ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLE - IE00BFRT3W74 - Common Stock
166.8 USD
-0.12 (-0.07%)
166.8 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ALLE had positive earnings in the past year.
- In the past year ALLE had a positive cash flow from operations.
- ALLE had positive earnings in each of the past 5 years.
- Each year in the past 5 years ALLE had a positive operating cash flow.
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.
- With an excellent Return On Equity value of 32.89%, ALLE belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
- 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 12.68%.
| 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 better Profit Margin (16.09%) than 88.10% of its industry peers.
- 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
- ALLE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ALLE has less shares outstanding
- ALLE has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ALLE has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.63 indicates that ALLE is not in any danger for bankruptcy at the moment.
- ALLE has a Altman-Z score of 4.63. This is comparable to the rest of the industry: ALLE outperforms 59.52% of its industry peers.
- 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.
- 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 | 4.63 |
ROIC/WACC2.25
WACC7.25%
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 in the lower half of the industry: ALLE underperforms 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 Quick ratio of 1.11. This is in the lower half of the industry: ALLE underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- ALLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.66%, which is quite good.
- Measured over the past years, ALLE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.02% on average per year.
- ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
- 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
- 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 2Y9.56%
EPS Next 3Y9.36%
EPS Next 5Y9.33%
Revenue Next Year8.07%
Revenue Next 2Y7.2%
Revenue Next 3Y6.43%
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
- ALLE is valuated rather expensively with a Price/Earnings ratio of 20.69.
- Compared to the rest of the industry, the Price/Earnings ratio of ALLE is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ALLE is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.46 indicates a rather expensive valuation of ALLE.
- Based on the Price/Forward Earnings ratio, ALLE is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ALLE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 18.46 |
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 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.1 | ||
| EV/EBITDA | 16.75 |
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)1.91
PEG (5Y)2.29
EPS Next 2Y9.56%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
- ALLE has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
- ALLE's Dividend Yield is a higher than the industry average which is at 0.66.
- Compared to the average S&P500 Dividend Yield of 1.81, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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 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
- ALLE pays out 26.92% of its income as dividend. This is a 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 2Y9.56%
EPS Next 3Y9.36%
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 20.69 and the Price/Book (PB) ratio is 7.37.
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.