📊 AI Stock Rating — Summary

Allegro Microsystems reported Q3 2025 revenue of $214.3 million and net income of $6.5 million, resulting in an EPS of $0.04. The company delivered a free cash flow of $13.9 million. Year-over-year growth appears moderate but stable. Allegro maintains a healthy balance sheet with $1.38 billion in assets and $947 million in equity against $438 million in liabilities, resulting in $170 million in net debt. Operating cash flow was strong at $20.4 million, reflecting robust cash generation capability, though it underwent a slight debt repayment of $25.3 million. The company did not conduct any stock repurchases or dividend payments in the quarter. Analyst price targets range from $35 to $49, with a consensus of $41.33 suggesting potential valuation upside. Overall, Allegro's consistent revenue stream and solid balance sheet underpin its stability, but the absence of dividends or buybacks affects immediate shareholder value. Nevertheless, analyst sentiment remains cautiously optimistic. Continued revenue growth and enhanced profitability are key to future stock performance.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue grew moderately to $214.3 million. The trend seems stable, underpinned by core business operations.

Profitability — Score: 6/10

Profit margins are modest with a net income of $6.5 million and an EPS of $0.04, indicating moderate profitability.

Cash Flow Quality — Score: 7/10

Free cash flow stood at $13.9 million. Operating cash flow solid at $20.4 million, indicating effective cash management.

Leverage & Balance Sheet — Score: 8/10

Strong balance sheet with $947 million in equity and $170 million in net debt, ensuring financial resilience.

Shareholder Returns — Score: 5/10

No dividends or buybacks. With no data on the 1-year price change, the score reflects an average baseline assumption pending further details.

Analyst Sentiment & Valuation — Score: 7/10

Positive analyst sentiment with median price targets suggesting potential upside from current valuations.

⚠ AI-generated — informational only, not financial advice.