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. While ALLE has a great profitability rating, 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
- 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.
- ALLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ALLE has a better Return On Assets (12.25%) than 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.
- The Return On Invested Capital of ALLE (16.30%) is better than 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
- 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.
- ALLE's Operating Margin of 20.98% is amongst the best of the industry. ALLE outperforms 92.86% of its industry peers.
- ALLE's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 45.12%, ALLE belongs to the best 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
- 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.
- The number of shares outstanding for ALLE has been reduced compared to 5 years ago.
- ALLE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.57 indicates that ALLE is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 4.57, ALLE perfoms like the industry average, outperforming 59.52% of the companies in the same 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 Debt to FCF ratio of 3.07. This is in the better half of the industry: ALLE outperforms 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.
- The Debt to Equity ratio of ALLE (1.06) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.57 |
ROIC/WACC2.28
WACC7.14%
2.3 Liquidity
- A Current Ratio of 1.77 indicates that ALLE should not have too much problems paying 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'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
- 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%.
- 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
- 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.
- ALLE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- The Price/Earnings ratio is 20.47, which indicates a rather expensive current valuation of ALLE.
- ALLE's Price/Earnings ratio is in line with the industry average.
- ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- 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.
- When comparing the Price/Forward Earnings ratio of ALLE to the average of the S&P500 Index (24.26), we can say ALLE is valued slightly 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.
- Based on the Price/Free Cash Flow ratio, ALLE is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.87 | ||
| EV/EBITDA | 16.45 |
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)1.89
PEG (5Y)2.27
EPS Next 2Y9.75%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
- ALLE has a Yearly Dividend Yield of 1.25%.
- Compared to an average industry Dividend Yield of 0.68, ALLE pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.87, 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 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
- ALLE pays out 26.92% of its income as dividend. This is a 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 Change0.16%
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)-0.5%
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 | 20.47 | ||
| 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 | 16.45 |
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 | 4.57 |
F-Score9
WACC7.14%
ROIC/WACC2.28
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 20.47 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.