NYSE:ALLE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Allegion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALLE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ALLE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

ALLE

-1.8%

US Building

0.6%

US Market


1 Year Return

-5.3%

ALLE

17.4%

US Building

22.7%

US Market

Return vs Industry: ALLE underperformed the US Building industry which returned 15.7% over the past year.

Return vs Market: ALLE underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

ALLEIndustryMarket
7 Day-0.1%-1.8%0.6%
30 Day15.8%10.2%13.1%
90 Day11.7%8.7%4.5%
1 Year-4.2%-5.3%25.3%17.4%25.5%22.7%
3 Year41.1%36.7%42.3%30.8%49.0%39.1%
5 Year79.9%71.8%99.0%70.8%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Allegion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

34.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALLE ($114.04) is trading above our estimate of fair value ($53.5)

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 (35x) compared to the US Building industry average (24.1x).

PE vs Market: ALLE is poor value based on its PE Ratio (35x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: ALLE is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ALLE is overvalued based on its PB Ratio (12.8x) compared to the US Building industry average (2.8x).


Next Steps

Future Growth

How is Allegion forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALLE's forecast earnings growth (21.5% per year) is above the savings rate (2.2%).

Earnings vs Market: ALLE's earnings (21.5% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALLE's revenue (1.9% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: ALLE's revenue (1.9% 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 (43%).


Next Steps

Past Performance

How has Allegion performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALLE has a large one-off loss of $133.0M impacting its September 30 2020 financial results.

Growing Profit Margin: ALLE's current net profit margins (11.1%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: ALLE's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: ALLE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALLE had negative earnings growth (-33.4%) over the past year, making it difficult to compare to the Building industry average (11.8%).


Return on Equity

High ROE: Whilst ALLE's Return on Equity (36.49%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Allegion's financial position?


Financial Position Analysis

Short Term Liabilities: ALLE's short term assets ($1.1B) exceed its short term liabilities ($489.1M).

Long Term Liabilities: ALLE's short term assets ($1.1B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ALLE's debt to equity ratio (172.8%) is considered high.

Reducing Debt: ALLE's debt to equity ratio has reduced from 5833.8% to 172.8% over the past 5 years.

Debt Coverage: ALLE's debt is well covered by operating cash flow (34.9%).

Interest Coverage: ALLE's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALLE's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ALLE's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.7%), 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 (29.8% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Dave Petratis (62 yo)

7.25yrs

Tenure

US$8,552,445

Compensation

Mr. David D. Petratis, also known as Dave, has been the Chairman of the Board, Chief Executive Officer and President of Allegion Plc since August 2013. Mr. Petratis has been a Vice President of Mikron Indu...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD8.55M) is about average for companies of similar size in the US market ($USD10.83M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Petratis
Chairman7.25yrsUS$8.55m0.24%
$ 24.8m
Patrick Shannon
CFO & Senior VP7.83yrsUS$3.85m0.034%
$ 3.6m
Jeffrey Braun
Chief Compliance Officer6.42yrsUS$1.45m0.011%
$ 1.2m
Timothy Eckersley
Senior VP & President of the Americas Region7.08yrsUS$2.23m0.016%
$ 1.7m
Lucia Moretti
Senior VP & President of EMEA6.67yrsUS$1.33m0.021%
$ 2.2m
Douglas Ranck
Chief Accounting Officer7.83yrsno data0.00093%
$ 97.6k
Vincent Wenos
Senior VP & CTO1.83yrsno data0.0036%
$ 375.8k
Tom Martineau
VP of Investor Relations & Treasurerno datano datano data
Shelleen Meador
Senior VP & CHRO4.83yrsno data0.016%
$ 1.7m
Tracy Kemp
Chief Customer and Digital Officer & Senior VP1.83yrsno data0.0092%
$ 967.7k
Robert Martens
Senior VP and Chief Innovation & Design Officer0.92yrno data0.0012%
$ 127.0k
Hatsuki Miyata
Secretaryno datano datano data

6.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ALLE's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Petratis
Chairman7.25yrsUS$8.55m0.24%
$ 24.8m
Charles Szews
Independent Director2.58yrsUS$240.07k0.0018%
$ 193.1k
Kirk Hachigian
Independent Lead Directorno dataUS$265.07k0.0071%
$ 741.0k
Steven Mizell
Independent Director0.75yrno datano data
Nicole Haughey
Independent Director3.17yrsUS$240.07k0.0018%
$ 193.1k
Martin Welch
Independent Director6.92yrsUS$255.07k0.0069%
$ 722.1k
Dean Schaffer
Independent Director6.58yrsUS$252.07k0.0069%
$ 722.1k
Dev Vardhan
Independent Director0.083yrno datano data

3.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ALLE's board of directors are considered experienced (3.2 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 company bio, 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$10.496b
  • Shares outstanding: 92.04m
  • Website: https://www.allegion.com

Number of Employees


Location

  • Allegion plc
  • Iveagh Court
  • Block D
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALLENYSE (New York Stock Exchange)YesOrdinary Shares USD 0.01USUSDNov 2013
60ADB (Deutsche Boerse AG)YesOrdinary Shares USD 0.01DEEURNov 2013
ALLE NBMV (Bolsa Mexicana de Valores)YesOrdinary Shares USD 0.01MXMXNNov 2013
0Y5CLSE (London Stock Exchange)YesOrdinary Shares USD 0.01GBUSDNov 2013
A1GN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 00:33
End of Day Share Price2020/11/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.