Is ALLEGRO MICROSYSTEMS, INC. (ALGM) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.2% / 30% | 2.1% / 30% | 1.4% / 30% | 0.21% / 5% | ✓ HALAL |
| DJIM | 6.2% / 33% | 2.1% / 33% | 1.4% / 33% | 0.21% / 5% | ✓ HALAL |
| MSCI | 25.9% / 33% | 8.5% / 33% | 6.0% / 33% | 0.21% / 5% | ✓ HALAL |
| S&P | 6.2% / 33% | 2.1% / 33% | 1.4% / 33% | 0.21% / 5% | ✓ HALAL |
| FTSE | 25.9% / 33% | 8.5% / 33% | 6.0% / 50% | 0.21% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 45.1% | |
| Operating Margin | 4.2% | |
| Net Margin | -1.6% | |
| Return on Equity (ROE) | -1.4% | |
| Return on Assets (ROA) | 0.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $62M |
| Free Cash Flow | $21M |
| Total Debt | $368M |
| Debt-to-Equity | 32.0 |
| Current Ratio | 3.7 |
| Total Assets | $1.4B |
Price & Trading
| Last Close | $31.23 |
| 50-Day MA | $35.39 |
| 200-Day MA | $31.43 |
| Avg Volume | 2.5M |
| Beta | 1.7 |
|
52-Week Range
$16.38
| |
About ALLEGRO MICROSYSTEMS, INC. (ALGM)
Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, such as regulator, power management ICs, and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire.
Purification Calculator
As a halal stock with 0.21% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ALLEGRO MICROSYSTEMS, INC. (ALGM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ALLEGRO MICROSYSTEMS, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ALLEGRO MICROSYSTEMS, INC.'s debt ratio?
ALLEGRO MICROSYSTEMS, INC.'s debt ratio is 6.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.9%.
Does ALLEGRO MICROSYSTEMS, INC. require dividend purification?
Yes, ALLEGRO MICROSYSTEMS, INC. has an impermissible income ratio of 0.21%, which means 0.21% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ALLEGRO MICROSYSTEMS, INC.'s key financial metrics?
ALLEGRO MICROSYSTEMS, INC. has a market capitalization of $5.6B, and revenue of $725M. The company maintains a gross margin of 45.1% and a net margin of -1.6%. Return on equity stands at -1.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.