ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - IE00BFRT3W74 - Common Stock
170.79 USD
-1.21 (-0.7%)
Overall ALLE gets a fundamental rating of 7 out of 10. We evaluated ALLE against 41 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. This makes ALLE very considerable for quality investing!
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.
Each year in the past 5 years ALLE has been profitable.
ALLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALLE has a better Return On Assets (12.74%) than 82.93% of its industry peers.
With an excellent Return On Equity value of 35.05%, ALLE belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
ALLE's Return On Invested Capital of 16.86% is amongst the best of the industry. ALLE outperforms 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 12.73%.
| 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
The Profit Margin of ALLE (16.15%) is better than 87.80% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
ALLE has a better Operating Margin (21.04%) 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 44.83%. This is amongst the best in 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.
Compared to 5 years ago, ALLE has less shares outstanding
The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.97 indicates that ALLE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALLE (4.97) is better than 60.98% of its industry peers.
The Debt to FCF ratio of ALLE is 3.03, which is a good value as it means it would take ALLE, 3.03 years of fcf income to pay off all of its debts.
ALLE has a better Debt to FCF ratio (3.03) than 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.
With a Debt to Equity ratio value of 1.14, ALLE is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 4.97 |
ROIC/WACC2.37
WACC7.11%
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.
ALLE has a better Current ratio (2.30) than 60.98% of its industry peers.
A Quick Ratio of 1.64 indicates that ALLE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.64, ALLE is doing good in the industry, outperforming 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.08% 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 9.02% on average per year.
ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.49%.
The Revenue has been growing slightly by 5.74% on average over the past years.
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
Based on estimates for the next years, ALLE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
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 2Y6.25%
Revenue Next 3Y5.43%
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.
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
The Price/Earnings ratio is 21.56, which indicates a rather expensive current valuation of ALLE.
Compared to the rest of the industry, the Price/Earnings ratio of ALLE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.14. ALLE is valued slightly cheaper when compared to this.
ALLE is valuated rather expensively with a Price/Forward Earnings ratio of 19.04.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, ALLE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 19.04 |
4.2 Price Multiples
ALLE's Enterprise Value to EBITDA ratio is in line with the industry average.
ALLE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 17.26 |
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)2.22
PEG (5Y)2.39
EPS Next 2Y9.13%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.22%.
ALLE's Dividend Yield is a higher than the industry average which is at 1.14.
Compared to an average S&P500 Dividend Yield of 2.34, ALLE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of ALLE grows each year by 12.34%, which is quite nice.
ALLE has paid a dividend for at least 10 years, which is 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
ALLE pays out 27.31% 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.
DP27.31%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
NYSE:ALLE (8/28/2025, 11:06:46 AM)
170.79
-1.21 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.19%
Inst Owner Change-0.83%
Ins Owners0.27%
Ins Owner Change-2.04%
Market Cap14.66B
Analysts71.58
Price Target173.93 (1.84%)
Short Float %3.23%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)-0.47%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.37%
Revenue beat(16)5
Avg Revenue beat(16)-0.21%
PT rev (1m)15.36%
PT rev (3m)19.8%
EPS NQ rev (1m)3.55%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)3.25%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)3.1%
Revenue NQ rev (3m)5.76%
Revenue NY rev (1m)2.64%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 19.04 | ||
| P/S | 3.78 | ||
| P/FCF | 21.49 | ||
| P/OCF | 19.16 | ||
| P/B | 8.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.26 |
EPS(TTM)7.92
EY4.64%
EPS(NY)8.97
Fwd EY5.25%
FCF(TTM)7.95
FCFY4.65%
OCF(TTM)8.91
OCFY5.22%
SpS45.16
BVpS20.81
TBVpS-4.47
PEG (NY)2.22
PEG (5Y)2.39
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 | 4.97 |
F-Score9
WACC7.11%
ROIC/WACC2.37
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 2Y6.25%
Revenue Next 3Y5.43%
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%