Should Quality-Oriented Investors Explore ALLEGION PLC (NYSE:ALLE)?

In this article we will dive into ALLEGION PLC (NYSE:ALLE) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ALLEGION PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of ALLEGION PLC

• ALLEGION PLC has achieved substantial revenue growth over the past 5 years, with a 5.97% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 74.21%, ALLEGION PLC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• ALLEGION PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.79, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 104.0%, ALLEGION PLC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• ALLEGION PLC has consistently achieved strong EBIT growth over the past 5 years, with a 6.98% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• ALLEGION PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:ALLE?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to ALLE. ALLE was compared to 40 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 quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of ALLE contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.