ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock - Currency: USD
ALLE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Building Products industry. While ALLE has a great profitability rating, there are some minor concerns on its financial health. ALLE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ALLE had positive earnings in the past year.
ALLE had a positive operating cash flow in the past year.
Of the past 5 years ALLE 4 years were profitable.
ALLE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ALLE has a Return On Assets of 11.50%. This is in the better half of the industry: ALLE outperforms 70.00% of its industry peers.
ALLE has a better Return On Equity (36.41%) than 90.00% of its industry peers.
ALLE has a better Return On Invested Capital (17.62%) than 82.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 13.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 36.41% | ||
| ROIC | 17.62% |
ROA(3y)13.28%
ROA(5y)12.72%
ROE(3y)51.08%
ROE(5y)48.84%
ROIC(3y)18.66%
ROIC(5y)19.27%
1.3 Margins
ALLE has a better Profit Margin (15.36%) than 80.00% of its industry peers.
ALLE's Profit Margin has been stable in the last couple of years.
ALLE has a better Operating Margin (20.79%) than 87.50% of its industry peers.
ALLE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 43.96%, ALLE belongs to the top of the industry, outperforming 87.50% 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 | 20.79% | ||
| PM (TTM) | 15.36% | ||
| GM | 43.96% |
OM growth 3Y-1.3%
OM growth 5Y0.95%
PM growth 3Y8.6%
PM growth 5Y-1.45%
GM growth 3Y-0.16%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALLE is creating value.
There is no outstanding debt for ALLE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.91 indicates that ALLE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, ALLE is in line with its industry, outperforming 55.00% of the companies in the same industry.
ALLE has a debt to FCF ratio of 4.11. This is a neutral value as ALLE would need 4.11 years to pay back of all of its debts.
ALLE has a Debt to FCF ratio (4.11) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that ALLE has dependencies on debt financing.
ALLE's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. ALLE is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 3.91 |
ROIC/WACC2.66
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE has a Current ratio of 1.71. This is in the lower half of the industry: ALLE underperforms 67.50% of its industry peers.
A Quick Ratio of 1.29 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE has a Quick ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.19% over the past year.
The Earnings Per Share has been growing by 9.02% on average over the past years. This is quite good.
EPS 1Y (TTM)8.19%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%10.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.37%
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 8.39% on average per year.
Based on estimates for the next years, ALLE will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y5.58%
EPS Next 2Y6.78%
EPS Next 3Y8.52%
EPS Next 5Y8.39%
Revenue Next Year3.67%
Revenue Next 2Y3.99%
Revenue Next 3Y6.39%
Revenue Next 5Y6.98%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.89, which indicates a correct valuation of ALLE.
Compared to the rest of the industry, the Price/Earnings ratio of ALLE indicates a somewhat cheap valuation: ALLE is cheaper than 65.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALLE to the average of the S&P500 Index (29.63), we can say ALLE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.99, ALLE is valued correctly.
Based on the Price/Forward Earnings ratio, ALLE is valued a bit cheaper than the industry average as 65.00% 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 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALLE.
ALLE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALLE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)1.87
EPS Next 2Y6.78%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
ALLE's Dividend Yield is rather good when compared to the industry average which is at 1.10. ALLE pays more dividend than 92.50% of the companies in the same industry.
ALLE's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of ALLE is nicely growing with an annual growth rate of 16.67%!
ALLE has been paying a dividend for at least 10 years, so it has a reliable track record.
ALLE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.67%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
ALLE pays out 28.86% 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.
DP28.86%
EPS Next 2Y6.78%
EPS Next 3Y8.52%
127.16
+0.05 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.31%
Inst Owner Change-1.23%
Ins Owners0.21%
Ins Owner Change4.44%
Market Cap11.05B
Analysts70
Price Target145.78 (14.64%)
Short Float %2.57%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend1.81
Dividend Growth(5Y)16.67%
DP28.86%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.56%
Min EPS beat(2)4.36%
Max EPS beat(2)6.75%
EPS beat(4)4
Avg EPS beat(4)4.92%
Min EPS beat(4)3.84%
Max EPS beat(4)6.75%
EPS beat(8)8
Avg EPS beat(8)7.22%
EPS beat(12)12
Avg EPS beat(12)6.85%
EPS beat(16)15
Avg EPS beat(16)8.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.72%
Revenue beat(8)1
Avg Revenue beat(8)-0.65%
Revenue beat(12)4
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)0.56%
PT rev (1m)-3.22%
PT rev (3m)-1.17%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 15.99 | ||
| P/S | 2.97 | ||
| P/FCF | 18.93 | ||
| P/OCF | 16.36 | ||
| P/B | 7.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.1 |
EPS(TTM)7.53
EY5.92%
EPS(NY)7.95
Fwd EY6.25%
FCF(TTM)6.72
FCFY5.28%
OCF(TTM)7.77
OCFY6.11%
SpS42.84
BVpS18.07
TBVpS-6.21
PEG (NY)3.02
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 36.41% | ||
| ROCE | 19.95% | ||
| ROIC | 17.62% | ||
| ROICexc | 22.78% | ||
| ROICexgc | 76.63% | ||
| OM | 20.79% | ||
| PM (TTM) | 15.36% | ||
| GM | 43.96% | ||
| FCFM | 15.68% |
ROA(3y)13.28%
ROA(5y)12.72%
ROE(3y)51.08%
ROE(5y)48.84%
ROIC(3y)18.66%
ROIC(5y)19.27%
ROICexc(3y)21.58%
ROICexc(5y)22.64%
ROICexgc(3y)67.26%
ROICexgc(5y)67.65%
ROCE(3y)21.13%
ROCE(5y)21.82%
ROICexcg growth 3Y9.53%
ROICexcg growth 5Y1.52%
ROICexc growth 3Y-1.17%
ROICexc growth 5Y0.34%
OM growth 3Y-1.3%
OM growth 5Y0.95%
PM growth 3Y8.6%
PM growth 5Y-1.45%
GM growth 3Y-0.16%
GM growth 5Y0.17%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 78.07% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.76% | ||
| Profit Quality | 102.1% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.91 |
F-Score6
WACC6.63%
ROIC/WACC2.66
Cap/Depr(3y)65.15%
Cap/Depr(5y)66.53%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.98%
Profit Quality(3y)91.22%
Profit Quality(5y)103.97%
High Growth Momentum
Growth
EPS 1Y (TTM)8.19%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%10.71%
EPS Next Y5.58%
EPS Next 2Y6.78%
EPS Next 3Y8.52%
EPS Next 5Y8.39%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.37%
Revenue Next Year3.67%
Revenue Next 2Y3.99%
Revenue Next 3Y6.39%
Revenue Next 5Y6.98%
EBIT growth 1Y7.86%
EBIT growth 3Y8.87%
EBIT growth 5Y6.98%
EBIT Next Year16.35%
EBIT Next 3Y9.34%
EBIT Next 5Y7.97%
FCF growth 1Y71.21%
FCF growth 3Y5.23%
FCF growth 5Y4.79%
OCF growth 1Y69.17%
OCF growth 3Y7%
OCF growth 5Y5.58%