ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock - Currency: USD
Overall ALLE gets a fundamental rating of 7 out of 10. We evaluated ALLE against 42 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making ALLE a very profitable company, without any liquidiy or solvency issues. ALLE has a correct valuation and a medium growth rate. These ratings could make ALLE a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ALLE was profitable.
ALLE had a positive operating cash flow in the past year.
In the past 5 years ALLE has always 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 13.63% is amongst the best of the industry. ALLE outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 38.70%, ALLE belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.90%, ALLE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.02%. This is significantly above the industry average of 12.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.63% | ||
| ROE | 38.7% | ||
| ROIC | 17.9% |
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
The Profit Margin of ALLE (16.28%) is better than 88.10% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
ALLE has a Operating Margin of 21.07%. This is amongst the best in the industry. ALLE outperforms 90.48% of its industry peers.
In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 44.49%, ALLE belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.07% | ||
| PM (TTM) | 16.28% | ||
| GM | 44.49% |
OM growth 3Y4.04%
OM growth 5Y0.9%
PM growth 3Y-2.03%
PM growth 5Y2.39%
GM growth 3Y1.72%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
ALLE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 4.65 indicates that ALLE is not in any danger for bankruptcy at the moment.
ALLE has a better Altman-Z score (4.65) than 61.90% of its industry peers.
The Debt to FCF ratio of ALLE is 3.11, which is a good value as it means it would take ALLE, 3.11 years of fcf income to pay off all of its debts.
ALLE's Debt to FCF ratio of 3.11 is fine compared to the rest of the industry. ALLE outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that ALLE has dependencies on debt financing.
The Debt to Equity ratio of ALLE (1.23) is worse than 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 4.65 |
ROIC/WACC2.49
WACC7.2%
2.3 Liquidity
A Current Ratio of 2.17 indicates that ALLE has no problem at all paying its short term obligations.
ALLE has a Current ratio (2.17) which is in line with its industry peers.
A Quick Ratio of 1.51 indicates that ALLE should not have too much problems paying its short term obligations.
The Quick ratio of ALLE (1.51) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.13% 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.
The Revenue has been growing slightly by 5.48% in the past year.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)13.13%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%20%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.37%
3.2 Future
Based on estimates for the next years, ALLE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.65% on average per year.
Based on estimates for the next years, ALLE will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y6%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
EPS Next 5Y8.65%
Revenue Next Year4.06%
Revenue Next 2Y4.38%
Revenue Next 3Y4.34%
Revenue Next 5Y7.2%
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 17.59, ALLE is valued on the expensive side.
ALLE's Price/Earnings is on the same level as the industry average.
ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 16.04, the valuation of ALLE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.40. ALLE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALLE.
ALLE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.48 | ||
| EV/EBITDA | 14.61 |
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)2.93
PEG (5Y)1.95
EPS Next 2Y6.85%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 1.20, ALLE pays a better dividend. On top of this ALLE pays more dividend than 85.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of ALLE is nicely growing with an annual growth rate of 12.34%!
ALLE has been paying a dividend for at least 10 years, so it has 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
27.09% of the earnings are spent on dividend by ALLE. This is a low number and sustainable payout ratio.
ALLE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
137.94
-1.73 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change1.68%
Ins Owners0.23%
Ins Owner Change4.61%
Market Cap11.87B
Analysts70
Price Target146.7 (6.35%)
Short Float %3.36%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP27.09%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.62%
Min EPS beat(2)4.12%
Max EPS beat(2)9.12%
EPS beat(4)4
Avg EPS beat(4)6.09%
Min EPS beat(4)4.12%
Max EPS beat(4)9.12%
EPS beat(8)8
Avg EPS beat(8)5.44%
EPS beat(12)12
Avg EPS beat(12)6.73%
EPS beat(16)15
Avg EPS beat(16)7.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.42%
Revenue beat(16)6
Avg Revenue beat(16)0.03%
PT rev (1m)5.11%
PT rev (3m)2.93%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.04 | ||
| P/S | 3.11 | ||
| P/FCF | 18.48 | ||
| P/OCF | 16.3 | ||
| P/B | 7.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.61 |
EPS(TTM)7.84
EY5.68%
EPS(NY)8.6
Fwd EY6.23%
FCF(TTM)7.47
FCFY5.41%
OCF(TTM)8.46
OCFY6.14%
SpS44.4
BVpS18.67
TBVpS-5.46
PEG (NY)2.93
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.63% | ||
| ROE | 38.7% | ||
| ROCE | 20.69% | ||
| ROIC | 17.9% | ||
| ROICexc | 20.51% | ||
| ROICexgc | 52.77% | ||
| OM | 21.07% | ||
| PM (TTM) | 16.28% | ||
| GM | 44.49% | ||
| FCFM | 16.82% |
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)20.58%
ROICexc(5y)21.64%
ROICexgc(3y)65.23%
ROICexgc(5y)63.68%
ROCE(3y)20.82%
ROCE(5y)21.34%
ROICexcg growth 3Y-1.17%
ROICexcg growth 5Y-4.11%
ROICexc growth 3Y-2.57%
ROICexc growth 5Y-2.41%
OM growth 3Y4.04%
OM growth 5Y0.9%
PM growth 3Y-2.03%
PM growth 5Y2.39%
GM growth 3Y1.72%
GM growth 5Y0.16%
F-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 71.55% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.73% | ||
| Profit Quality | 103.3% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 4.65 |
F-Score7
WACC7.2%
ROIC/WACC2.49
Cap/Depr(3y)72.74%
Cap/Depr(5y)66.2%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2%
Profit Quality(3y)93.16%
Profit Quality(5y)102.45%
High Growth Momentum
Growth
EPS 1Y (TTM)13.13%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%20%
EPS Next Y6%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
EPS Next 5Y8.65%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.37%
Revenue Next Year4.06%
Revenue Next 2Y4.38%
Revenue Next 3Y4.34%
Revenue Next 5Y7.2%
EBIT growth 1Y9.69%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year21.61%
EBIT Next 3Y11.58%
EBIT Next 5Y9.89%
FCF growth 1Y49.26%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y43.39%
OCF growth 3Y11.37%
OCF growth 5Y6.69%