Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs for sensing, motion control, and power manageme…
Screened 2026-09-11 · the tape above runs as of 13:00 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its markdown label.
Allegro MicroSystems, Inc. holds its Markdown at $36.31. The statistical read favours the sellers, held for 17 days.
As held on the ledger · 2026-09-11
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 17 days
Price at the screen
$36.31
Valuation
518.71 trailing · 24.60 forward price to earnings
Values screen
PASS· score 70.0
Beta
1.91
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
21.60%
Below 33%
Interest-bearing debt is just 21.6% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
18.50%
Below 49%
Money owed to the company is 18.5% of assets, under the 49% limit.
Pass
Revenue purity
0.09%
Below 5%
Only 0.1% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-11 screen. The gold marker is the market price at the same screen. The price runs 7.1% above the base estimate.
Third-party analyst targets: 11 covering, consensus Strong Buy. The average target sits +51% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-11 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Sensors in every machine but priced for perfection
Every car or factory line that needs precise motion or power control relies on chips like these to turn physical signals into reliable data. Allegro has built real revenue momentum at 26% growth, yet the business is losing money with margins and returns both at minus 2%. At 31 times forward earnings the shares sit well above our fair value, leaving no margin of safety and an opportunity rating of none.
The ethical screen is cleared, which removes one layer of concern. Even so, the combination of negative profitability and a stretched multiple in a cyclical semiconductor market points to a classic trap where peak-cycle numbers flatter the valuation. Revenue can swing sharply with auto and industrial demand, and current losses show the downside is already visible.
Analyst targets sit higher, but those forecasts often ignore how quickly margins compress when volumes turn. The gap between price and our value simply reflects that reality rather than any overlooked strength. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
ALGM trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 8.7% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 54% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 34%. The street (12 analysts) rates it strong buy, with a mean price target of $54.
2026-07-21Markup$46.48-7.8%Entry 5
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 7.8% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A. Technically it is holding around 54% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 34%. The street (12 analysts) rates it strong buy, with a mean price target of $54.
2026-07-18Markup$50.41+0.0%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A. Technically it is holding around 54% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 34%. The street (12 analysts) rates it strong buy, with a mean price target of $54.
2026-07-17Markup$50.41+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A. Technically it is holding around 54% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 34%. The street (12 analysts) rates it strong buy, with a mean price target of $54.
2026-07-03Markup$50.41+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markup$50.41Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.