ALLE Stock Overview
Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$129.22|
|52 Week High||US$148.70|
|52 Week Low||US$106.52|
|1 Month Change||-0.13%|
|3 Month Change||-12.77%|
|1 Year Change||12.82%|
|3 Year Change||45.73%|
|5 Year Change||96.74%|
|Change since IPO||166.57%|
Recent News & Updates
Allegion: Accommodative Industry Trends
Allegion is positioned to benefit from an accommodative industry trend manifested in a shift to digital access control systems and locks. The company has historically generated strong cash flows, allowing it to execute its tested capital allocation strategy, which entails dividends, M&A, and debt repayment. Our bullish thesis mirrors ALLE's growth potential, management talent, leading industry position, lucrative cash flows.
Here's Why We Think Allegion (NYSE:ALLE) Is Well Worth Watching
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Is Allegion (NYSE:ALLE) A Risky Investment?
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|ALLE||US Building||US Market|
Return vs Industry: ALLE underperformed the US Building industry which returned 43.6% over the past year.
Return vs Market: ALLE underperformed the US Market which returned 16.6% over the past year.
|ALLE Average Weekly Movement||3.3%|
|Building Industry Average Movement||4.7%|
|Market Average Movement||6.1%|
|10% most volatile stocks in US Market||14.8%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: ALLE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ALLE's weekly volatility (3%) has been stable over the past year.
About the Company
Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door closers and controls; doors and door systems; electronic security products; electronic, biometric, and mobile access control systems; exit devices; locks, locksets, portable locks, and key systems; time, attendance, and workforce productivity systems; and other accessories. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands.
Allegion Fundamentals Summary
|ALLE fundamental statistics|
Is ALLE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ALLE income statement (TTM)|
|Cost of Revenue||US$1.64b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||5.17|
|Net Profit Margin||16.06%|
How did ALLE perform over the long term?See historical performance and comparison
1.1%Current Dividend Yield
Is Allegion undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ALLE ($129.22) is trading above our estimate of fair value ($117.97)
Significantly Below Fair Value: ALLE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ALLE is poor value based on its PE Ratio (25x) compared to the US Building industry average (22.7x).
PE vs Market: ALLE is poor value based on its PE Ratio (25x) compared to the US market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: ALLE is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: ALLE is overvalued based on its PB Ratio (13.4x) compared to the US Building industry average (2.7x).
How is Allegion forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALLE's forecast earnings growth (9.2% per year) is above the savings rate (2%).
Earnings vs Market: ALLE's earnings (9.2% per year) are forecast to grow slower than the US market (13.8% per year).
High Growth Earnings: ALLE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALLE's revenue (6.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: ALLE's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALLE's Return on Equity is forecast to be very high in 3 years time (51.1%).
How has Allegion performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALLE has high quality earnings.
Growing Profit Margin: ALLE's current net profit margins (16.1%) are higher than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: ALLE's earnings have grown by 10.8% per year over the past 5 years.
Accelerating Growth: ALLE's earnings growth over the past year (53.6%) exceeds its 5-year average (10.8% per year).
Earnings vs Industry: ALLE earnings growth over the past year (53.6%) exceeded the Building industry 44.6%.
Return on Equity
High ROE: Whilst ALLE's Return on Equity (53.48%) is outstanding, this metric is skewed due to their high level of debt.
How is Allegion's financial position?
Financial Position Analysis
Short Term Liabilities: ALLE's short term assets ($1.2B) exceed its short term liabilities ($793.9M).
Long Term Liabilities: ALLE's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: ALLE's net debt to equity ratio (106.8%) is considered high.
Reducing Debt: ALLE's debt to equity ratio has reduced from 951.6% to 164.9% over the past 5 years.
Debt Coverage: ALLE's debt is well covered by operating cash flow (38.9%).
Interest Coverage: ALLE's interest payments on its debt are well covered by EBIT (12.5x coverage).
What is Allegion current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALLE's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: ALLE's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.62%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ALLE has been paying a dividend for less than 10 years.
Growing Dividend: ALLE's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.4%), ALLE's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALLE's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dave Petratis (63 yo)
Mr. David D. Petratis, also known as Dave, is a Director at Sylvamo Corporation since 2021. He has been the Chairman of the Board, Chief Executive Officer and President of Allegion Plc since August 2013. M...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD8.79M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Experienced Management: ALLE's management team is seasoned and experienced (5.2 years average tenure).
Experienced Board: ALLE's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALLE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Allegion plc's employee growth, exchange listings and data sources
- Name: Allegion plc
- Ticker: ALLE
- Exchange: NYSE
- Founded: 2013
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$11.590b
- Shares outstanding: 89.70m
- Website: https://www.allegion.com
Number of Employees
- Allegion plc
- Iveagh Court
- Block D
- Co. Dublin
- D02 VH94
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/04 00:14|
|End of Day Share Price||2021/12/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.