ALLEGION PLC (ALLE) Stock Fundamental Analysis
NYSE:ALLE - New York Stock Exchange, Inc. - IE00BFRT3W74 - Common Stock
Taking everything into account, ALLE scores 6 out of 10 in our fundamental rating. ALLE was compared to 41 industry peers in the Building Products industry. ALLE has an excellent profitability rating, but there are some minor concerns on its financial health. ALLE has a correct valuation and a medium growth rate.
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.
ALLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 11.50%, ALLE is doing good in the industry, outperforming 72.50% of the companies in the same industry.
The Return On Equity of ALLE (36.41%) is better than 92.50% of its industry peers.
The Return On Invested Capital of ALLE (17.62%) is better than 80.00% of its industry peers.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.66%. This is significantly above the industry average of 13.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 36.41% | ||
| ROIC | 17.62% |
ROA(3y)13.28%
ROA(5y)12.72%
ROE(3y)51.08%
ROE(5y)48.84%
ROIC(3y)18.66%
ROIC(5y)19.27%
1.3 Margins
ALLE has a better Profit Margin (15.36%) than 85.00% of its industry peers.
ALLE's Profit Margin has been stable in the last couple of years.
ALLE has a Operating Margin of 20.79%. This is amongst the best in the industry. ALLE outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of ALLE has remained more or less at the same level.
ALLE has a Gross Margin of 43.96%. This is amongst the best in the industry. ALLE outperforms 87.50% of its industry peers.
ALLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.79% | ||
| PM (TTM) | 15.36% | ||
| GM | 43.96% |
OM growth 3Y-1.3%
OM growth 5Y0.95%
PM growth 3Y8.6%
PM growth 5Y-1.45%
GM growth 3Y-0.16%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALLE is creating value.
ALLE has less shares outstanding than it did 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 4.03. This indicates that ALLE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALLE (4.03) is comparable to the rest of the industry.
ALLE has a debt to FCF ratio of 4.11. This is a neutral value as ALLE would need 4.11 years to pay back of all of its debts.
ALLE has a Debt to FCF ratio of 4.11. This is comparable to the rest of the industry: ALLE outperforms 45.00% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that ALLE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.26, ALLE is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 4.03 |
ROIC/WACC2.65
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ALLE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, ALLE is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
ALLE has a Quick Ratio of 1.29. This is a normal value and indicates that ALLE is financially healthy and should not expect problems in meeting its short term obligations.
ALLE's Quick ratio of 1.29 is in line compared to the rest of the industry. ALLE outperforms 52.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
ALLE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.83%.
Measured over the past years, ALLE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.11% on average per year.
The Revenue has been growing slightly by 3.02% in the past year.
Measured over the past years, ALLE shows a small growth in Revenue. The Revenue has been growing by 5.97% on average per year.
EPS 1Y (TTM)6.83%
EPS 3Y10.78%
EPS 5Y9.11%
EPS Q2Q%11.34%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y10.31%
Revenue growth 5Y5.97%
Sales Q2Q%5.36%
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 8.35% on average per year.
The Revenue is expected to grow by 6.18% on average over the next years.
EPS Next Y8.74%
EPS Next 2Y6.87%
EPS Next 3Y7.58%
EPS Next 5Y8.35%
Revenue Next Year3.08%
Revenue Next 2Y3.51%
Revenue Next 3Y3.75%
Revenue Next 5Y6.18%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.38, the valuation of ALLE can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ALLE indicates a somewhat cheap valuation: ALLE is cheaper than 62.50% of the companies listed in the same industry.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.99, ALLE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLE indicates a somewhat cheap valuation: ALLE is cheaper than 65.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, ALLE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
ALLE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 14.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)2.02
EPS Next 2Y6.87%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.45%.
Compared to an average industry Dividend Yield of 1.05, ALLE pays a better dividend. On top of this ALLE pays more dividend than 87.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
On average, the dividend of ALLE grows each year by 16.67%, 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 in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.67%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
ALLE pays out 28.86% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALLE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.86%
EPS Next 2Y6.87%
EPS Next 3Y7.58%
ALLEGION PLC
NYSE:ALLE (1/21/2025, 8:04:00 PM)
Premarket: 135 -0.07 (-0.05%)135.07
+1.48 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.31%
Inst Owner Change-0.47%
Ins Owners0.21%
Ins Owner Change1.47%
Market Cap11.74B
Analysts71.76
Price Target150.63 (11.52%)
Short Float %2.17%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.81
Dividend Growth(5Y)16.67%
DP28.86%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.56%
Min EPS beat(2)4.36%
Max EPS beat(2)6.75%
EPS beat(4)4
Avg EPS beat(4)4.92%
Min EPS beat(4)3.84%
Max EPS beat(4)6.75%
EPS beat(8)8
Avg EPS beat(8)7.22%
EPS beat(12)12
Avg EPS beat(12)6.85%
EPS beat(16)15
Avg EPS beat(16)8.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.72%
Revenue beat(8)1
Avg Revenue beat(8)-0.65%
Revenue beat(12)4
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)0.56%
PT rev (1m)0%
PT rev (3m)8.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.77%
EPS NY rev (1m)0%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.99 | ||
| P/S | 3.15 | ||
| P/FCF | 20.11 | ||
| P/OCF | 17.38 | ||
| P/B | 7.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.88 |
EPS(TTM)7.35
EY5.44%
EPS(NY)7.95
Fwd EY5.88%
FCF(TTM)6.72
FCFY4.97%
OCF(TTM)7.77
OCFY5.75%
SpS42.84
BVpS18.07
TBVpS-6.21
PEG (NY)2.1
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 36.41% | ||
| ROCE | 19.95% | ||
| ROIC | 17.62% | ||
| ROICexc | 22.78% | ||
| ROICexgc | 76.63% | ||
| OM | 20.79% | ||
| PM (TTM) | 15.36% | ||
| GM | 43.96% | ||
| FCFM | 15.68% |
ROA(3y)13.28%
ROA(5y)12.72%
ROE(3y)51.08%
ROE(5y)48.84%
ROIC(3y)18.66%
ROIC(5y)19.27%
ROICexc(3y)21.58%
ROICexc(5y)22.64%
ROICexgc(3y)67.26%
ROICexgc(5y)67.65%
ROCE(3y)21.13%
ROCE(5y)21.82%
ROICexcg growth 3Y9.53%
ROICexcg growth 5Y1.52%
ROICexc growth 3Y-1.17%
ROICexc growth 5Y0.34%
OM growth 3Y-1.3%
OM growth 5Y0.95%
PM growth 3Y8.6%
PM growth 5Y-1.45%
GM growth 3Y-0.16%
GM growth 5Y0.17%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 78.07% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.76% | ||
| Profit Quality | 102.1% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.03 |
F-Score6
WACC6.66%
ROIC/WACC2.65
Cap/Depr(3y)65.15%
Cap/Depr(5y)66.53%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.98%
Profit Quality(3y)91.22%
Profit Quality(5y)103.97%
High Growth Momentum
Growth
EPS 1Y (TTM)6.83%
EPS 3Y10.78%
EPS 5Y9.11%
EPS Q2Q%11.34%
EPS Next Y8.74%
EPS Next 2Y6.87%
EPS Next 3Y7.58%
EPS Next 5Y8.35%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y10.31%
Revenue growth 5Y5.97%
Sales Q2Q%5.36%
Revenue Next Year3.08%
Revenue Next 2Y3.51%
Revenue Next 3Y3.75%
Revenue Next 5Y6.18%
EBIT growth 1Y7.86%
EBIT growth 3Y8.87%
EBIT growth 5Y6.98%
EBIT Next Year17.2%
EBIT Next 3Y9.65%
EBIT Next 5Y7.97%
FCF growth 1Y71.21%
FCF growth 3Y5.23%
FCF growth 5Y4.79%
OCF growth 1Y69.17%
OCF growth 3Y7%
OCF growth 5Y5.58%