ALLEGION PLC (ALLE) Fundamental Analysis & Valuation
NYSE:ALLE • IE00BFRT3W74
149.09 USD
-1.28 (-0.85%)
Last: Mar 9, 2026, 12:51 PM
This ALLE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, ALLE scores 6 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. ALLE Profitability Analysis
1.1 Basic Checks
- In the past year ALLE was profitable.
- In the past year ALLE had a positive cash flow from operations.
- ALLE had positive earnings in each of the past 5 years.
- In the past 5 years ALLE always reported a positive cash flow from operatings.
1.2 Ratios
- ALLE has a Return On Assets of 12.32%. This is amongst the best in the industry. ALLE outperforms 80.95% of its industry peers.
- The Return On Equity of ALLE (31.14%) is better than 88.10% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.28%, ALLE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALLE is significantly above the industry average of 11.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 31.14% | ||
| ROIC | 16.28% |
ROA(3y)12.72%
ROA(5y)13.1%
ROE(3y)37.31%
ROE(5y)44.84%
ROIC(3y)17.85%
ROIC(5y)17.58%
1.3 Margins
- The Profit Margin of ALLE (15.83%) is better than 90.48% 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 21.13%, ALLE belongs to the top of the industry, outperforming 90.48% 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.
- ALLE has a better Gross Margin (45.20%) than 95.24% 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 | 21.13% | ||
| PM (TTM) | 15.83% | ||
| GM | 45.2% |
OM growth 3Y4.46%
OM growth 5Y0.47%
PM growth 3Y4.18%
PM growth 5Y6.5%
GM growth 3Y3.8%
GM growth 5Y0.75%
2. ALLE Health Analysis
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 4.53. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ALLE (4.53) is better than 66.67% of its industry peers.
- ALLE has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as ALLE would need 2.89 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.89, ALLE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- ALLE has a Debt/Equity ratio of 0.96. This is a neutral value indicating ALLE is somewhat dependend on debt financing.
- The Debt to Equity ratio of ALLE (0.96) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.53 |
ROIC/WACC2.25
WACC7.23%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that ALLE should not have too much problems paying its short term obligations.
- ALLE has a Current ratio of 1.84. This is comparable to the rest of the industry: ALLE outperforms 47.62% of its industry peers.
- A Quick Ratio of 1.16 indicates that ALLE should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.16, ALLE is in line with its industry, outperforming 54.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.16 |
3. ALLE Growth Analysis
3.1 Past
- ALLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.10%, which is quite good.
- ALLE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.72% yearly.
- The Revenue has been growing slightly by 7.82% in the past year.
- ALLE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)8.1%
EPS 3Y12.74%
EPS 5Y9.72%
EPS Q2Q%4.3%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y7.52%
Revenue growth 5Y8.38%
Sales Q2Q%9.26%
3.2 Future
- ALLE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
- Based on estimates for the next years, ALLE will show a small growth in Revenue. The Revenue will grow by 6.42% on average per year.
EPS Next Y10.29%
EPS Next 2Y9%
EPS Next 3Y8.93%
EPS Next 5Y7.07%
Revenue Next Year6.36%
Revenue Next 2Y5.43%
Revenue Next 3Y5.07%
Revenue Next 5Y6.42%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. ALLE Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.32, ALLE is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of ALLE is on the same level as its industry peers.
- ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
- A Price/Forward Earnings ratio of 16.61 indicates a correct valuation of ALLE.
- ALLE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ALLE to the average of the S&P500 Index (24.60), we can say ALLE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
- ALLE's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 | 18.73 | ||
| EV/EBITDA | 14.69 |
4.3 Compensation for Growth
- ALLE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)1.89
EPS Next 2Y9%
EPS Next 3Y8.93%
5. ALLE Dividend Analysis
5.1 Amount
- ALLE has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.70, ALLE pays a better dividend. On top of this ALLE pays more dividend than 80.95% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- On average, the dividend of ALLE grows each year by 9.79%, 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)9.79%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- ALLE pays out 27.23% 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.
DP27.23%
EPS Next 2Y9%
EPS Next 3Y8.93%
ALLE Fundamentals: All Metrics, Ratios and Statistics
NYSE:ALLE (3/9/2026, 12:51:08 PM)
149.09
-1.28 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners97.1%
Inst Owner Change-1.67%
Ins Owners0.31%
Ins Owner Change7.7%
Market Cap12.84B
Revenue(TTM)4.07B
Net Income(TTM)643.80M
Analysts73.68
Price Target183.25 (22.91%)
Short Float %2.96%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend2.03
Dividend Growth(5Y)9.79%
DP27.23%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-13 2026-03-13 (0.55)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.11%
Min EPS beat(2)-4.21%
Max EPS beat(2)1.99%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-4.21%
Max EPS beat(4)9.12%
EPS beat(8)7
Avg EPS beat(8)3.43%
EPS beat(12)11
Avg EPS beat(12)4.68%
EPS beat(16)15
Avg EPS beat(16)5.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)0.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)3
Avg Revenue beat(12)-0.62%
Revenue beat(16)5
Avg Revenue beat(16)-0.29%
PT rev (1m)-0.95%
PT rev (3m)-1.93%
EPS NQ rev (1m)-4.71%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.61 | ||
| P/S | 3.16 | ||
| P/FCF | 18.73 | ||
| P/OCF | 16.39 | ||
| P/B | 6.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.69 |
EPS(TTM)8.14
EY5.46%
EPS(NY)8.98
Fwd EY6.02%
FCF(TTM)7.96
FCFY5.34%
OCF(TTM)9.1
OCFY6.1%
SpS47.21
BVpS24
TBVpS-7.79
PEG (NY)1.78
PEG (5Y)1.89
Graham Number66.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 31.14% | ||
| ROCE | 19.24% | ||
| ROIC | 16.28% | ||
| ROICexc | 17.69% | ||
| ROICexgc | 52.96% | ||
| OM | 21.13% | ||
| PM (TTM) | 15.83% | ||
| GM | 45.2% | ||
| FCFM | 16.86% |
ROA(3y)12.72%
ROA(5y)13.1%
ROE(3y)37.31%
ROE(5y)44.84%
ROIC(3y)17.85%
ROIC(5y)17.58%
ROICexc(3y)20.32%
ROICexc(5y)20.08%
ROICexgc(3y)63.95%
ROICexgc(5y)60.35%
ROCE(3y)21.09%
ROCE(5y)20.77%
ROICexgc growth 3Y0.28%
ROICexgc growth 5Y-3.23%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-5.1%
OM growth 3Y4.46%
OM growth 5Y0.47%
PM growth 3Y4.18%
PM growth 5Y6.5%
GM growth 3Y3.8%
GM growth 5Y0.75%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 73.65% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 8.76 | ||
| Cash Conversion | 78.96% | ||
| Profit Quality | 106.51% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.53 |
F-Score6
WACC7.23%
ROIC/WACC2.25
Cap/Depr(3y)75.5%
Cap/Depr(5y)69.3%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.14%
Profit Quality(3y)99.87%
Profit Quality(5y)95.55%
High Growth Momentum
Growth
EPS 1Y (TTM)8.1%
EPS 3Y12.74%
EPS 5Y9.72%
EPS Q2Q%4.3%
EPS Next Y10.29%
EPS Next 2Y9%
EPS Next 3Y8.93%
EPS Next 5Y7.07%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y7.52%
Revenue growth 5Y8.38%
Sales Q2Q%9.26%
Revenue Next Year6.36%
Revenue Next 2Y5.43%
Revenue Next 3Y5.07%
Revenue Next 5Y6.42%
EBIT growth 1Y10.04%
EBIT growth 3Y12.32%
EBIT growth 5Y8.89%
EBIT Next Year17.8%
EBIT Next 3Y10.21%
EBIT Next 5Y7.68%
FCF growth 1Y17.64%
FCF growth 3Y20.13%
FCF growth 5Y9.12%
OCF growth 1Y16.12%
OCF growth 3Y19.48%
OCF growth 5Y9.84%
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 5 / 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 18.32 and the Price/Book (PB) ratio is 6.21.
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 10.29% in the next year.