ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALLE • IE00BFRT3W74
165.39 USD
+0.93 (+0.57%)
At close: Jan 30, 2026
165.39 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to ALLE. 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. 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.
- ALLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ALLE's Return On Assets of 12.25% is amongst the best of the industry. ALLE outperforms 80.95% of its industry peers.
- The Return On Equity of ALLE (32.89%) is better than 88.10% of its industry peers.
- The Return On Invested Capital of ALLE (16.30%) is better than 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 12.68%.
| 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 Profit Margin of 16.09%. This is amongst the best in the industry. ALLE outperforms 88.10% of its industry peers.
- In the last couple of years the Profit Margin of ALLE has grown nicely.
- With an excellent Operating Margin value of 20.98%, ALLE belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- ALLE's Operating Margin has been stable in the last couple of years.
- ALLE has a Gross Margin of 45.12%. This is amongst the best in the industry. ALLE outperforms 92.86% 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 | 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALLE is creating value.
- Compared to 1 year ago, ALLE has less shares outstanding
- The number of shares outstanding for ALLE has been reduced compared to 5 years ago.
- Compared to 1 year ago, ALLE has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.60 indicates that ALLE is not in any danger for bankruptcy at the moment.
- ALLE's Altman-Z score of 4.60 is in line compared to the rest of the industry. ALLE outperforms 59.52% of its industry peers.
- 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 better Debt to FCF ratio (3.07) than 61.90% 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 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.6 |
ROIC/WACC2.18
WACC7.48%
2.3 Liquidity
- ALLE has a Current Ratio of 1.77. 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 Current ratio of 1.77 is on the low side compared to the rest of the industry. ALLE is outperformed by 64.29% 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 has a Quick ratio of 1.11. This is in the lower half of the industry: ALLE underperforms 61.90% 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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.
- 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 2Y9.56%
EPS Next 3Y9.36%
EPS Next 5Y9.33%
Revenue Next Year8.07%
Revenue Next 2Y7.2%
Revenue Next 3Y6.43%
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.
- 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
- With a Price/Earnings ratio of 20.52, ALLE is valued on the expensive side.
- 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 (28.32), we can say ALLE is valued slightly cheaper.
- ALLE is valuated rather expensively with a Price/Forward Earnings ratio of 18.30.
- The rest of the industry has a similar Price/Forward Earnings ratio as ALLE.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ALLE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 18.3 |
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 61.90% of the companies listed in the same industry.
- ALLE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.92 | ||
| EV/EBITDA | 16.62 |
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)2.28
EPS Next 2Y9.56%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.24%, ALLE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.68, ALLE pays a bit more dividend than its industry peers.
- ALLE's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- The dividend of ALLE is nicely growing with an annual growth rate of 12.34%!
- ALLE has been paying a dividend for at least 10 years, so it has a reliable track record.
- ALLE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.34%
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.
- The dividend of ALLE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.92%
EPS Next 2Y9.56%
EPS Next 3Y9.36%
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 20.52 and the Price/Book (PB) ratio is 7.31.
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.