ALLEGION PLC (ALLE) Stock Fundamental Analysis
USA - NYSE:ALLE - IE00BFRT3W74 - Common Stock
177.04 USD
+0.84 (+0.48%)
177.04 USD
0 (0%)
ALLE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making ALLE a very profitable company, without any liquidiy or solvency issues. ALLE is quite expensive at the moment. It does show a decent growth rate. These ratings could make ALLE a good candidate for quality investing.
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.
Each year in the past 5 years ALLE had a positive operating cash flow.
1.2 Ratios
ALLE's Return On Assets of 12.74% is amongst the best of the industry. ALLE outperforms 82.93% of its industry peers.
ALLE has a Return On Equity of 35.05%. This is amongst the best in the industry. ALLE outperforms 87.80% of its industry peers.
The Return On Invested Capital of ALLE (16.86%) is better than 80.49% 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 12.76%.
| 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 has a better Profit Margin (16.15%) than 87.80% of its industry peers.
ALLE's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.04%, ALLE belongs to the best 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.
With an excellent Gross Margin value of 44.83%, ALLE belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
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 | 21.04% | ||
| 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
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.
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 5.04 indicates that ALLE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALLE (5.04) is better than 65.85% of 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.
A Debt/Equity ratio of 1.14 is on the high side and indicates that ALLE has dependencies on debt 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 | 5.04 |
ROIC/WACC2.37
WACC7.12%
2.3 Liquidity
A Current Ratio of 2.30 indicates that ALLE has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.30, ALLE is doing good in the industry, outperforming 63.41% of the companies in the same industry.
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 73.17% 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.
ALLE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.02% yearly.
The Revenue has been growing slightly by 5.49% in the past year.
ALLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.74% yearly.
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 Y9.73%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
EPS Next 5Y9.48%
Revenue Next Year7.26%
Revenue Next 2Y6.49%
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
ALLE is valuated rather expensively with a Price/Earnings ratio of 22.35.
The rest of the industry has a similar Price/Earnings ratio as ALLE.
ALLE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 19.74, the valuation of ALLE can be described as rather expensive.
ALLE's Price/Forward Earnings ratio is in line with the industry average.
ALLE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
60.98% of the companies in the same industry are cheaper than ALLE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALLE is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.28 | ||
| EV/EBITDA | 17.65 |
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)2.3
PEG (5Y)2.48
EPS Next 2Y9.13%
EPS Next 3Y8.52%
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 1.13, ALLE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.15, ALLE pays less dividend than the S&P500 average, which is at 2.38.
| 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 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
27.31% of the earnings are spent on dividend by ALLE. This is a low number and sustainable payout ratio.
ALLE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.31%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
177.04
+0.84 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.19%
Inst Owner Change-0.82%
Ins Owners0.27%
Ins Owner Change-1.66%
Market Cap15.20B
Analysts72.63
Price Target175.47 (-0.89%)
Short Float %3.08%
Short Ratio2.82
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)1.3%
PT rev (3m)19.61%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)4.39%
EPS NY rev (1m)3.25%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 19.74 | ||
| P/S | 3.92 | ||
| P/FCF | 22.28 | ||
| P/OCF | 19.87 | ||
| P/B | 8.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.65 |
EPS(TTM)7.92
EY4.47%
EPS(NY)8.97
Fwd EY5.07%
FCF(TTM)7.95
FCFY4.49%
OCF(TTM)8.91
OCFY5.03%
SpS45.16
BVpS20.81
TBVpS-4.47
PEG (NY)2.3
PEG (5Y)2.48
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 | 5.04 |
F-Score9
WACC7.12%
ROIC/WACC2.37
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 Y9.73%
EPS Next 2Y9.13%
EPS Next 3Y8.52%
EPS Next 5Y9.48%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y9.57%
Revenue growth 5Y5.74%
Sales Q2Q%5.84%
Revenue Next Year7.26%
Revenue Next 2Y6.49%
Revenue Next 3Y5.85%
Revenue Next 5Y8.3%
EBIT growth 1Y7.97%
EBIT growth 3Y14%
EBIT growth 5Y6.69%
EBIT Next Year25.4%
EBIT Next 3Y12.33%
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%