ALLEGION PLC (ALLE)
IE00BFRT3W74 - Common Stock
Overall ALLE gets a fundamental rating of 5 out of 10. We evaluated ALLE against 43 industry peers in the Building Products industry. While ALLE has a great profitability rating, there are some minor concerns on its financial health. ALLE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALLE had positive earnings in the past year.
In the past year ALLE had a positive cash flow from operations.
In the past 5 years ALLE has always been profitable.
Each year in the past 5 years ALLE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.53%, ALLE is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
ALLE's Return On Equity of 40.99% is amongst the best of the industry. ALLE outperforms 95.35% of its industry peers.
ALLE has a Return On Invested Capital of 20.14%. This is amongst the best in the industry. ALLE outperforms 86.05% of its industry peers.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.66%. This is above the industry average of 13.75%.
The 3 year average ROIC (18.66%) for ALLE is below the current ROIC(20.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | 40.99% | ||
| ROIC | 20.14% |
ROA(3y)13.28%
ROA(5y)12.72%
ROE(3y)51.08%
ROE(5y)48.84%
ROIC(3y)18.66%
ROIC(5y)19.27%
1.3 Margins
ALLE has a Profit Margin of 14.80%. This is amongst the best in the industry. ALLE outperforms 83.72% of its industry peers.
In the last couple of years the Profit Margin of ALLE has remained more or less at the same level.
With an excellent Operating Margin value of 20.18%, ALLE belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
ALLE's Operating Margin has been stable in the last couple of years.
The Gross Margin of ALLE (43.32%) is better than 90.70% of its industry peers.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.18% | ||
| PM (TTM) | 14.8% | ||
| GM | 43.32% |
OM growth 3Y-1.3%
OM growth 5Y0.95%
PM growth 3Y8.6%
PM growth 5Y-1.45%
GM growth 3Y-0.16%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALLE is creating value.
The number of shares outstanding for ALLE has been reduced compared to 1 year ago.
Compared to 5 years ago, ALLE has less shares outstanding
Compared to 1 year ago, ALLE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.19 indicates that ALLE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALLE (4.19) is comparable to the rest of the industry.
ALLE has a debt to FCF ratio of 3.90. This is a good value and a sign of high solvency as ALLE would need 3.90 years to pay back of all of its debts.
ALLE's Debt to FCF ratio of 3.90 is on the low side compared to the rest of the industry. ALLE is outperformed by 67.44% of its industry peers.
ALLE has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.22, ALLE is doing worse than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 4.19 |
ROIC/WACC2.93
WACC6.87%
2.3 Liquidity
ALLE has a Current Ratio of 1.26. This is a normal value and indicates that ALLE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.26, ALLE is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
ALLE has a Quick Ratio of 1.26. This is a bad value and indicates that ALLE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ALLE (0.85) is worse than 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.54% over the past year.
Measured over the past years, ALLE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.11% on average per year.
The Revenue has grown by 11.58% in the past year. This is quite good.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)22.54%
EPS 3Y10.78%
EPS 5Y9.11%
EPS growth Q2Q5%
Revenue 1Y (TTM)11.58%
Revenue growth 3Y10.31%
Revenue growth 5Y5.97%
Revenue growth Q2Q4.17%
3.2 Future
The Earnings Per Share is expected to grow by 8.80% on average over the next years. This is quite good.
Based on estimates for the next years, ALLE will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y3.53%
EPS Next 2Y5%
EPS Next 3Y7.95%
EPS Next 5Y8.8%
Revenue Next Year2.23%
Revenue Next 2Y2.95%
Revenue Next 3Y3.57%
Revenue Next 5Y6.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.79, ALLE is valued on the expensive side.
62.79% of the companies in the same industry are more expensive than ALLE, based on the Price/Earnings ratio.
ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.84.
ALLE is valuated rather expensively with a Price/Forward Earnings ratio of 17.19.
ALLE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, ALLE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 17.19 |
4.2 Price Multiples
ALLE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 14.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALLE does not grow enough to justify the current Price/Earnings ratio.
ALLE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.04
PEG (5Y)1.95
EPS Next 2Y5%
EPS Next 3Y7.95%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.54%.
ALLE's Dividend Yield is rather good when compared to the industry average which is at 1.31. ALLE pays more dividend than 90.70% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of ALLE grows each year by 16.67%, which is quite nice.
ALLE has paid a dividend for at least 10 years, which is a reliable track record.
ALLE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.67%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
29.37% of the earnings are spent on dividend by ALLE. This is a low number and sustainable payout ratio.
The dividend of ALLE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.37%
EPS Next 2Y5%
EPS Next 3Y7.95%
ALLEGION PLC
NYSE:ALLE (4/26/2024, 7:04:00 PM)
After market: 123.85 0 (0%)123.85
-1.02 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 17.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.04
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | 40.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.18% | ||
| PM (TTM) | 14.8% | ||
| GM | 43.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.54%
EPS 3Y10.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.58%
Revenue growth 3Y10.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y