ALLEGION PLC (ALLE) Fundamental Analysis & Valuation
NYSE:ALLE • IE00BFRT3W74
150.37 USD
-1.89 (-1.24%)
At close: Mar 6, 2026
150.37 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
This ALLE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, ALLE scores 7 out of 10 in our fundamental rating. ALLE was compared to 42 industry peers in the Building Products industry. While ALLE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALLE is not valued too expensively and it also shows a decent growth rate.
1. ALLE Profitability Analysis
1.1 Basic Checks
- ALLE had positive earnings in the past year.
- In the past year ALLE had a positive cash flow from operations.
- 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
- ALLE has a better Return On Assets (12.32%) than 80.95% of its industry peers.
- Looking at the Return On Equity, with a value of 31.14%, ALLE belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 16.28%, ALLE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- ALLE had an Average Return On Invested Capital over the past 3 years of 17.85%. This is significantly above the industry average of 11.88%.
| 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
- ALLE has a Profit Margin of 15.83%. This is amongst the best in the industry. ALLE outperforms 90.48% of its industry peers.
- ALLE's Profit Margin has improved in the last couple of years.
- The Operating Margin of ALLE (21.13%) is better than 90.48% 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 45.20%, ALLE belongs to the top of the industry, outperforming 95.24% 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 | 21.13% | ||
| 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
- ALLE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ALLE has less shares outstanding
- The number of shares outstanding for ALLE has been reduced compared to 5 years ago.
- The debt/assets ratio for ALLE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.56 indicates that ALLE is not in any danger for bankruptcy at the moment.
- ALLE has a Altman-Z score of 4.56. This is in the better half of the industry: ALLE outperforms 64.29% of its industry peers.
- The Debt to FCF ratio of ALLE is 2.89, which is a good value as it means it would take ALLE, 2.89 years of fcf income to pay off all of its debts.
- ALLE has a better Debt to FCF ratio (2.89) than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.96 indicates that ALLE is somewhat dependend on debt financing.
- ALLE has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: ALLE underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.56 |
ROIC/WACC2.25
WACC7.23%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that ALLE should not have too much problems paying its short term obligations.
- ALLE has a Current ratio of 1.84. This is comparable to the rest of the industry: ALLE outperforms 45.24% of its industry peers.
- A Quick Ratio of 1.16 indicates that ALLE should not have too much problems paying its short term obligations.
- ALLE's Quick ratio of 1.16 is in line compared to the rest of the industry. ALLE outperforms 52.38% of its industry peers.
| 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 quite strong growth in Earnings Per Share. The EPS will grow by 9.64% on average per year.
- Based on estimates for the next years, ALLE will show a small growth in Revenue. The Revenue will grow by 6.35% on average per year.
EPS Next Y10.98%
EPS Next 2Y9.83%
EPS Next 3Y11.79%
EPS Next 5Y9.64%
Revenue Next Year6.29%
Revenue Next 2Y5.54%
Revenue Next 3Y8.1%
Revenue Next 5Y6.35%
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.
- 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
- With a Price/Earnings ratio of 18.47, ALLE is valued on the expensive side.
- 61.90% of the companies in the same industry are more expensive than ALLE, based on the Price/Earnings ratio.
- ALLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
- The Price/Forward Earnings ratio is 16.65, which indicates a correct valuation of ALLE.
- Based on the Price/Forward Earnings ratio, ALLE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, ALLE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALLE is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLE indicates a somewhat cheap valuation: ALLE is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.87 | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ALLE may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)1.9
EPS Next 2Y9.83%
EPS Next 3Y11.79%
5. ALLE Dividend Analysis
5.1 Amount
- ALLE has a Yearly Dividend Yield of 1.37%.
- ALLE's Dividend Yield is rather good when compared to the industry average which is at 0.67. ALLE pays more dividend than 80.95% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
- The dividend of ALLE is nicely growing with an annual growth rate of 9.79%!
- 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)9.79%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 27.23% 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.
DP27.23%
EPS Next 2Y9.83%
EPS Next 3Y11.79%
ALLE Fundamentals: All Metrics, Ratios and Statistics
150.37
-1.89 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)02-17 2026-02-17/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners98.16%
Inst Owner Change-1.67%
Ins Owners0.25%
Ins Owner Change7.7%
Market Cap12.94B
Revenue(TTM)4.07B
Net Income(TTM)643.80M
Analysts73.68
Price Target183.25 (21.87%)
Short Float %2.96%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.03
Dividend Growth(5Y)9.79%
DP27.23%
Div Incr Years10
Div Non Decr Years10
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)-1.1%
PT rev (3m)-1.93%
EPS NQ rev (1m)-4.71%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 16.65 | ||
| P/S | 3.18 | ||
| P/FCF | 18.87 | ||
| P/OCF | 16.5 | ||
| P/B | 6.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.83 |
EPS(TTM)8.14
EY5.41%
EPS(NY)9.03
Fwd EY6.01%
FCF(TTM)7.97
FCFY5.3%
OCF(TTM)9.11
OCFY6.06%
SpS47.28
BVpS24.03
TBVpS-7.8
PEG (NY)1.68
PEG (5Y)1.9
Graham Number66.35
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 | 4.56 |
F-Score6
WACC7.23%
ROIC/WACC2.25
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 Y10.98%
EPS Next 2Y9.83%
EPS Next 3Y11.79%
EPS Next 5Y9.64%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y7.52%
Revenue growth 5Y8.38%
Sales Q2Q%9.26%
Revenue Next Year6.29%
Revenue Next 2Y5.54%
Revenue Next 3Y8.1%
Revenue Next 5Y6.35%
EBIT growth 1Y10.04%
EBIT growth 3Y12.32%
EBIT growth 5Y8.89%
EBIT Next Year17.8%
EBIT Next 3Y10.21%
EBIT Next 5Y9.81%
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 FAQ
Can you provide the ChartMill fundamental rating for ALLEGION PLC?
ChartMill assigns a fundamental rating of 7 / 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.
What is the profitability of ALLE stock?
ALLEGION PLC (ALLE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ALLE stock?
The Price/Earnings (PE) ratio for ALLEGION PLC (ALLE) is 18.47 and the Price/Book (PB) ratio is 6.26.
What is the expected EPS growth for ALLEGION PLC (ALLE) stock?
The Earnings per Share (EPS) of ALLEGION PLC (ALLE) is expected to grow by 10.98% in the next year.