Why ALLEGION PLC (NYSE:ALLE) should be investigated by quality investors.

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.

Some of the quality metrics of ALLE highlighted

• Over the past 5 years, ALLE has experienced impressive revenue growth, with 5.74% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of ALLE stands at 54.99%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• ALLE demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.43, 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 102.0%, ALLE 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.
• ALLE has experienced impressive EBIT growth over the past 5 years, with 6.69% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• ALLE has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of ALLE telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ALLE. ALLE was compared to 40 industry peers in the Building Products industry. ALLE has an excellent profitability rating, but there are some minor concerns on its financial health. ALLE has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of ALLE for a complete fundamental analysis.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.