ALLEGION PLC (ALLE) Fundamental Analysis & Valuation
NYSE:ALLE • IE00BFRT3W74
Current stock price
147.21 USD
+2.4 (+1.66%)
At close:
147.21 USD
0 (0%)
After Hours:
This ALLE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ALLE Profitability Analysis
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
- Looking at the Return On Assets, with a value of 12.32%, ALLE is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- ALLE has a better Return On Equity (31.14%) than 85.71% of its industry peers.
- The Return On Invested Capital of ALLE (16.28%) is better than 85.71% of its industry peers.
- ALLE had an Average Return On Invested Capital over the past 3 years of 17.85%. This is significantly above the industry average of 11.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 31.14% | ||
| ROIC | 16.28% |
ROA(3y)12.72%
ROA(5y)13.1%
ROE(3y)37.31%
ROE(5y)44.84%
ROIC(3y)17.85%
ROIC(5y)17.58%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.83%, ALLE belongs to the top 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.
- Looking at the Operating Margin, with a value of 21.13%, ALLE belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
- ALLE has a better Gross Margin (45.20%) than 95.24% of its industry peers.
- ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 15.83% | ||
| GM | 45.2% |
OM growth 3Y4.46%
OM growth 5Y0.47%
PM growth 3Y4.18%
PM growth 5Y6.5%
GM growth 3Y3.8%
GM growth 5Y0.75%
2. ALLE Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALLE is creating value.
- The number of shares outstanding for ALLE has been reduced compared to 1 year ago.
- Compared to 5 years ago, ALLE has less shares outstanding
- ALLE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.44 indicates that ALLE is not in any danger for bankruptcy at the moment.
- ALLE's Altman-Z score of 4.44 is fine compared to the rest of the industry. ALLE outperforms 64.29% of its industry peers.
- ALLE has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as ALLE would need 2.89 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.89, ALLE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ALLE has a Debt/Equity ratio of 0.96. This is a neutral value indicating ALLE is somewhat dependend on debt financing.
- ALLE's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. ALLE is outperformed by 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.44 |
ROIC/WACC2.21
WACC7.36%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that ALLE should not have too much problems paying its short term obligations.
- The Current ratio of ALLE (1.84) is comparable to the rest of the industry.
- ALLE has a Quick Ratio of 1.16. This is a normal value and indicates that ALLE is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.16, ALLE is in line with its industry, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.16 |
3. ALLE Growth Analysis
3.1 Past
- ALLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.10%, which is quite good.
- The Earnings Per Share has been growing by 9.72% on average over the past years. This is quite good.
- Looking at the last year, ALLE shows a small growth in Revenue. The Revenue has grown by 7.82% in the last year.
- Measured over the past years, ALLE shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
EPS 1Y (TTM)8.1%
EPS 3Y12.74%
EPS 5Y9.72%
EPS Q2Q%4.3%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y7.52%
Revenue growth 5Y8.38%
Sales Q2Q%9.26%
3.2 Future
- Based on estimates for the next years, ALLE will show a small growth in Earnings Per Share. The EPS will grow by 7.07% on average per year.
- The Revenue is expected to grow by 6.42% on average over the next years.
EPS Next Y10.31%
EPS Next 2Y9.02%
EPS Next 3Y8.93%
EPS Next 5Y7.07%
Revenue Next Year6.24%
Revenue Next 2Y5.42%
Revenue Next 3Y5.07%
Revenue Next 5Y6.42%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. ALLE Valuation Analysis
4.1 Price/Earnings Ratio
- ALLE is valuated rather expensively with a Price/Earnings ratio of 18.08.
- Based on the Price/Earnings ratio, ALLE is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ALLE to the average of the S&P500 Index (27.18), we can say ALLE is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.39 indicates a correct valuation of ALLE.
- ALLE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALLE is cheaper than 69.05% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 37.96, ALLE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
- ALLE's Enterprise Value to EBITDA is on the same level as the industry average.
- 64.29% of the companies in the same industry are more expensive than ALLE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 14.2 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ALLE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)1.86
EPS Next 2Y9.02%
EPS Next 3Y8.93%
5. ALLE Dividend Analysis
5.1 Amount
- ALLE has a Yearly Dividend Yield of 1.50%.
- Compared to an average industry Dividend Yield of 0.72, ALLE pays a better dividend. On top of this ALLE pays more dividend than 80.95% of the companies listed in the same industry.
- ALLE's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
- On average, the dividend of ALLE grows each year by 9.79%, which is quite nice.
- 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)9.79%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- ALLE pays out 27.23% 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.
DP27.23%
EPS Next 2Y9.02%
EPS Next 3Y8.93%
ALLE Fundamentals: All Metrics, Ratios and Statistics
147.21
+2.4 (+1.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)04-23 2026-04-23
Inst Owners98.8%
Inst Owner Change0.05%
Ins Owners0.28%
Ins Owner Change7.7%
Market Cap12.68B
Revenue(TTM)4.07B
Net Income(TTM)643.80M
Analysts73.68
Price Target180.09 (22.34%)
Short Float %4.05%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend2.03
Dividend Growth(5Y)9.79%
DP27.23%
Div Incr Years11
Div Non Decr Years11
Ex-Date03-13 2026-03-13 (0.55)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.11%
Min EPS beat(2)-4.21%
Max EPS beat(2)1.99%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-4.21%
Max EPS beat(4)9.12%
EPS beat(8)7
Avg EPS beat(8)3.43%
EPS beat(12)11
Avg EPS beat(12)4.68%
EPS beat(16)15
Avg EPS beat(16)5.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)0.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)3
Avg Revenue beat(12)-0.62%
Revenue beat(16)5
Avg Revenue beat(16)-0.29%
PT rev (1m)-1.73%
PT rev (3m)-3.14%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 16.39 | ||
| P/S | 3.12 | ||
| P/FCF | 18.5 | ||
| P/OCF | 16.18 | ||
| P/B | 6.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.2 |
EPS(TTM)8.14
EY5.53%
EPS(NY)8.98
Fwd EY6.1%
FCF(TTM)7.96
FCFY5.41%
OCF(TTM)9.1
OCFY6.18%
SpS47.21
BVpS24
TBVpS-7.79
PEG (NY)1.75
PEG (5Y)1.86
Graham Number66.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.32% | ||
| ROE | 31.14% | ||
| ROCE | 19.24% | ||
| ROIC | 16.28% | ||
| ROICexc | 17.69% | ||
| ROICexgc | 52.96% | ||
| OM | 21.13% | ||
| PM (TTM) | 15.83% | ||
| GM | 45.2% | ||
| FCFM | 16.86% |
ROA(3y)12.72%
ROA(5y)13.1%
ROE(3y)37.31%
ROE(5y)44.84%
ROIC(3y)17.85%
ROIC(5y)17.58%
ROICexc(3y)20.32%
ROICexc(5y)20.08%
ROICexgc(3y)63.95%
ROICexgc(5y)60.35%
ROCE(3y)21.09%
ROCE(5y)20.77%
ROICexgc growth 3Y0.28%
ROICexgc growth 5Y-3.23%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-5.1%
OM growth 3Y4.46%
OM growth 5Y0.47%
PM growth 3Y4.18%
PM growth 5Y6.5%
GM growth 3Y3.8%
GM growth 5Y0.75%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 73.65% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 8.76 | ||
| Cash Conversion | 78.96% | ||
| Profit Quality | 106.51% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.44 |
F-Score6
WACC7.36%
ROIC/WACC2.21
Cap/Depr(3y)75.5%
Cap/Depr(5y)69.3%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.14%
Profit Quality(3y)99.87%
Profit Quality(5y)95.55%
High Growth Momentum
Growth
EPS 1Y (TTM)8.1%
EPS 3Y12.74%
EPS 5Y9.72%
EPS Q2Q%4.3%
EPS Next Y10.31%
EPS Next 2Y9.02%
EPS Next 3Y8.93%
EPS Next 5Y7.07%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y7.52%
Revenue growth 5Y8.38%
Sales Q2Q%9.26%
Revenue Next Year6.24%
Revenue Next 2Y5.42%
Revenue Next 3Y5.07%
Revenue Next 5Y6.42%
EBIT growth 1Y10.04%
EBIT growth 3Y12.32%
EBIT growth 5Y8.89%
EBIT Next Year17.8%
EBIT Next 3Y10.21%
EBIT Next 5Y7.68%
FCF growth 1Y17.64%
FCF growth 3Y20.13%
FCF growth 5Y9.12%
OCF growth 1Y16.12%
OCF growth 3Y19.48%
OCF growth 5Y9.84%
ALLEGION PLC / ALLE Fundamental Analysis 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 5 / 10 to ALLEGION PLC (ALLE). This can be considered as Fairly Valued.
How profitable is ALLEGION PLC (ALLE) stock?
ALLEGION PLC (ALLE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ALLEGION PLC (ALLE) stock?
The Price/Earnings (PE) ratio for ALLEGION PLC (ALLE) is 18.08 and the Price/Book (PB) ratio is 6.13.
Is the dividend of ALLEGION PLC sustainable?
The dividend rating of ALLEGION PLC (ALLE) is 7 / 10 and the dividend payout ratio is 27.23%.