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ALLE

AllegionNYSE:ALLE Stock Report

Market Cap

US$11.6b

7D

-0.1%

1Y

12.8%

Updated

04 Dec, 2021

Data

Company Financials +
ALLE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends2/6

ALLE Stock Overview

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide.

Allegion Competitors

Fortune Brands Home & Security

NYSE:FBHS

US$14.1b

Brady

NYSE:BRC

US$2.7b

dormakaba Holding

SWX:DOKA

CHF2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Allegion
Historical stock prices
Current Share PriceUS$129.22
52 Week HighUS$148.70
52 Week LowUS$106.52
Beta1.13
1 Month Change-0.13%
3 Month Change-12.77%
1 Year Change12.82%
3 Year Change45.73%
5 Year Change96.74%
Change since IPO166.57%

Recent News & Updates

Nov 04

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.

Nov 04
Here's Why We Think Allegion (NYSE:ALLE) Is Well Worth Watching

Here's Why We Think Allegion (NYSE:ALLE) Is Well Worth Watching

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Oct 24
Is Allegion (NYSE:ALLE) A Risky Investment?

Is Allegion (NYSE:ALLE) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ALLEUS BuildingUS Market
7D-0.1%0.5%-2.7%
1Y12.8%43.6%16.6%

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.

Price Volatility

Is ALLE's price volatile compared to industry and market?
ALLE volatility
ALLE Average Weekly Movement3.3%
Building Industry Average Movement4.7%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
201311,500Dave Petratishttps://www.allegion.com

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

How do Allegion's earnings and revenue compare to its market cap?
ALLE fundamental statistics
Market CapUS$11.59b
Earnings (TTM)US$463.50m
Revenue (TTM)US$2.89b

25.0x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALLE income statement (TTM)
RevenueUS$2.89b
Cost of RevenueUS$1.64b
Gross ProfitUS$1.24b
ExpensesUS$780.00m
EarningsUS$463.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.17
Gross Margin43.09%
Net Profit Margin16.06%
Debt/Equity Ratio164.9%

How did ALLE perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

27%

Payout Ratio

Valuation

Is Allegion undervalued compared to its fair value and its price relative to the market?

25.01x

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).


Future Growth

How is Allegion forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.2%

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%).


Past Performance

How has Allegion performed over the past 5 years?

10.8%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Allegion current dividend yield, its reliability and sustainability?

1.11%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Dave Petratis (63 yo)

8.33yrs

Tenure

US$8,785,585

Compensation

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.


Leadership Team

Experienced Management: ALLE's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: ALLE's board of directors are considered experienced (4.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Allegion plc's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Allegion plc
  • Iveagh Court
  • Block D
  • Dublin
  • Co. Dublin
  • D02 VH94
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/04 00:14
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.