ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock - Currency: USD
ALLE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. ALLE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALLE is not valued too expensively and it also shows a decent growth rate. This makes ALLE very considerable for quality investing!
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.
Each year in the past 5 years ALLE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALLE (13.63%) is better than 82.93% of its industry peers.
Looking at the Return On Equity, with a value of 38.70%, ALLE belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
The Return On Invested Capital of ALLE (17.90%) is better than 85.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALLE is significantly above the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.63% | ||
| ROE | 38.7% | ||
| ROIC | 17.9% |
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 better Profit Margin (16.28%) than 87.80% of its industry peers.
In the last couple of years the Profit Margin of ALLE has grown nicely.
ALLE's Operating Margin of 21.07% is amongst the best of the industry. ALLE outperforms 90.24% of its industry peers.
In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
The Gross Margin of ALLE (44.49%) is better than 87.80% 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 | 21.07% | ||
| PM (TTM) | 16.28% | ||
| GM | 44.49% |
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
ALLE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, ALLE has an improved debt to assets ratio.
2.2 Solvency
ALLE has an Altman-Z score of 4.86. 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 4.86, ALLE is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
The Debt to FCF ratio of ALLE is 3.11, which is a good value as it means it would take ALLE, 3.11 years of fcf income to pay off all of its debts.
ALLE's Debt to FCF ratio of 3.11 is fine compared to the rest of the industry. ALLE outperforms 65.85% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that ALLE has dependencies on debt financing.
ALLE has a worse Debt to Equity ratio (1.23) than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 4.86 |
ROIC/WACC2.52
WACC7.09%
2.3 Liquidity
A Current Ratio of 2.17 indicates that ALLE has no problem at all paying its short term obligations.
ALLE has a Current ratio of 2.17. This is comparable to the rest of the industry: ALLE outperforms 58.54% of its industry peers.
A Quick Ratio of 1.51 indicates that ALLE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, ALLE is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.13% over the past year.
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.
The Revenue has been growing slightly by 5.48% in the past year.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)13.13%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%20%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.37%
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 8.65% yearly.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y6%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
EPS Next 5Y8.65%
Revenue Next Year4.16%
Revenue Next 2Y4.38%
Revenue Next 3Y4.34%
Revenue Next 5Y7.2%
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
The Price/Earnings ratio is 18.98, which indicates a rather expensive current valuation of ALLE.
ALLE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. ALLE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.31 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.
ALLE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 17.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALLE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ALLE is valued a bit cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.93 | ||
| EV/EBITDA | 15.72 |
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)3.16
PEG (5Y)2.1
EPS Next 2Y6.85%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, ALLE has a reasonable but not impressive dividend return.
ALLE's Dividend Yield is rather good when compared to the industry average which is at 1.14. ALLE pays more dividend than 82.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ALLE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 27.09% 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.
DP27.09%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
148.81
-2.72 (-1.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.73%
Inst Owner Change0%
Ins Owners0.26%
Ins Owner Change5.36%
Market Cap12.81B
Analysts70
Price Target146.7 (-1.42%)
Short Float %4.05%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP27.09%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.62%
Min EPS beat(2)4.12%
Max EPS beat(2)9.12%
EPS beat(4)4
Avg EPS beat(4)6.09%
Min EPS beat(4)4.12%
Max EPS beat(4)9.12%
EPS beat(8)8
Avg EPS beat(8)5.44%
EPS beat(12)12
Avg EPS beat(12)6.73%
EPS beat(16)15
Avg EPS beat(16)7.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.42%
Revenue beat(16)6
Avg Revenue beat(16)0.03%
PT rev (1m)1.05%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 17.31 | ||
| P/S | 3.35 | ||
| P/FCF | 19.93 | ||
| P/OCF | 17.58 | ||
| P/B | 7.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)7.84
EY5.27%
EPS(NY)8.6
Fwd EY5.78%
FCF(TTM)7.47
FCFY5.02%
OCF(TTM)8.46
OCFY5.69%
SpS44.4
BVpS18.67
TBVpS-5.46
PEG (NY)3.16
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.63% | ||
| ROE | 38.7% | ||
| ROCE | 20.69% | ||
| ROIC | 17.9% | ||
| ROICexc | 20.51% | ||
| ROICexgc | 52.77% | ||
| OM | 21.07% | ||
| PM (TTM) | 16.28% | ||
| GM | 44.49% | ||
| FCFM | 16.82% |
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%
ROICexcg growth 3Y-1.17%
ROICexcg 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-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 71.55% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.73% | ||
| Profit Quality | 103.3% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 4.86 |
F-Score7
WACC7.09%
ROIC/WACC2.52
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)13.13%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%20%
EPS Next Y6%
EPS Next 2Y6.85%
EPS Next 3Y7.97%
EPS Next 5Y8.65%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.37%
Revenue Next Year4.16%
Revenue Next 2Y4.38%
Revenue Next 3Y4.34%
Revenue Next 5Y7.2%
EBIT growth 1Y9.69%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year21.61%
EBIT Next 3Y11.58%
EBIT Next 5Y9.89%
FCF growth 1Y49.26%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y43.39%
OCF growth 3Y11.37%
OCF growth 5Y6.69%