ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - NYSE:ALLE - IE00BFRT3W74 - Common Stock
165.55 USD
+0.87 (+0.53%)
165.55 USD
0 (0%)
Taking everything into account, ALLE scores 6 out of 10 in our fundamental rating. ALLE was compared to 41 industry peers in the Building Products industry. ALLE has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, ALLE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ALLE was profitable.
ALLE had a positive operating cash flow in the past year.
Each year in the past 5 years ALLE has been profitable.
ALLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.26%, ALLE belongs to the best of the industry, outperforming 82.93% 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.
The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 12.50%.
| 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 Profit Margin of 16.09%. This is amongst the best in the industry. ALLE outperforms 87.80% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
The Operating Margin of ALLE (20.97%) is better than 92.68% of its industry peers.
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.
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 | 20.97% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
ALLE has a better debt/assets ratio than last year.
2.2 Solvency
ALLE has an Altman-Z score of 4.59. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
ALLE's Altman-Z score of 4.59 is in line compared to the rest of the industry. ALLE outperforms 58.54% 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's Debt to FCF ratio of 3.07 is fine compared to the rest of the industry. ALLE outperforms 63.41% of its industry peers.
ALLE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ALLE (1.06) is worse than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.59 |
ROIC/WACC2.27
WACC7.18%
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 has a Current ratio of 1.77. This is comparable to the rest of the industry: ALLE outperforms 41.46% of its industry peers.
A Quick Ratio of 1.11 indicates that ALLE should not have too much problems paying its short term obligations.
ALLE has a Quick ratio (1.11) which is comparable to the rest of the industry.
| 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.
Looking at the last year, ALLE shows a small growth in Revenue. The Revenue has grown by 6.87% in the last 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
ALLE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
ALLE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.
EPS Next Y10.23%
EPS Next 2Y9.13%
EPS Next 3Y8.8%
EPS Next 5Y9.48%
Revenue Next Year7.16%
Revenue Next 2Y6.47%
Revenue Next 3Y5.84%
Revenue Next 5Y8.3%
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.
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 20.54, which indicates a rather expensive current valuation of ALLE.
ALLE's Price/Earnings is on the same level as the industry average.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
ALLE is valuated rather expensively with a Price/Forward Earnings ratio of 18.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.27. ALLE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
65.85% of the companies in the same industry are cheaper than ALLE, based on the Enterprise Value to EBITDA ratio.
ALLE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 16.54 |
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)2.01
PEG (5Y)2.28
EPS Next 2Y9.13%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, ALLE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.27, ALLE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.23, ALLE pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
On average, the dividend of ALLE grows each year by 12.34%, 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)12.34%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
26.98% of the earnings are spent on dividend by ALLE. This is a low number and 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 2Y9.13%
EPS Next 3Y8.8%
165.55
+0.87 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change-0.56%
Ins Owners0.25%
Ins Owner Change-1.66%
Market Cap14.21B
Revenue(TTM)3.98B
Net Income(TTM)640.40M
Analysts73.68
Price Target186.69 (12.77%)
Short Float %3.08%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
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)6.39%
PT rev (3m)23.82%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 18.46 | ||
| P/S | 3.57 | ||
| P/FCF | 20.9 | ||
| P/OCF | 18.63 | ||
| P/B | 7.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.54 |
EPS(TTM)8.06
EY4.87%
EPS(NY)8.97
Fwd EY5.42%
FCF(TTM)7.92
FCFY4.79%
OCF(TTM)8.88
OCFY5.37%
SpS46.36
BVpS22.67
TBVpS-9.21
PEG (NY)2.01
PEG (5Y)2.28
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
WACC7.18%
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 Y10.23%
EPS Next 2Y9.13%
EPS Next 3Y8.8%
EPS Next 5Y9.48%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%10.66%
Revenue Next Year7.16%
Revenue Next 2Y6.47%
Revenue Next 3Y5.84%
Revenue Next 5Y8.3%
EBIT growth 1Y7.76%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year26.63%
EBIT Next 3Y13.04%
EBIT Next 5Y11.16%
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 6 / 10 to ALLE.
What is the valuation status for ALLE stock?
ChartMill assigns a valuation rating of 3 / 10 to ALLEGION PLC (ALLE). This can be considered as Overvalued.
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 20.54 and the Price/Book (PB) ratio is 7.3.
What is the financial health of ALLEGION PLC (ALLE) stock?
The financial health rating of ALLEGION PLC (ALLE) is 6 / 10.