/1585186704996"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-algm/allegro-microsystems/news/allegro-microsystems-algm-evaluating-valuation-after-strong","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2580281534","pubTimestamp":1762080136,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Allegro MicroSystems (ALGM) captured attention after releasing quarterly results that showed a return to profitability, 14% year-over-year revenue growth, and fresh guidance that topped what most on Wall Street were expecting.\nSee our latest analysis for Allegro MicroSystems.\nAllegro’s shares have captured fresh momentum this year, driven by strong e-Mobility and industrial demand, product launches, and solid earnings outperformance. With a year-to-date share price return of 31% and a robust...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ALGM":"Allegro MicroSystems, Inc."},"translate_title":"Allegro MicroSystems(ALGM)：在强劲盈利、乐观指引和产品创新后评估估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALGM":1.5},"content_text":"Allegro MicroSystems (ALGM) captured attention after releasing quarterly results that showed a return to profitability, 14% year-over-year revenue growth, and fresh guidance that topped what most on Wall Street were expecting. See our latest analysis for Allegro MicroSystems. Allegro’s shares have captured fresh momentum this year, driven by strong e-Mobility and industrial demand, product launches, and solid earnings outperformance. With a year-to-date share price return of 31% and a robust 41.8% total shareholder return over 12 months, both short-term and long-term performance signal growing optimism about its growth runway and operational discipline. If Allegro’s upswing has you wondering what else is gaining traction, now is a great chance to broaden your investing horizons and discover See the full list for free. With shares climbing after a string of earnings beats and upbeat guidance, the key question for investors now is clear: Is Allegro MicroSystems trading below its fair value, or is future growth already fully priced in? AdvertisementMost Popular Narrative: 18.6% Undervalued According to the most widely followed narrative, Allegro MicroSystems appears attractively priced compared to its fair value estimate of $36.75, with shares last closing at $29.92. This perspective sets up a debate on the pace and durability of its earnings surge.  Ongoing investments and recent improvements in proprietary manufacturing and test yield (notably in TMR sensor ICs) are translating to cost reductions and enhanced gross margins. This is expected to continue as product differentiation and scale improve, which would positively impact net margins.  Read the complete narrative. Want to know why the math points higher? This valuation relies on Allegro’s ability to supercharge profits and margins far beyond today’s baseline. The secret ingredients include bold revenue bets, significant margin assumptions, and a future multiple that rivals industry titans. Discover what is fueling the fair value calculation in the full narrative. Result: Fair Value of $36.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, intensifying competition in China and Allegro’s reliance on automotive demand could create challenges for the company’s growth assumptions and may put pressure on future margins. Find out about the key risks to this Allegro MicroSystems narrative. Another View: Market Ratios Raise a Red Flag Looking at Allegro MicroSystems through the lens of its sales ratio reveals a different picture. The company's ratio sits at 7x, noticeably higher than the US Semiconductor industry average of 5.3x and its peer average of 12.3x. While this premium could highlight optimism about growth, it also introduces valuation risk if future performance disappoints. Is the current price justified, or might the market eventually expect this ratio to shift closer to the fair ratio of 5.2x? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:ALGM PS Ratio as at Nov 2025 Build Your Own Allegro MicroSystems Narrative If these views don't fit your take or you like to crunch numbers personally, dive into the data and develop your own perspective with just a few clicks. Do it your way A great starting point for your Allegro MicroSystems research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Looking for More Investment Ideas? Smart investors know that opportunity favors the bold. Uncover powerful trends and stay ahead of the crowd by taking action with these handpicked stock ideas:  Unlock growth potential by checking out these 28 quantum computing stocks. These are transforming tech with quantum innovation. Boost your portfolio's income with these 22 dividend stocks with yields > 3%. These offer yields above 3% and reliable cash returns. Get early access to promising companies through these 3590 penny stocks with strong financials with exceptional financial strength before they hit the spotlight.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"productRelease","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2580281534","isCrawlerRequest":true}