ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - NYSE:ALLE - IE00BFRT3W74 - Common Stock
161.25 USD
-3.27 (-1.99%)
161.25 USD
0 (0%)
Taking everything into account, ALLE scores 7 out of 10 in our fundamental rating. ALLE was compared to 41 industry peers in the Building Products industry. While ALLE belongs to the best of the industry regarding profitability, 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.
In the past year ALLE had a positive cash flow from operations.
In the past 5 years ALLE has always been profitable.
In the past 5 years ALLE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.26%, ALLE belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
ALLE has a better Return On Equity (32.90%) than 87.80% of its industry peers.
With an excellent Return On Invested Capital value of 16.29%, ALLE belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.02%. This is significantly above the industry average of 12.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.26% | ||
| ROE | 32.9% | ||
| ROIC | 16.29% |
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 87.80% 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 20.97%, ALLE belongs to the top of the industry, outperforming 92.68% 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 Gross Margin of 45.12%. This is amongst the best in the industry. ALLE outperforms 92.68% of its industry peers.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.97% | ||
| 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.
ALLE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.59 indicates that ALLE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.59, ALLE is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
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 Debt to FCF ratio of 3.07. This is in the better half of the industry: ALLE outperforms 60.98% 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 Debt to Equity ratio of 1.06. This is in the lower half of the industry: ALLE underperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.59 |
ROIC/WACC2.27
WACC7.17%
2.3 Liquidity
A Current Ratio of 1.77 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE's Current ratio of 1.77 is in line compared to the rest of the industry. ALLE outperforms 41.46% of its industry peers.
ALLE has a Quick Ratio of 1.11. This is a normal value and indicates that ALLE is financially healthy and should not expect problems in meeting its short term obligations.
ALLE's Quick ratio of 1.11 is in line compared to the rest of the industry. ALLE outperforms 41.46% 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.
ALLE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.02% yearly.
The Revenue has been growing slightly by 6.87% in the past 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
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.
Based on estimates for the next years, ALLE will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
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
The Price/Earnings ratio is 20.01, which indicates a rather expensive current valuation of ALLE.
ALLE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ALLE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.78, ALLE is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE is on the same level as its industry peers.
ALLE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 17.78 |
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 63.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALLE is valued a bit cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.35 | ||
| 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.
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
ALLE has a Yearly Dividend Yield of 1.24%.
ALLE's Dividend Yield is a higher than the industry average which is at 1.34.
Compared to an average S&P500 Dividend Yield of 2.42, ALLE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
On average, the dividend of ALLE grows each year by 12.31%, which is quite nice.
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)12.31%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
ALLE pays out 26.98% 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.
DP26.98%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
161.25
-3.27 (-1.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change-0.58%
Ins Owners0.25%
Ins Owner Change-1.66%
Market Cap13.84B
Revenue(TTM)3.98B
Net Income(TTM)640.40M
Analysts73.68
Price Target186.69 (15.78%)
Short Float %3.08%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.92
Dividend Growth(5Y)12.31%
DP26.98%
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)5.05%
PT rev (3m)7.78%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0.52%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 17.78 | ||
| P/S | 3.48 | ||
| P/FCF | 20.35 | ||
| P/OCF | 18.15 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.52 |
EPS(TTM)8.06
EY5%
EPS(NY)9.07
Fwd EY5.63%
FCF(TTM)7.92
FCFY4.91%
OCF(TTM)8.88
OCFY5.51%
SpS46.36
BVpS22.67
TBVpS-9.21
PEG (NY)1.84
PEG (5Y)2.22
Graham Number64.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.26% | ||
| ROE | 32.9% | ||
| ROCE | 18.83% | ||
| ROIC | 16.29% | ||
| ROICexc | 17.49% | ||
| ROICexgc | 51.87% | ||
| OM | 20.97% | ||
| 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 | 64.38% | ||
| Cap/Sales | 2.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.22% | ||
| Profit Quality | 106.2% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.59 |
F-Score9
WACC7.17%
ROIC/WACC2.27
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 1Y7.76%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year26.63%
EBIT Next 3Y13.04%
EBIT Next 5Y11.21%
FCF growth 1Y38.71%
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 7 / 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 20.01 and the Price/Book (PB) ratio is 7.11.
What is the financial health of ALLEGION PLC (ALLE) stock?
The financial health rating of ALLEGION PLC (ALLE) is 6 / 10.