ALLEGION PLC (ALLE) Fundamental Analysis & Valuation
NYSE:ALLE • IE00BFRT3W74
149.59 USD
-0.63 (-0.42%)
Last: Mar 10, 2026, 11:26 AM
This ALLE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ALLE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
1. ALLE Profitability Analysis
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.
- 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.
- Looking at the Return On Equity, with a value of 31.14%, ALLE belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 11.91%.
| 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
- ALLE has a better Profit Margin (15.83%) 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
- 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 4.53 indicates that ALLE is not in any danger for bankruptcy at the moment.
- ALLE has a better Altman-Z score (4.53) than 66.67% of its industry peers.
- The Debt to FCF ratio of ALLE is 2.89, which is a good value as it means it would take ALLE, 2.89 years of fcf income to pay off all of its debts.
- ALLE has a better Debt to FCF ratio (2.89) than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.96 indicates that ALLE is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.96, ALLE is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.53 |
ROIC/WACC2.25
WACC7.23%
2.3 Liquidity
- ALLE has a Current Ratio of 1.84. This is a normal value and indicates that ALLE is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of ALLE (1.84) is comparable to the rest of the industry.
- ALLE has a Quick Ratio of 1.16. 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 Quick ratio (1.16) which is in line with its industry peers.
| 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.
- Measured over the past years, ALLE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.72% on average per year.
- 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
- The Earnings Per Share is expected to grow by 7.07% on average over the next years.
- ALLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ALLE Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.38 indicates a rather expensive valuation of ALLE.
- The rest of the industry has a similar Price/Earnings ratio as ALLE.
- When comparing the Price/Earnings ratio of ALLE to the average of the S&P500 Index (26.45), we can say ALLE is valued slightly cheaper.
- ALLE is valuated correctly with a Price/Forward Earnings ratio of 16.66.
- Based on the Price/Forward Earnings ratio, ALLE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- ALLE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.66 |
4.2 Price Multiples
- ALLE's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 18.79 | ||
| EV/EBITDA | 14.67 |
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)1.79
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.
- ALLE's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- The dividend of ALLE is nicely growing with an annual growth rate of 9.79%!
- 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.
- The dividend of ALLE is growing, but the earnings are growing slower. 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 (3/10/2026, 11:26:29 AM)
149.59
-0.63 (-0.42%)
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 Cap12.89B
Revenue(TTM)4.07B
Net Income(TTM)643.80M
Analysts73.68
Price Target183.25 (22.5%)
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 | 18.38 | ||
| Fwd PE | 16.66 | ||
| P/S | 3.17 | ||
| P/FCF | 18.79 | ||
| P/OCF | 16.44 | ||
| P/B | 6.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.67 |
EPS(TTM)8.14
EY5.44%
EPS(NY)8.98
Fwd EY6%
FCF(TTM)7.96
FCFY5.32%
OCF(TTM)9.1
OCFY6.08%
SpS47.21
BVpS24
TBVpS-7.79
PEG (NY)1.79
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 18.38 and the Price/Book (PB) ratio is 6.23.
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.