Allegion Plc
ALLE
Services-Detective, Guard & Armored Car Services
Mkt Cap
$9.15BPE
16.42Debt
$2.041BCash
$364.3MEV
$10.83BFCF
$490.3MP/E Ratio
16.42Debt
$2.041BCash
$364.3MEV
$10.83BFCF
$490.3MAllegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door controls and systems and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors, accessories, and other. It also provides services and software, which includes inspection, maintenance, and repair services for its automatic entrance solutions; and software as a service, including access control, IoT integration, and workforce management solutions, as well as aftermarket services, design and installation offerings, and locksmith services. 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. It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, on-line and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.
Sector
DCF
Discounted Cash Flow Valuation of Allegion Plc
Value
Growth
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%
Discount
%
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $490.3M | $538.9M | $589.4M | $641.4M | $694.5M | $748.2M | $801.9M | $855.2M | $907.3M | $957.6M | $1.005B | $10.05B |
| DCF | $468.6M | $445.7M | $421.7M | $397.1M | $372M | $346.7M | $321.5M | $296.6M | $272.2M | $248.5M | $2.485B | |
| Value | $6.076B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 15%
Earnings Stability 79%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 8.1% | 7.4% | 10% | 11% | 16% | 14% | 12% | 17% | 14% | 15% |
| ROA | 16% | 16% | 19% | 19% | 19% | 19% | 13% | 17% | 15% | 17% |
| ROE | 930% | 520% | 200% | 67% | 66% | 53% | 38% | 63% | 48% | 45% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +13.96%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.39%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +17.03%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.93%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +56.06%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -3.4%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 6.09 | 6.95 | 4.37 | 5.13 | 3.65 | 3.41 | 3.25 | 3.30 | 5.36 | 4.16 |
| Debt Equity | 68.36 | 52.03 | 12.58 | 3.77 | 2.28 | 1.89 | 1.73 | 1.92 | 2.24 | 1.66 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 85% | 100% | 100% | 85% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 4.16.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.00.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.85.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.8% | 6.3% | 4.7% | 14% | 0.69% |
| Net Income | 17% | 11% | 4.5% | -5.2% | -29% |
| Stockholders Equity | 64% | 18% | 7.5% | 24% | -30% |
| FCF | 8.6% | 5.8% | -2.2% | -11% | -2.3% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +6.32%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.69%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +10.88%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -28.88%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +18.42%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -30%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +5.83%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -2.31%.