Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ALLEGION PLC (NYSE:ALLE) is suited for quality investing. Investors should of course do their own research, but we spotted ALLEGION PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Highlighting Notable Quality Metrics of NYSE:ALLE.
Over the past 5 years, ALLEGION PLC has experienced impressive revenue growth, with 5.97% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
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 favorable Profit Quality (5-year) ratio of 104.0%, ALLEGION PLC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
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 has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
How does the complete fundamental picture look for NYSE:ALLE?
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
Taking everything into account, ALLE scores 5 out of 10 in our fundamental rating. ALLE was compared to 39 industry peers in the Building Products industry. ALLE has an excellent profitability rating, but there are some minor concerns on its financial health. ALLE is valied quite expensively at the moment, while it does show a decent growth rate.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.