Allegro MicroSystems vs Semtech
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KIRA’s take AI analyst
I put Allegro MicroSystems and Semtech side by side, using each one’s latest annual report. Here is what stands out:
- Semtech is the larger business, with $1.1B of revenue in fiscal 2026 against $890M for Allegro MicroSystems.
- Allegro MicroSystems grew revenue faster (22.8%, against 15.5%).
- Semtech kept more of each dollar of sales as operating profit (3.1% operating margin, against 2.1%).
- Semtech turned more of its sales into free cash flow (16.3% FCF margin, against 14.0%).
- Semtech earned a higher return on the capital invested in it (2.9%, against 1.3%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Allegro MicroSystems
ALGM
5/11
Revenue growthNet marginReturn on equityNet debt / EBITDAShare count change
Semtech
SMTC
5/11
5-year growthGross marginOperating marginFCF marginReturn on capital
Side by side
Best in the row
| Latest fiscal year | ALGM FY26 | SMTC FY26 |
|---|---|---|
| Size | ||
| Market cap | $5.9B | $12.9B |
| Revenue | $890M | $1.1B |
| Free cash flow | $125M | $171M |
| Net income | −$14.9M | −$40.4M |
| Growth | ||
| Revenue growth | 22.8% | 15.5% |
| 5-year growth | 8.5% | 12.0% |
| Share count change | −1.4% | 23.4% |
| Profitability | ||
| Gross margin | 46.3% | 51.6% |
| Operating margin | 2.1% | 3.1% |
| Net margin | −1.7% | −3.9% |
| FCF margin | 14.0% | 16.3% |
| Return on capital | 1.3% | 2.9% |
| Return on equity | −1.6% | −7.4% |
| Balance sheet | ||
| Net debt | $119M | $296M |
| Net debt / EBITDA | 1.4x | 4.7x |
| Dividends and buybacks | $0.0M | $0.0M |
| Valuation & quality | ||
| P/E | — | — |
| Piotroski F-score | 7 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.