ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLE - IE00BFRT3W74 - Common Stock
161.13 USD
-0.22 (-0.14%)
161.13 USD
0 (0%)
Overall ALLE gets a fundamental rating of 6 out of 10. We evaluated ALLE against 42 industry peers in the Building Products industry. While ALLE has a great profitability rating, 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
In the past year ALLE was profitable.
ALLE had a positive operating cash flow in the past year.
In the past 5 years ALLE has always 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.
ALLE's Return On Equity of 32.89% is amongst the best of the industry. ALLE outperforms 88.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.30%, ALLE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 12.61%.
| 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
ALLE's Profit Margin of 16.09% is amongst the best of the industry. ALLE outperforms 88.10% of its industry peers.
In the last couple of years the Profit Margin of ALLE has grown nicely.
The Operating Margin of ALLE (20.98%) is better than 92.86% of its industry peers.
In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
The Gross Margin of ALLE (45.12%) is better than 92.86% 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 | 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.
ALLE has less shares outstanding than it did 1 year ago.
ALLE has less shares outstanding than it did 5 years ago.
ALLE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.54 indicates that ALLE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALLE (4.54) 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.
ALLE has a better Debt to FCF ratio (3.07) than 61.90% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that ALLE has dependencies on debt financing.
ALLE has a worse Debt to Equity ratio (1.06) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.54 |
ROIC/WACC2.29
WACC7.13%
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 Current ratio of 1.77. This is comparable to the rest of the industry: ALLE outperforms 40.48% 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 61.90% 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.
The Earnings Per Share has been growing by 9.02% on average over the past years. This is quite good.
Looking at the last year, ALLE shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
ALLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.74% yearly.
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
Based on estimates for the next years, ALLE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.33% on average per year.
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 3Y6.48%
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 19.99, ALLE is valued on the expensive side.
ALLE's Price/Earnings ratio is in line with the industry average.
ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
A Price/Forward Earnings ratio of 17.76 indicates a rather expensive valuation of ALLE.
ALLE's Price/Forward Earnings ratio is in line with the industry average.
ALLE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALLE indicates a slightly more expensive valuation: ALLE is more expensive than 61.90% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALLE is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.38 | ||
| EV/EBITDA | 16.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)2.22
EPS Next 2Y9.75%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, ALLE has a reasonable but not impressive dividend return.
ALLE's Dividend Yield is a higher than the industry average which is at 0.72.
Compared to the average S&P500 Dividend Yield of 2.00, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of ALLE is nicely growing with an annual growth rate of 12.34%!
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
26.92% of the earnings are spent on dividend by ALLE. This is a low number and sustainable payout ratio.
The dividend of ALLE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.92%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
161.13
-0.22 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.87%
Inst Owner Change1.08%
Ins Owners0.25%
Ins Owner Change-2.29%
Market Cap13.86B
Revenue(TTM)3.98B
Net Income(TTM)640.30M
Analysts73.68
Price Target185.93 (15.39%)
Short Float %3.65%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP26.92%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)-0.5%
PT rev (3m)5.96%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.76 | ||
| P/S | 3.48 | ||
| P/FCF | 20.38 | ||
| P/OCF | 18.17 | ||
| P/B | 7.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.24 |
EPS(TTM)8.06
EY5%
EPS(NY)9.07
Fwd EY5.63%
FCF(TTM)7.91
FCFY4.91%
OCF(TTM)8.87
OCFY5.5%
SpS46.26
BVpS22.63
TBVpS-9.19
PEG (NY)1.84
PEG (5Y)2.22
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 | 4.54 |
F-Score9
WACC7.13%
ROIC/WACC2.29
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 3Y6.48%
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 for 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 19.99 and the Price/Book (PB) ratio is 7.12.
What is the financial health of ALLEGION PLC (ALLE) stock?
The financial health rating of ALLEGION PLC (ALLE) is 5 / 10.