ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLE - IE00BFRT3W74 - Common Stock
162.69 USD
-1.58 (-0.96%)
162.69 USD
0 (0%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. ALLE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALLE was profitable.
ALLE had a positive operating cash flow in the past year.
Each year in the past 5 years ALLE has been profitable.
In the past 5 years ALLE always reported a positive cash flow from operatings.
1.2 Ratios
ALLE has a Return On Assets of 12.25%. This is amongst the best in 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.
The Return On Invested Capital of ALLE (16.30%) is better than 83.33% of its industry peers.
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 has a Profit Margin of 16.09%. This is amongst the best in the industry. ALLE outperforms 88.10% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
The Operating Margin of ALLE (20.98%) is better than 92.86% of its industry peers.
ALLE's Operating Margin has been stable in the last couple of years.
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.
ALLE's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALLE is creating value.
ALLE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALLE has less shares outstanding
The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
ALLE has an Altman-Z score of 4.59. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
ALLE has a Altman-Z score of 4.59. This is comparable to the rest of the industry: ALLE outperforms 59.52% of its industry peers.
The Debt to FCF ratio of ALLE is 3.07, which is a good value as it means it would take ALLE, 3.07 years of fcf income to pay off all of its debts.
ALLE has a better Debt to FCF ratio (3.07) than 61.90% of its industry peers.
ALLE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external 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 | 4.59 |
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 worse Current ratio (1.77) than 61.90% 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's Quick ratio of 1.11 is on the low side compared to the rest of the industry. ALLE is outperformed by 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.
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.
Measured over the past years, ALLE shows a small growth in Revenue. The Revenue has been growing by 5.74% on average per year.
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
ALLE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.33% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.18, the valuation of ALLE can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as ALLE.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.94 indicates a rather expensive valuation of ALLE.
The rest of the industry has a similar Price/Forward Earnings ratio as ALLE.
ALLE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALLE is valued a bit more expensive than 61.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLE indicates a somewhat cheap valuation: ALLE is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.58 | ||
| EV/EBITDA | 16.52 |
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.
ALLE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)2.24
EPS Next 2Y9.75%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, ALLE has a reasonable but not impressive dividend return.
ALLE's Dividend Yield is a higher than the industry average which is at 0.74.
ALLE's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 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%
162.69
-1.58 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change-2.52%
Market Cap14.00B
Revenue(TTM)3.98B
Net Income(TTM)640.30M
Analysts73.68
Price Target185.93 (14.28%)
Short Float %3.65%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)-0.5%
PT rev (3m)4.62%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.57%
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)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 17.94 | ||
| P/S | 3.52 | ||
| P/FCF | 20.58 | ||
| P/OCF | 18.35 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.52 |
EPS(TTM)8.06
EY4.95%
EPS(NY)9.07
Fwd EY5.58%
FCF(TTM)7.91
FCFY4.86%
OCF(TTM)8.87
OCFY5.45%
SpS46.26
BVpS22.63
TBVpS-9.19
PEG (NY)1.86
PEG (5Y)2.24
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 | 4.59 |
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 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 20.18 and the Price/Book (PB) ratio is 7.19.
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.