Does Allegro MicroSystems, Inc. have an economic moat?

Based on its FY2026 SEC filings, the Moat Index scores Allegro MicroSystems, Inc. (ALGM) 40.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 70, returns on capital 28, balance-sheet safety 36, capital discipline 20.

Is ALGM stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $7.16 per share versus a recent price of $46.48 — 549% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has ALGM's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 40.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Allegro MicroSystems, Inc.

ALGM · Technology · $8.6B mkt cap · FY2026 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power70

Median gross margin 47.2% over 7y, stable.

Returns on capital28

Median ROIC 8.0%, above the 9% hurdle in 43% of years.

Balance-sheet safety36

Net debt/EBITDA 1.4x, interest coverage 1x.

Capital discipline20

Owner earnings -20.0%/yr, share count n/a.

Margin of safety

Above valueOn sale

549% above value

Owner earnings (normalized): $119.4M
Est. intrinsic value / share: $7.16
Recent price: $46.48
Discount to value: 549% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

8 years of fundamentals

The business, in plain English

Allegro MicroSystems, Inc. booked $890.1M of revenue in FY2026 in the Technology sector and kept 46.3% of it as gross profit — a solid-margin business by that measure. After every other cost, −1.7% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $650.1M (FY2020) to $890.1M (FY2026) — about 5.4% a year compounded over 6 years.

It earned 1.4% on invested capital in FY2026, with a median of 8.0% across 7 filed years. The Returns on Capital filter above scores it 28/100.

The balance sheet carried $287.3M of total debt in FY2026 against $14.5M of owner earnings — roughly 19.8 years of owner earnings to retire it all. Balance-Sheet Safety scores it 36/100.

Put together: Pricing Power is the strongest of the four filters (70/100) and Capital Discipline the weakest (20/100), which is how ALGM lands at 41/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$890.1M FY2026

Gross marginRevenue kept after cost of goods46.3% FY2026

Return on invested capitalOperating profit on the capital employed1.4% FY2026

Owner earningsCash an owner could take out$14.5M FY2026

Gaps in a line mean that item isn’t in ALGM’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale40.6 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — ALGM has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#308 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#306RGTI Rigetti Computing, Inc.40.8 out of 100, Shallow moatShallow moat
#307BGSF BGSF, INC.40.7 out of 100, Shallow moatShallow moat
#309BL BlackLine, Inc.40.6 out of 100, Shallow moatShallow moat
#310CNXC CONCENTRIX CORPORATION40.6 out of 100, Shallow moatShallow moat

Compare ALGM with its nearest peers →All Technology companies on the Index →

Common questions about ALGM

Does Allegro MicroSystems, Inc. have an economic moat?: Based on its FY2026 SEC filings, the Moat Index scores Allegro MicroSystems, Inc. (ALGM) 40.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 70, returns on capital 28, balance-sheet safety 36, capital discipline 20.
Is ALGM stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $7.16 per share versus a recent price of $46.48 — 549% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has ALGM's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 40.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell ALGM. See the disclaimer.