Allegro MicroSystems, Inc. ranks below the peer group median, with strong valuation offset by weak profitability.
Peer-relative scores, weakest to strongest
Allegro MicroSystems designs and manufactures semiconductor sensors and power ICs, serving automotive and industrial customers worldwide.
ALGM is priced as a structural beneficiary, not a peer laggard. The market assigns a premium based on rapid revenue growth in data center and automotive segments, even as the operating margin of 13.2% remains well below the sector median. Rather than rewarding core business strength, the market currently prices ALGM for short-term momentum, particularly due to its exposure to AI and EV demand. However, the premium reflects that ALGM is still seen as operationally weaker than direct semiconductor peers—evidenced by its 1Y volatility of 54.8%, which ranks in the top decile among peers and signals elevated sector risk. This momentum-driven pricing means the market is quick to penalize any sign of slowed growth, with a single quarter enough to trigger a sharp rerating.
Break down ALGM's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.