Services-Detective, Guard & Armored Car Services
Allegion 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.
Discounted Cash Flow Valuation of Allegion Plc
In the chart Earnings are multiplied by this value.
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.
The average Net Margin over the past 5 years is +13.96%.
The trend of Net Margin over the past 5 years is +0.39%.
The average ROA over the past 5 years is +17.03%.
The trend of ROA over the past 5 years is -0.93%.
The average ROE over the past 5 years is +56.06%.
The trend of ROE over the past 5 years is -3.4%.
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.
The Debt/FCF trailing twelve month is 4.16.
The trend of Debt/FCF over the past 5 years is -0.00.
Graham’s Stability measure stands at 0.85.
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.
The Revenue CAGR over the past 5 years is +6.32%.
The trend of Revenue growth rate over the past 5 years is +0.69%.
The Earnings CAGR over the past 5 years is +10.88%.
The trend of Earnings growth rate over the past 5 years is -28.88%.
The Equity CAGR over the past 5 years is +18.42%.
The trend of Equity growth rate over the past 5 years is -30%.
The FCF CAGR over the past 5 years is +5.83%.
The trend of FCF growth rate over the past 5 years is -2.31%.