Allegion Plc

Consumer Discretionary
Diversified Commercial Services
www.allegion.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $12.07B
PE 19
Debt $2.03B
Cash $494.50M
EV $13.61B
FCF $642.40M

Earnings

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Sales & Net Margins

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Earnings	$621.90M
EBIT	$805.00M
ROE	39%
ROA	18%
FCF	$642.40M
Equity	$1.61B
Growth Stability	85%
PE	19.4
PEG	1.39
PB	7.51
P/FCF	18.79
P/S	3.16
Price/Cash	0.04
Debt/Equity	1.27
Debt/FCF	3.17
Net Margins	16%
Gross Margins	44%
Op. Margins	21%
Earnings CAGR	11%
Sales Growth YoY	5%
Sales Growth QoQ	-0%
Sales CAGR	6%
FCF CAGR	7%
Equity CAGR	37%
Earnings Stability	0.79
Earnings Growth YoY	20%
Earnings Growth QoQ	3%
Earnings CAGR 5Y	14%

Sales CAGR 5Y	9%
FCF CAGR 5Y	5%
Equity CAGR 5Y	20%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	28%
Equity CAGR 3Y	31%
Market Cap	$12.07B
Revenue	$3.82B
Dividend Yield	1%
Payout Ratio	27%
Assets	$4.56B
Total Debt	$2.03B
Cash	$494.50M
Shares Outstanding	86.06M
EV	13.61B
Earnings Score	92%
Moat Score	96%
Safety Score	87%
Final Score	92%
Working Capital	789.3M
Current Ratio	2.17
Gross Profit	$1.70B
Shares Growth 3y	-1%
Equity Growth QoQ	7%
Equity Growth YoY	19%

Assets & ROA

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Stockholders Equity & ROE

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Allegion is a global security products company with a portfolio of leading brands, such as Schlage, von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2021, Allegion generated 68% of sales in the United States. The company mainly competes with Swedish-based Assa Abloy AB and Switzerland-based Dormakaba.

SEC Filings

Direct access to Allegion Plc (ALLE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Allegion Plc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Allegion Plc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 11%

Stability 79%

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Allegion Plc Discounted Cash Flow

Fully customizable DCF calculator online for Allegion Plc.

Years

Calculation mode

= $10B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$642M	$687M	$735M	$786M	$840M	$899M	$961M	$1B	$1.1B	$1.2B	$1.3B	$13B
DCF		$625M	$607M	$590M	$574M	$558M	$542M	$527M	$513M	$498M	$485M	$4.8B
Value	$10B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	7%	10%	11%	16%	14%	12%	17%	14%	15%	16%	16%
ROA	-	19%	19%	19%	19%	13%	17%	15%	16%	17%	18%
ROE	-	197%	67%	66%	53%	38%	63%	48%	41%	40%	39%

Good Net Margins (15.73%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	4.37	5.13	3.65	3.41	3.25	3.3	5.36	4.72	3.49	3.17
Debt over Equity	52.03	12.58	3.77	2.28	1.89	1.73	1.92	2.24	1.85	1.36	1.27
Growth Stability	-	-	-	100%	100%	85%	100%	100%	100%	100%	85%

Neutral Debt/FCF ratio (3.17)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.27)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (85%)

The company has a stability in its earnings that is not too good nor too bad.

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	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	8%	8%	13%	4%	-5%	5%	14%	12%	3%	9%
Earnings YoY growth	-	49%	19%	59%	-8%	-22%	54%	-5%	18%	11%	14%
Equity YoY growth	-	292%	248%	61%	16%	9%	-8%	24%	40%	14%	20%
FCF YoY growth	-	51%	-11%	37%	3%	5%	0%	-11%	31%	13%	5%