ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLE - IE00BFRT3W74 - Common Stock
164.99 USD
+1.5 (+0.92%)
164.523 USD
-0.47 (-0.28%)
We assign a fundamental rating of 6 out of 10 to ALLE. ALLE was compared to 42 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.
1. Profitability
1.1 Basic Checks
- ALLE had positive earnings in the past year.
- ALLE had a positive operating cash flow in the past year.
- Each year in the past 5 years ALLE has been profitable.
- Each year in the past 5 years ALLE had a positive operating cash flow.
1.2 Ratios
- ALLE's Return On Assets of 12.25% is amongst the best of the industry. ALLE outperforms 80.95% of its industry peers.
- Looking at the Return On Equity, with a value of 32.89%, ALLE belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- ALLE's Return On Invested Capital of 16.30% is amongst the best of the industry. ALLE outperforms 83.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ALLE is significantly above the industry average of 12.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 32.89% | ||
| ROIC | 16.3% |
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
- With an excellent Profit Margin value of 16.09%, ALLE belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
- In the last couple of years the Profit Margin of ALLE has grown nicely.
- Looking at the Operating Margin, with a value of 20.98%, ALLE belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 45.12%, ALLE belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- 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 | 20.98% | ||
| PM (TTM) | 16.09% | ||
| GM | 45.12% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALLE is creating value.
- The number of shares outstanding for ALLE has been reduced compared to 1 year ago.
- The number of shares outstanding for ALLE has been reduced compared to 5 years ago.
- The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
- ALLE has an Altman-Z score of 4.60. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ALLE (4.60) is comparable to the rest of the industry.
- ALLE has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as ALLE would need 3.07 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.07, ALLE is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
- ALLE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- ALLE has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: ALLE underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.6 |
ROIC/WACC2.25
WACC7.24%
2.3 Liquidity
- ALLE has a Current Ratio of 1.77. This is a normal value and indicates that ALLE is financially healthy and should not expect problems in meeting its short term obligations.
- ALLE has a worse Current ratio (1.77) than 64.29% of its industry peers.
- A Quick Ratio of 1.11 indicates that ALLE should not have too much problems paying its short term obligations.
- ALLE has a worse Quick ratio (1.11) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.66% 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 6.87%.
- The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)9.66%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%6.48%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%10.66%
3.2 Future
- The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y10.85%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
EPS Next 5Y9.33%
Revenue Next Year8.07%
Revenue Next 2Y7.31%
Revenue Next 3Y6.52%
Revenue Next 5Y8.39%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 20.47, ALLE is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as ALLE.
- ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 18.19, the valuation of ALLE can be described as rather expensive.
- 66.67% of the companies in the same industry are more expensive than ALLE, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, ALLE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
- ALLE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALLE is more expensive than 61.90% of the companies in the same industry.
- 64.29% of the companies in the same industry are more expensive than ALLE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.87 | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALLE does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)2.27
EPS Next 2Y9.75%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.25%, ALLE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.67, ALLE pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.85, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
- On average, the dividend of ALLE grows each year by 12.34%, which is quite nice.
- ALLE has been paying a dividend for at least 10 years, so it has 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
- 26.92% 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.
DP26.92%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
164.99
+1.5 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)02-16 2026-02-16/amc
Inst Owners98.16%
Inst Owner Change0.17%
Ins Owners0.25%
Ins Owner Change-2.56%
Market Cap14.19B
Revenue(TTM)3.98B
Net Income(TTM)640.30M
Analysts73.68
Price Target185.28 (12.3%)
Short Float %3.65%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP26.92%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.29%
Min EPS beat(2)0.6%
Max EPS beat(2)1.99%
EPS beat(4)4
Avg EPS beat(4)3.96%
Min EPS beat(4)0.6%
Max EPS beat(4)9.12%
EPS beat(8)8
Avg EPS beat(8)4.44%
EPS beat(12)12
Avg EPS beat(12)6.14%
EPS beat(16)16
Avg EPS beat(16)6.13%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)0%
Max Revenue beat(2)0.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)3
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)-0.02%
PT rev (1m)-0.84%
PT rev (3m)4.26%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.19 | ||
| P/S | 3.57 | ||
| P/FCF | 20.87 | ||
| P/OCF | 18.61 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.58 |
EPS(TTM)8.06
EY4.89%
EPS(NY)9.07
Fwd EY5.5%
FCF(TTM)7.91
FCFY4.79%
OCF(TTM)8.87
OCFY5.37%
SpS46.26
BVpS22.63
TBVpS-9.19
PEG (NY)1.89
PEG (5Y)2.27
Graham Number64.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 32.89% | ||
| ROCE | 18.84% | ||
| ROIC | 16.3% | ||
| ROICexc | 17.5% | ||
| ROICexgc | 51.89% | ||
| OM | 20.98% | ||
| PM (TTM) | 16.09% | ||
| GM | 45.12% | ||
| FCFM | 17.09% |
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%
ROICexgc growth 3Y-1.17%
ROICexgc 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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 64.15% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.16% | ||
| Profit Quality | 106.23% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.6 |
F-Score9
WACC7.24%
ROIC/WACC2.25
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)9.66%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%6.48%
EPS Next Y10.85%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
EPS Next 5Y9.33%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%10.66%
Revenue Next Year8.07%
Revenue Next 2Y7.31%
Revenue Next 3Y6.52%
Revenue Next 5Y8.39%
EBIT growth 1Y7.81%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year27.49%
EBIT Next 3Y13.77%
EBIT Next 5Y11.21%
FCF growth 1Y38.73%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y32.99%
OCF growth 3Y11.37%
OCF growth 5Y6.69%
ALLEGION PLC / ALLE FAQ
Can you provide the ChartMill fundamental rating for ALLEGION PLC?
ChartMill assigns a fundamental rating of 6 / 10 to ALLE.
What is the valuation status of ALLEGION PLC (ALLE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ALLEGION PLC (ALLE). This can be considered as Fairly Valued.
What is the profitability of ALLE stock?
ALLEGION PLC (ALLE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ALLE stock?
The Price/Earnings (PE) ratio for ALLEGION PLC (ALLE) is 20.47 and the Price/Book (PB) ratio is 7.29.
What is the expected EPS growth for ALLEGION PLC (ALLE) stock?
The Earnings per Share (EPS) of ALLEGION PLC (ALLE) is expected to grow by 10.85% in the next year.