ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - NYSE:ALLE - IE00BFRT3W74 - Common Stock
177.495 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ALLE. ALLE was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make ALLE suitable for quality investing!
1. Profitability
1.1 Basic Checks
ALLE had positive earnings in the past year.
ALLE had a positive operating cash flow in the past year.
In the past 5 years ALLE has always been profitable.
In the past 5 years ALLE always reported a positive cash flow from operatings.
1.2 Ratios
ALLE has a better Return On Assets (12.74%) than 80.49% of its industry peers.
The Return On Equity of ALLE (35.05%) is better than 87.80% of its industry peers.
With an excellent Return On Invested Capital value of 16.86%, ALLE belongs to the best of the industry, outperforming 80.49% 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 12.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 35.05% | ||
| ROIC | 16.86% |
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's Profit Margin of 16.15% is amongst the best of the industry. ALLE outperforms 87.80% of its industry peers.
In the last couple of years the Profit Margin of ALLE has grown nicely.
Looking at the Operating Margin, with a value of 21.04%, ALLE belongs to the top of the industry, outperforming 90.24% 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 44.83%. This is amongst the best in the industry. ALLE outperforms 90.24% of its industry peers.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.04% | ||
| PM (TTM) | 16.15% | ||
| GM | 44.83% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
ALLE has an Altman-Z score of 5.06. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
ALLE has a Altman-Z score (5.06) which is in line with its industry peers.
The Debt to FCF ratio of ALLE is 3.03, which is a good value as it means it would take ALLE, 3.03 years of fcf income to pay off all of its debts.
ALLE's Debt to FCF ratio of 3.03 is fine compared to the rest of the industry. ALLE outperforms 63.41% of its industry peers.
ALLE has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.14, ALLE is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 5.06 |
ROIC/WACC2.34
WACC7.21%
2.3 Liquidity
ALLE has a Current Ratio of 2.30. This indicates that ALLE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALLE (2.30) is better than 65.85% of its industry peers.
ALLE has a Quick Ratio of 1.64. 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 better Quick ratio (1.64) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.08% over the past year.
The Earnings Per Share has been growing by 9.02% on average over the past years. This is quite good.
ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.49%.
Measured over the past years, ALLE shows a small growth in Revenue. The Revenue has been growing by 5.74% on average per year.
EPS 1Y (TTM)11.08%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%4.08%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.84%
3.2 Future
The Earnings Per Share is expected to grow by 9.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.30% on average over the next years. This is quite good.
EPS Next Y10.28%
EPS Next 2Y9.13%
EPS Next 3Y8.79%
EPS Next 5Y9.48%
Revenue Next Year7.21%
Revenue Next 2Y6.5%
Revenue Next 3Y5.85%
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.
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
A Price/Earnings ratio of 22.41 indicates a rather expensive valuation of ALLE.
The rest of the industry has a similar Price/Earnings ratio as ALLE.
Compared to an average S&P500 Price/Earnings ratio of 27.42, ALLE is valued at the same level.
With a Price/Forward Earnings ratio of 19.79, ALLE is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ALLE.
The average S&P500 Price/Forward Earnings ratio is at 22.94. ALLE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 19.79 |
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 68.29% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLE indicates a somewhat cheap valuation: ALLE is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.33 | ||
| EV/EBITDA | 17.77 |
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)2.18
PEG (5Y)2.49
EPS Next 2Y9.13%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.25, ALLE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ALLE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of ALLE grows each year by 12.34%, which is quite nice.
ALLE has been paying a dividend for at least 10 years, so it has 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
27.31% 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.
DP27.31%
EPS Next 2Y9.13%
EPS Next 3Y8.79%
NYSE:ALLE (10/20/2025, 9:31:08 AM)
177.495
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change0.12%
Ins Owners0.25%
Ins Owner Change-1.66%
Market Cap15.24B
Analysts73.68
Price Target177.72 (0.13%)
Short Float %3.38%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1.92
Dividend Growth(5Y)12.34%
DP27.31%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.86%
Min EPS beat(2)0.6%
Max EPS beat(2)9.12%
EPS beat(4)4
Avg EPS beat(4)5.15%
Min EPS beat(4)0.6%
Max EPS beat(4)9.12%
EPS beat(8)8
Avg EPS beat(8)5.41%
EPS beat(12)12
Avg EPS beat(12)6.73%
EPS beat(16)16
Avg EPS beat(16)7.18%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)0%
Max Revenue beat(2)0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.05%
Revenue beat(12)3
Avg Revenue beat(12)-0.25%
Revenue beat(16)5
Avg Revenue beat(16)-0.12%
PT rev (1m)1.28%
PT rev (3m)17.87%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)4.3%
EPS NY rev (1m)0.49%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)3.5%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 19.79 | ||
| P/S | 3.93 | ||
| P/FCF | 22.33 | ||
| P/OCF | 19.92 | ||
| P/B | 8.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.77 |
EPS(TTM)7.92
EY4.46%
EPS(NY)8.97
Fwd EY5.05%
FCF(TTM)7.95
FCFY4.48%
OCF(TTM)8.91
OCFY5.02%
SpS45.16
BVpS20.81
TBVpS-4.47
PEG (NY)2.18
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 35.05% | ||
| ROCE | 19.49% | ||
| ROIC | 16.86% | ||
| ROICexc | 20% | ||
| ROICexgc | 51.92% | ||
| OM | 21.04% | ||
| PM (TTM) | 16.15% | ||
| GM | 44.83% | ||
| FCFM | 17.6% |
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-Score9
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 3.03 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 68.2% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.65% | ||
| Profit Quality | 108.96% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 5.06 |
F-Score9
WACC7.21%
ROIC/WACC2.34
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)11.08%
EPS 3Y13.21%
EPS 5Y9.02%
EPS Q2Q%4.08%
EPS Next Y10.28%
EPS Next 2Y9.13%
EPS Next 3Y8.79%
EPS Next 5Y9.48%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.84%
Revenue Next Year7.21%
Revenue Next 2Y6.5%
Revenue Next 3Y5.85%
Revenue Next 5Y8.3%
EBIT growth 1Y7.97%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year26.63%
EBIT Next 3Y13.04%
EBIT Next 5Y11.16%
FCF growth 1Y36.16%
FCF growth 3Y9.56%
FCF growth 5Y6.64%
OCF growth 1Y31.8%
OCF growth 3Y11.37%
OCF growth 5Y6.69%