ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock - Currency: USD
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 quite expensive at the moment. It does show a decent growth rate. With these ratings, ALLE could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ALLE was profitable.
In the past year ALLE had a positive cash flow from operations.
Each year in the past 5 years ALLE has been profitable.
In the past 5 years ALLE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.74%, ALLE belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
ALLE's Return On Equity of 35.05% is amongst the best of the industry. ALLE outperforms 87.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.86%, ALLE belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.02%. This is significantly above the industry average of 12.83%.
| 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
Looking at the Profit Margin, with a value of 16.15%, ALLE belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
In the last couple of years the Profit Margin of ALLE has grown nicely.
ALLE has a better Operating Margin (21.04%) than 90.24% of its industry peers.
ALLE's Operating Margin has been stable in the last couple of years.
ALLE has a better Gross Margin (44.83%) than 90.24% of its industry peers.
In the last couple of years the Gross Margin of ALLE has remained more or less at the same level.
| 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
ALLE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.88 indicates that ALLE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.88, ALLE is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
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 65.85% 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: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 4.88 |
ROIC/WACC2.38
WACC7.1%
2.3 Liquidity
A Current Ratio of 2.30 indicates that ALLE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.30, ALLE is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE has a Quick ratio of 1.64. This is in the better half of the industry: ALLE outperforms 73.17% of its industry peers.
| 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.
ALLE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.02% yearly.
ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.49%.
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
ALLE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.65% yearly.
Based on estimates for the next years, ALLE will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y6.29%
EPS Next 2Y7.27%
EPS Next 3Y8.07%
EPS Next 5Y8.65%
Revenue Next Year5.88%
Revenue Next 2Y5.94%
Revenue Next 3Y5.24%
Revenue Next 5Y7.2%
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 21.05, which indicates a rather expensive current valuation of ALLE.
ALLE's Price/Earnings ratio is in line with the industry average.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.24, the valuation of ALLE can be described as rather expensive.
ALLE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.42. ALLE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALLE.
ALLE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.98 | ||
| EV/EBITDA | 16.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALLE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.35
PEG (5Y)2.33
EPS Next 2Y7.27%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.15, ALLE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.23, ALLE pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 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.
ALLE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.31%
EPS Next 2Y7.27%
EPS Next 3Y8.07%
166.73
+1.6 (+0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.73%
Inst Owner Change0.65%
Ins Owners0.26%
Ins Owner Change5.36%
Market Cap14.31B
Analysts70
Price Target150.78 (-9.57%)
Short Float %4.04%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)2.78%
PT rev (3m)8.03%
EPS NQ rev (1m)3.72%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)0.27%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)3.13%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)3.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 19.24 | ||
| P/S | 3.69 | ||
| P/FCF | 20.98 | ||
| P/OCF | 18.71 | ||
| P/B | 8.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.78 |
EPS(TTM)7.92
EY4.75%
EPS(NY)8.66
Fwd EY5.2%
FCF(TTM)7.95
FCFY4.77%
OCF(TTM)8.91
OCFY5.35%
SpS45.16
BVpS20.81
TBVpS-4.47
PEG (NY)3.35
PEG (5Y)2.33
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 | 4.88 |
F-Score9
WACC7.1%
ROIC/WACC2.38
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 Y6.29%
EPS Next 2Y7.27%
EPS Next 3Y8.07%
EPS Next 5Y8.65%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.84%
Revenue Next Year5.88%
Revenue Next 2Y5.94%
Revenue Next 3Y5.24%
Revenue Next 5Y7.2%
EBIT growth 1Y7.97%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year21.61%
EBIT Next 3Y11.58%
EBIT Next 5Y9.89%
FCF growth 1Y36.16%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y31.8%
OCF growth 3Y11.37%
OCF growth 5Y6.69%