ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock - Currency: USD
ALLE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 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 not valued too expensively and it also shows 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.
ALLE had positive earnings in each of the past 5 years.
Each year in the past 5 years ALLE had a positive operating cash flow.
1.2 Ratios
ALLE has a Return On Assets of 13.63%. This is in the better half of the industry: ALLE outperforms 78.05% of its industry peers.
ALLE has a Return On Equity of 38.70%. This is amongst the best in the industry. ALLE outperforms 90.24% of its industry peers.
ALLE's Return On Invested Capital of 17.90% is amongst the best of the industry. ALLE outperforms 82.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALLE is above the industry average of 13.22%.
| 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
ALLE has a Profit Margin of 16.28%. This is amongst the best in the industry. ALLE outperforms 87.80% of its industry peers.
In the last couple of years the Profit Margin of ALLE has grown nicely.
The Operating Margin of ALLE (21.07%) is better than 90.24% of its industry peers.
In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
ALLE has a Gross Margin of 44.49%. This is amongst the best in the industry. ALLE outperforms 87.80% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
ALLE has an Altman-Z score of 4.62. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
ALLE has a Altman-Z score (4.62) which is comparable to the rest of the industry.
ALLE has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as ALLE would need 3.11 years to pay back of all of its debts.
The Debt to FCF ratio of ALLE (3.11) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that ALLE has dependencies on debt financing.
ALLE's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. ALLE is outperformed by 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 4.62 |
ROIC/WACC2.48
WACC7.21%
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 of 2.17. This is comparable to the rest of the industry: ALLE outperforms 53.66% of its industry peers.
A Quick Ratio of 1.51 indicates that ALLE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, ALLE is in line with its industry, outperforming 58.54% of the companies in the same industry.
| 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 8.48% on average per year.
ALLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.95% yearly.
EPS Next Y5.13%
EPS Next 2Y6.63%
EPS Next 3Y7.7%
EPS Next 5Y8.48%
Revenue Next Year2.45%
Revenue Next 2Y3.39%
Revenue Next 3Y3.66%
Revenue Next 5Y6.95%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.76, which indicates a rather expensive current valuation of ALLE.
The rest of the industry has a similar Price/Earnings ratio as ALLE.
ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 16.26 indicates a correct valuation of ALLE.
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 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALLE is on the same level as its industry peers.
ALLE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.65 | ||
| EV/EBITDA | 14.48 |
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.
The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)3.46
PEG (5Y)1.97
EPS Next 2Y6.63%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, ALLE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.25, ALLE pays a better dividend. On top of this ALLE pays more dividend than 80.49% of the companies listed in the same industry.
ALLE's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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 its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.34%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
ALLE pays out 27.09% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALLE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y6.63%
EPS Next 3Y7.7%
139.2
+1 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change0.39%
Ins Owners0.23%
Ins Owner Change5.55%
Market Cap11.98B
Analysts70
Price Target139.57 (0.27%)
Short Float %3.62%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP27.09%
Div Incr Years9
Div Non Decr Years9
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)-2.07%
PT rev (3m)-7.34%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.26 | ||
| P/S | 3.14 | ||
| P/FCF | 18.65 | ||
| P/OCF | 16.44 | ||
| P/B | 7.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.48 |
EPS(TTM)7.84
EY5.63%
EPS(NY)8.56
Fwd EY6.15%
FCF(TTM)7.47
FCFY5.36%
OCF(TTM)8.46
OCFY6.08%
SpS44.4
BVpS18.67
TBVpS-5.46
PEG (NY)3.46
PEG (5Y)1.97
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 | 4.62 |
F-Score7
WACC7.21%
ROIC/WACC2.48
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 Y5.13%
EPS Next 2Y6.63%
EPS Next 3Y7.7%
EPS Next 5Y8.48%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.37%
Revenue Next Year2.45%
Revenue Next 2Y3.39%
Revenue Next 3Y3.66%
Revenue Next 5Y6.95%
EBIT growth 1Y9.69%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year20.65%
EBIT Next 3Y11.31%
EBIT Next 5Y9.62%
FCF growth 1Y49.26%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y43.39%
OCF growth 3Y11.37%
OCF growth 5Y6.69%