ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - NYSE:ALLE - IE00BFRT3W74 - Common Stock
177.44 USD
-0.37 (-0.21%)
177.44 USD
0 (0%)
Overall ALLE gets a fundamental rating of 7 out of 10. We evaluated ALLE against 41 industry peers in the Building Products industry. ALLE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ALLE is valied quite expensively at the moment, while it does show a decent 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.
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's Return On Assets of 12.74% is amongst the best of the industry. ALLE outperforms 82.93% of its industry peers.
ALLE's Return On Equity of 35.05% is amongst the best of the industry. ALLE outperforms 87.80% of its industry peers.
ALLE's Return On Invested Capital of 16.86% is amongst the best of the industry. ALLE outperforms 80.49% of its industry peers.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.02%. This is significantly above the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 35.05% | ||
| ROIC | 16.86% |
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 16.15% is amongst the best of the industry. ALLE outperforms 87.80% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
ALLE has a Operating Margin of 21.04%. This is amongst the best in the industry. ALLE outperforms 90.24% of its industry peers.
ALLE's Operating Margin has been stable in the last couple of years.
ALLE's Gross Margin of 44.83% is amongst the best of the industry. ALLE outperforms 90.24% of its industry peers.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.04% | ||
| PM (TTM) | 16.15% | ||
| GM | 44.83% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALLE is creating value.
The number of shares outstanding for ALLE has been reduced compared to 1 year ago.
ALLE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.06 indicates that ALLE is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.06, ALLE is doing good in the industry, outperforming 63.41% of the companies in the same industry.
ALLE has a debt to FCF ratio of 3.03. This is a good value and a sign of high solvency as ALLE would need 3.03 years to pay back of all of its debts.
ALLE's Debt to FCF ratio of 3.03 is fine compared to the rest of the industry. ALLE outperforms 63.41% of its industry peers.
ALLE has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ALLE (1.14) is worse than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.06 |
ROIC/WACC2.34
WACC7.21%
2.3 Liquidity
ALLE has a Current Ratio of 2.30. This indicates that ALLE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALLE (2.30) is better than 63.41% of its industry peers.
A Quick Ratio of 1.64 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE has a better Quick ratio (1.64) than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
ALLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.08%, which is quite good.
The Earnings Per Share has been growing by 9.02% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.49% in the past year.
ALLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.74% yearly.
EPS 1Y (TTM)11.08%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%4.08%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.84%
3.2 Future
The Earnings Per Share is expected to grow by 9.48% on average over the next years. This is quite good.
ALLE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.
EPS Next Y9.73%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
EPS Next 5Y9.48%
Revenue Next Year7.26%
Revenue Next 2Y6.49%
Revenue Next 3Y5.85%
Revenue Next 5Y8.3%
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 22.40, which indicates a rather expensive current valuation of ALLE.
ALLE's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ALLE to the average of the S&P500 Index (27.41), we can say ALLE is valued inline with the index average.
ALLE is valuated rather expensively with a Price/Forward Earnings ratio of 19.79.
ALLE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, ALLE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALLE indicates a slightly more expensive valuation: ALLE is more expensive than 63.41% of the companies listed in the same industry.
60.98% of the companies in the same industry are more expensive than ALLE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.33 | ||
| EV/EBITDA | 17.79 |
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)2.3
PEG (5Y)2.48
EPS Next 2Y9.13%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.14%.
Compared to an average industry Dividend Yield of 1.17, ALLE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ALLE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of ALLE grows each year by 12.34%, which is quite nice.
ALLE has been paying a dividend for at least 10 years, so it has a reliable track record.
ALLE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.34%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
27.31% 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.
DP27.31%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
177.44
-0.37 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.19%
Inst Owner Change-0.84%
Ins Owners0.27%
Ins Owner Change-1.66%
Market Cap15.23B
Analysts72.63
Price Target175.47 (-1.11%)
Short Float %3.08%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP27.31%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.86%
Min EPS beat(2)0.6%
Max EPS beat(2)9.12%
EPS beat(4)4
Avg EPS beat(4)5.15%
Min EPS beat(4)0.6%
Max EPS beat(4)9.12%
EPS beat(8)8
Avg EPS beat(8)5.41%
EPS beat(12)12
Avg EPS beat(12)6.73%
EPS beat(16)16
Avg EPS beat(16)7.18%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)0%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.05%
Revenue beat(12)3
Avg Revenue beat(12)-0.25%
Revenue beat(16)5
Avg Revenue beat(16)-0.12%
PT rev (1m)1.3%
PT rev (3m)19.61%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)4.39%
EPS NY rev (1m)0%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 19.79 | ||
| P/S | 3.93 | ||
| P/FCF | 22.33 | ||
| P/OCF | 19.91 | ||
| P/B | 8.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.79 |
EPS(TTM)7.92
EY4.46%
EPS(NY)8.97
Fwd EY5.05%
FCF(TTM)7.95
FCFY4.48%
OCF(TTM)8.91
OCFY5.02%
SpS45.16
BVpS20.81
TBVpS-4.47
PEG (NY)2.3
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 35.05% | ||
| ROCE | 19.49% | ||
| ROIC | 16.86% | ||
| ROICexc | 20% | ||
| ROICexgc | 51.92% | ||
| OM | 21.04% | ||
| PM (TTM) | 16.15% | ||
| GM | 44.83% | ||
| FCFM | 17.6% |
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-Score9
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.03 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 68.2% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.65% | ||
| Profit Quality | 108.96% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 5.06 |
F-Score9
WACC7.21%
ROIC/WACC2.34
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)11.08%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%4.08%
EPS Next Y9.73%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
EPS Next 5Y9.48%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.84%
Revenue Next Year7.26%
Revenue Next 2Y6.49%
Revenue Next 3Y5.85%
Revenue Next 5Y8.3%
EBIT growth 1Y7.97%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year25.4%
EBIT Next 3Y12.33%
EBIT Next 5Y11.16%
FCF growth 1Y36.16%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y31.8%
OCF growth 3Y11.37%
OCF growth 5Y6.69%