ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock - Currency: USD
Taking everything into account, ALLE scores 7 out of 10 in our fundamental rating. ALLE was compared to 42 industry peers in the Building Products industry. ALLE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALLE has a correct valuation and a medium growth rate. These ratings would make ALLE suitable 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.
ALLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALLE's Return On Assets of 13.63% is amongst the best of the industry. ALLE outperforms 80.95% of its industry peers.
ALLE's Return On Equity of 38.70% is amongst the best of the industry. ALLE outperforms 90.48% of its industry peers.
ALLE has a better Return On Invested Capital (17.90%) than 83.33% 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 12.98%.
| 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's Profit Margin of 16.28% is amongst the best of the industry. ALLE outperforms 88.10% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
ALLE has a better Operating Margin (21.07%) than 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.
With an excellent Gross Margin value of 44.49%, ALLE belongs to the best 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.
Compared to 1 year ago, ALLE has less shares outstanding
ALLE has less shares outstanding than it did 5 years ago.
ALLE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.69 indicates that ALLE is not in any danger for bankruptcy at the moment.
ALLE has a Altman-Z score of 4.69. This is in the better half of the industry: ALLE outperforms 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 61.90% of its industry peers.
ALLE has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external 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 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 4.69 |
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 54.76% of its industry peers.
A Quick Ratio of 1.51 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE has a better Quick ratio (1.51) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
ALLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.13%, which is quite good.
ALLE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.02% yearly.
Looking at the last year, ALLE shows a small growth in Revenue. The Revenue has grown by 5.48% in the last year.
Measured over the past years, ALLE shows a small growth in Revenue. The Revenue has been growing by 5.74% on average per year.
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
The Earnings Per Share is expected to grow by 8.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.95% on average over the next years.
EPS Next Y6%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
EPS Next 5Y8.48%
Revenue Next Year4.11%
Revenue Next 2Y4.38%
Revenue Next 3Y4.34%
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
ALLE is valuated rather expensively with a Price/Earnings ratio of 18.04.
Compared to the rest of the industry, the Price/Earnings ratio of ALLE is on the same level as its industry peers.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.45, which indicates a correct valuation of ALLE.
The rest of the industry has a similar Price/Forward Earnings ratio as ALLE.
When comparing the Price/Forward Earnings ratio of ALLE to the average of the S&P500 Index (21.94), we can say ALLE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
ALLE's Enterprise Value to EBITDA is on the same level as the industry average.
ALLE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)2
EPS Next 2Y6.85%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 1.16, ALLE pays a better dividend. On top of this ALLE pays more dividend than 83.33% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
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%
NYSE:ALLE (5/22/2025, 12:07:59 PM)
141.395
-0.56 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change1.77%
Ins Owners0.23%
Ins Owner Change5.55%
Market Cap12.17B
Analysts70
Price Target145.18 (2.68%)
Short Float %3.31%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)1.57%
PT rev (3m)-0.41%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-2.5%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)1.57%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.45 | ||
| P/S | 3.18 | ||
| P/FCF | 18.94 | ||
| P/OCF | 16.7 | ||
| P/B | 7.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.83 |
EPS(TTM)7.84
EY5.54%
EPS(NY)8.6
Fwd EY6.08%
FCF(TTM)7.47
FCFY5.28%
OCF(TTM)8.46
OCFY5.99%
SpS44.4
BVpS18.67
TBVpS-5.46
PEG (NY)3.01
PEG (5Y)2
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 | 4.69 |
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 Y6%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
EPS Next 5Y8.48%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.37%
Revenue Next Year4.11%
Revenue Next 2Y4.38%
Revenue Next 3Y4.34%
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%