ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLE - IE00BFRT3W74 - Common Stock
162.87 USD
+3.42 (+2.14%)
162.87 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ALLE. ALLE was compared to 41 industry peers in the Building Products industry. ALLE scores excellent on profitability, but there are some minor concerns on its financial health. ALLE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALLE was profitable.
ALLE had a positive operating cash flow in the past year.
Each year in the past 5 years ALLE has been profitable.
In the past 5 years ALLE always reported a positive cash flow from operatings.
1.2 Ratios
ALLE's Return On Assets of 12.25% is amongst the best of the industry. ALLE outperforms 80.49% of its industry peers.
ALLE has a better Return On Equity (32.87%) than 87.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.30%, ALLE belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 32.87% | ||
| ROIC | 16.3% |
ROA(3y)12.44%
ROA(5y)12.68%
ROE(3y)43.15%
ROE(5y)46.19%
ROIC(3y)18.02%
ROIC(5y)18.47%
1.3 Margins
ALLE's Profit Margin of 16.08% is amongst the best of the industry. ALLE outperforms 87.80% of its industry peers.
In the last couple of years the Profit Margin of ALLE has grown nicely.
Looking at the Operating Margin, with a value of 20.98%, ALLE belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
ALLE's Operating Margin has been stable in the last couple of years.
ALLE has a Gross Margin of 45.12%. This is amongst the best in the industry. ALLE outperforms 92.68% of its industry peers.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.98% | ||
| PM (TTM) | 16.08% | ||
| GM | 45.12% |
OM growth 3Y4.04%
OM growth 5Y0.9%
PM growth 3Y-2%
PM growth 5Y2.4%
GM growth 3Y1.72%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALLE is creating value.
ALLE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALLE has been reduced compared to 5 years ago.
Compared to 1 year ago, ALLE has an improved debt to assets ratio.
2.2 Solvency
ALLE has an Altman-Z score of 4.51. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.51, ALLE is doing good in the industry, outperforming 60.98% of the companies in the same industry.
The Debt to FCF ratio of ALLE is 3.07, which is a good value as it means it would take ALLE, 3.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.07, ALLE is doing good in the industry, outperforming 60.98% of the companies in the same industry.
ALLE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
ALLE has a worse Debt to Equity ratio (1.06) than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.51 |
ROIC/WACC2.27
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.77 indicates that ALLE should not have too much problems paying its short term obligations.
The Current ratio of ALLE (1.77) is comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that ALLE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, ALLE perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.66% over the past year.
ALLE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.02% yearly.
ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)9.66%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%6.48%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%10.66%
3.2 Future
The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y10.85%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
EPS Next 5Y9.33%
Revenue Next Year8.07%
Revenue Next 2Y7.31%
Revenue Next 3Y6.48%
Revenue Next 5Y8.39%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.21, ALLE is valued on the expensive side.
ALLE's Price/Earnings is on the same level as the industry average.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.96, ALLE is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE is on the same level as its industry peers.
ALLE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALLE is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, ALLE is valued a bit cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 16.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALLE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)2.24
EPS Next 2Y9.75%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.39, ALLE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ALLE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of ALLE is nicely growing with an annual growth rate of 12.34%!
ALLE has paid a dividend for at least 10 years, which is a reliable track record.
ALLE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.34%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
ALLE pays out 26.88% of its income as dividend. This is a sustainable payout ratio.
ALLE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.88%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
162.87
+3.42 (+2.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change0.77%
Ins Owners0.25%
Ins Owner Change-2.14%
Market Cap13.98B
Revenue(TTM)3.98B
Net Income(TTM)640.00M
Analysts73.68
Price Target186.86 (14.73%)
Short Float %3.05%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP26.88%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.29%
Min EPS beat(2)0.6%
Max EPS beat(2)1.99%
EPS beat(4)4
Avg EPS beat(4)3.96%
Min EPS beat(4)0.6%
Max EPS beat(4)9.12%
EPS beat(8)8
Avg EPS beat(8)4.44%
EPS beat(12)12
Avg EPS beat(12)6.14%
EPS beat(16)16
Avg EPS beat(16)6.13%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)0%
Max Revenue beat(2)0.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)3
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)-0.02%
PT rev (1m)5.05%
PT rev (3m)7.78%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0.52%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 17.96 | ||
| P/S | 3.51 | ||
| P/FCF | 20.56 | ||
| P/OCF | 18.33 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.05 |
EPS(TTM)8.06
EY4.95%
EPS(NY)9.07
Fwd EY5.57%
FCF(TTM)7.92
FCFY4.86%
OCF(TTM)8.89
OCFY5.46%
SpS46.36
BVpS22.67
TBVpS-9.21
PEG (NY)1.86
PEG (5Y)2.24
Graham Number64.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 32.87% | ||
| ROCE | 18.84% | ||
| ROIC | 16.3% | ||
| ROICexc | 17.5% | ||
| ROICexgc | 51.9% | ||
| OM | 20.98% | ||
| PM (TTM) | 16.08% | ||
| GM | 45.12% | ||
| FCFM | 17.09% |
ROA(3y)12.44%
ROA(5y)12.68%
ROE(3y)43.15%
ROE(5y)46.19%
ROIC(3y)18.02%
ROIC(5y)18.47%
ROICexc(3y)20.57%
ROICexc(5y)21.63%
ROICexgc(3y)65.21%
ROICexgc(5y)63.66%
ROCE(3y)20.82%
ROCE(5y)21.34%
ROICexgc growth 3Y-1.18%
ROICexgc growth 5Y-4.12%
ROICexc growth 3Y-2.57%
ROICexc growth 5Y-2.41%
OM growth 3Y4.04%
OM growth 5Y0.9%
PM growth 3Y-2%
PM growth 5Y2.4%
GM growth 3Y1.72%
GM growth 5Y0.16%
F-Score9
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 64.34% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.15% | ||
| Profit Quality | 106.25% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.51 |
F-Score9
WACC7.18%
ROIC/WACC2.27
Cap/Depr(3y)72.56%
Cap/Depr(5y)66.09%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2%
Profit Quality(3y)93.2%
Profit Quality(5y)102.47%
High Growth Momentum
Growth
EPS 1Y (TTM)9.66%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%6.48%
EPS Next Y10.85%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
EPS Next 5Y9.33%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%10.66%
Revenue Next Year8.07%
Revenue Next 2Y7.31%
Revenue Next 3Y6.48%
Revenue Next 5Y8.39%
EBIT growth 1Y7.83%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year26.63%
EBIT Next 3Y13.04%
EBIT Next 5Y11.21%
FCF growth 1Y38.69%
FCF growth 3Y9.57%
FCF growth 5Y6.65%
OCF growth 1Y33.04%
OCF growth 3Y11.37%
OCF growth 5Y6.69%
ALLEGION PLC / ALLE FAQ
Can you provide the ChartMill fundamental rating for ALLEGION PLC?
ChartMill assigns a fundamental rating of 7 / 10 to ALLE.
What is the valuation status for ALLE stock?
ChartMill assigns a valuation rating of 4 / 10 to ALLEGION PLC (ALLE). This can be considered as Fairly Valued.
What is the profitability of ALLE stock?
ALLEGION PLC (ALLE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ALLE stock?
The Price/Earnings (PE) ratio for ALLEGION PLC (ALLE) is 20.21 and the Price/Book (PB) ratio is 7.19.
What is the financial health of ALLEGION PLC (ALLE) stock?
The financial health rating of ALLEGION PLC (ALLE) is 6 / 10.