ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLE - IE00BFRT3W74 - Common Stock
159.22 USD
-1.91 (-1.19%)
159.22 USD
0 (0%)
ALLE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALLE had positive earnings in the past year.
In the past year ALLE had a positive cash flow from operations.
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
ALLE has a Return On Assets of 12.25%. This is amongst the best in the industry. ALLE outperforms 80.95% of its industry peers.
ALLE's Return On Equity of 32.89% is amongst the best of the industry. ALLE outperforms 88.10% of its industry peers.
ALLE's Return On Invested Capital of 16.30% is amongst the best of the industry. ALLE outperforms 83.33% of its industry peers.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.02%. This is significantly above the industry average of 12.61%.
| 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
With an excellent Profit Margin value of 16.09%, ALLE belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
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
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
ALLE has an Altman-Z score of 4.51. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.51, ALLE is in line with its industry, outperforming 57.14% 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's Debt to FCF ratio of 3.07 is fine compared to the rest of the industry. ALLE outperforms 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's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. ALLE is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.51 |
ROIC/WACC2.29
WACC7.13%
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 (1.77) which is comparable to the rest of the industry.
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.
Measured over the past years, ALLE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.02% on average per year.
ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
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
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.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
ALLE is valuated rather expensively with a Price/Earnings ratio of 19.75.
The rest of the industry has a similar Price/Earnings ratio as ALLE.
The average S&P500 Price/Earnings ratio is at 26.51. ALLE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.55 indicates a rather expensive valuation of ALLE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, ALLE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
61.90% 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 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.14 | ||
| EV/EBITDA | 16.07 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)2.19
EPS Next 2Y9.75%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
ALLE's Dividend Yield is a higher than the industry average which is at 0.72.
ALLE's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of ALLE is nicely growing with an annual growth rate of 12.34%!
ALLE has paid a dividend for at least 10 years, which is 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)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.
ALLE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.92%
EPS Next 2Y9.75%
EPS Next 3Y9.45%
159.22
-1.91 (-1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.87%
Inst Owner Change1.08%
Ins Owners0.25%
Ins Owner Change-2.29%
Market Cap13.70B
Revenue(TTM)3.98B
Net Income(TTM)640.30M
Analysts73.68
Price Target185.93 (16.78%)
Short Float %3.65%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP26.92%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)-0.5%
PT rev (3m)5.96%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 17.55 | ||
| P/S | 3.44 | ||
| P/FCF | 20.14 | ||
| P/OCF | 17.96 | ||
| P/B | 7.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.07 |
EPS(TTM)8.06
EY5.06%
EPS(NY)9.07
Fwd EY5.7%
FCF(TTM)7.91
FCFY4.97%
OCF(TTM)8.87
OCFY5.57%
SpS46.26
BVpS22.63
TBVpS-9.19
PEG (NY)1.82
PEG (5Y)2.19
Graham Number64.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.25% | ||
| ROE | 32.89% | ||
| ROCE | 18.84% | ||
| ROIC | 16.3% | ||
| ROICexc | 17.5% | ||
| ROICexgc | 51.89% | ||
| OM | 20.98% | ||
| 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 | 64.15% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.16% | ||
| Profit Quality | 106.23% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.51 |
F-Score9
WACC7.13%
ROIC/WACC2.29
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 1Y7.81%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year27.49%
EBIT Next 3Y13.77%
EBIT Next 5Y11.21%
FCF growth 1Y38.73%
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 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 19.75 and the Price/Book (PB) ratio is 7.04.
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.