ALLEGION PLC (ALLE)
IE00BFRT3W74 - Common Stock
We assign a fundamental rating of 6 out of 10 to ALLE. ALLE was compared to 39 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
In the past year ALLE was profitable.
In the past year ALLE had a positive cash flow from operations.
ALLE had positive earnings in each of the past 5 years.
Each year in the past 5 years ALLE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.50%, ALLE is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
The Return On Equity of ALLE (36.41%) is better than 92.31% of its industry peers.
ALLE has a better Return On Invested Capital (17.62%) than 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALLE is significantly above the industry average of 13.33%.
| 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
The Profit Margin of ALLE (15.36%) is better than 84.62% of its industry peers.
ALLE's Profit Margin has been stable in the last couple of years.
ALLE has a better Operating Margin (20.79%) than 87.18% of its industry peers.
ALLE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 43.96%, ALLE belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
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
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.
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
An Altman-Z score of 3.99 indicates that ALLE is not in any danger for bankruptcy at the moment.
ALLE has a Altman-Z score of 3.99. This is comparable to the rest of the industry: ALLE outperforms 51.28% of its industry peers.
The Debt to FCF ratio of ALLE is 4.11, which is a neutral value as it means it would take ALLE, 4.11 years of fcf income to pay off all of its debts.
ALLE has a Debt to FCF ratio (4.11) which is comparable to the rest of the industry.
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 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 3.99 |
ROIC/WACC2.61
WACC6.76%
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: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 1.29 indicates that ALLE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.29, ALLE is in line with its industry, outperforming 48.72% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 9.11% 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 3.02% in the last year.
ALLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
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.
ALLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y8.74%
EPS Next 2Y6.87%
EPS Next 3Y7.58%
EPS Next 5Y8.35%
Revenue Next Year3.06%
Revenue Next 2Y3.56%
Revenue Next 3Y3.8%
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
The Price/Earnings ratio is 17.98, which indicates a rather expensive current valuation of ALLE.
ALLE's Price/Earnings is on the same level as the industry average.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.63, ALLE is valued correctly.
Based on the Price/Forward Earnings ratio, ALLE is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
ALLE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALLE.
ALLE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.68 | ||
| EV/EBITDA | 14.6 |
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)2.06
PEG (5Y)1.97
EPS Next 2Y6.87%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, 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 1.07. ALLE pays more dividend than 89.74% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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.
As ALLE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 (12/20/2024, 8:04:00 PM)
After market: 132.18 0 (0%)132.18
+1.55 (+1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.31%
Inst Owner Change0.74%
Ins Owners0.21%
Ins Owner Change1.39%
Market Cap11.49B
Analysts70.59
Price Target150.63 (13.96%)
Short Float %1.68%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Dividend Growth(5Y)16.67%
DP28.86%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)2.12%
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%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 16.63 | ||
| P/S | 3.09 | ||
| P/FCF | 19.68 | ||
| P/OCF | 17.01 | ||
| P/B | 7.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.6 |
EPS(TTM)7.35
EY5.56%
EPS(NY)7.95
Fwd EY6.01%
FCF(TTM)6.72
FCFY5.08%
OCF(TTM)7.77
OCFY5.88%
SpS42.84
BVpS18.07
TBVpS-6.21
PEG (NY)2.06
PEG (5Y)1.97
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 | 3.99 |
F-Score6
WACC6.76%
ROIC/WACC2.61
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 Year3.06%
Revenue Next 2Y3.56%
Revenue Next 3Y3.8%
Revenue Next 5Y6.18%
EBIT growth 1Y7.86%
EBIT growth 3Y8.87%
EBIT growth 5Y6.98%
EBIT Next Year15.76%
EBIT Next 3Y9.34%
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%