ALLEGION PLC (ALLE)
IE00BFRT3W74 - Common Stock
ALLE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Building Products industry. ALLE scores excellent on profitability, but there are some minor concerns on its financial health. ALLE is valied quite expensively at the moment, while it does show a decent 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.
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 has a better Return On Assets (11.50%) than 71.79% of its industry peers.
ALLE has a Return On Equity of 36.41%. This is amongst the best in the industry. ALLE outperforms 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.62%, ALLE is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
ALLE had an Average Return On Invested Capital over the past 3 years of 18.66%. This is significantly above the industry average of 13.66%.
| 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
Looking at the Profit Margin, with a value of 15.36%, ALLE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Profit Margin of ALLE has remained more or less at the same level.
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.
ALLE's Gross Margin of 43.96% is amongst the best of the industry. ALLE outperforms 87.18% 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
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
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 4.10 indicates that ALLE is not in any danger for bankruptcy at the moment.
ALLE has a Altman-Z score of 4.10. This is comparable to the rest of the industry: ALLE outperforms 46.15% of its industry peers.
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.
With a Debt to FCF ratio value of 4.11, ALLE perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that ALLE has dependencies on debt financing.
ALLE's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. ALLE is outperformed by 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 4.1 |
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.
The Current ratio of ALLE (1.71) is worse than 66.67% of its industry peers.
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 has a Quick ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.83% 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 9.11% yearly.
ALLE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.02%.
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
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y8.74%
EPS Next 2Y6.87%
EPS Next 3Y7.58%
EPS Next 5Y8.75%
Revenue Next Year3.06%
Revenue Next 2Y3.56%
Revenue Next 3Y3.8%
Revenue Next 5Y4.73%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.24, ALLE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ALLE is on the same level as its industry peers.
ALLE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.79, ALLE is valued on the expensive side.
ALLE's Price/Forward Earnings ratio is in line with the industry average.
ALLE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALLE.
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 | 21.05 | ||
| EV/EBITDA | 15.3 |
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)2.2
PEG (5Y)2.11
EPS Next 2Y6.87%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
ALLE has a Yearly Dividend Yield of 1.36%.
Compared to an average industry Dividend Yield of 0.94, ALLE pays a better dividend. On top of this ALLE pays more dividend than 92.31% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, ALLE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
On average, the dividend of ALLE grows each year by 16.67%, 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 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
28.86% 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.
DP28.86%
EPS Next 2Y6.87%
EPS Next 3Y7.58%
ALLEGION PLC
NYSE:ALLE (11/21/2024, 8:11:52 PM)
After market: 141.41 0 (0%)141.41
+1.98 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 17.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.2
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 36.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.79% | ||
| PM (TTM) | 15.36% | ||
| GM | 43.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.83%
EPS 3Y10.78%
EPS 5Y
EPS Q2Q%
EPS Next Y8.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.02%
Revenue growth 3Y10.31%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y