Allegion (ALLE) AI Stock Analysis

• Market Cap: $12.52B
• Dividend Yield: 1.4%
• Average Volume (3M): 822.23K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.78
• Revenue Growth: 5.48%
• EPS Growth: 16.27%
• Country: US
• Employees: 14,400
• Sector: Industrials
• Sector Strength: 89
• Industry: Security & Protection Services
• EPS (TTM): 1.86
• Shares Outstanding: 86,049,290
• 10 Day Avg. Volume: 696,535
• 30 Day Avg. Volume: 822,234
• PEG Ratio: -6.39
• Price to Book (P/B): 9.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.42
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 3.06
• 1Y Price Target: $147.63
• Price Target Upside: 1.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $170.00 ▲(16.38%Upside)

Allegion's overall score reflects strong financial performance and a positive earnings call, which highlight its growth potential and strategic initiatives. However, technical indicators suggest caution due to overbought conditions, and valuation metrics indicate a fair market price. Challenges in certain segments and tariff uncertainties also temper the outlook.

Positive Factors

Earnings

The stronger margins and a lower tax rate contributed to an adjusted EPS of $1.86, surpassing both Morgan Stanley estimates and consensus.

Financial Performance

The Q1 beat was driven by Americas upside in both organic growth and margins, which supports the stock's strength.

Negative Factors

End Market Environment

Analyst maintains an Underperform rating on ALLE given a negative view of the company’s end markets.

International Operations

Weakness in International in 4Q and expectations for 2025 is for macro softness particularly in Germany.

Market Conditions

The expected muted reaction for ALLE shares is due to negative revisions in next twelve-month consensus forecasts.

Allegion Business Overview & Revenue Model

Company Description

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door closers, controls, 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 and door 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. 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.

How the Company Makes Money

Allegion makes money through the sale of its security products and solutions across various sectors. Its revenue model is primarily product-based, with significant earnings from mechanical security products like locks and door hardware, as well as electronic security solutions including access control and biometric systems. The company also benefits from service contracts, which provide ongoing support and maintenance for their products. Strategic partnerships and acquisitions further enhance Allegion's market reach and technological capabilities, enabling it to maintain a competitive edge in the security industry.

Allegion Financial Statement Overview

Summary

Allegion’s financials reflect strong performance with consistent revenue growth, high profitability, and efficient cash flow management. The company's leverage is moderate, but it effectively uses its equity to generate returns. The financial health is robust, with potential for continued growth in the industry.

Income Statement

Allegion demonstrates strong revenue growth with a steady increase over the years, culminating in a healthy revenue growth rate of 3.73% in TTM. The company maintains robust profitability, evidenced by high gross and net profit margins of 58.07% and 16.28% respectively in TTM. EBITDA and EBIT margins are also strong, reflecting operational efficiency and effective cost management.

Balance Sheet

The balance sheet showcases a solid equity base with an improving equity ratio of 35.21% in TTM. Debt-to-equity ratio is moderately high at 1.24, suggesting a balanced use of debt and equity. Return on Equity stands impressively at 38.70% in TTM, indicating efficient use of shareholder funds to generate profits.

Cash Flow

Allegion's cash flow is robust, with a steady increase in free cash flow, marked by a 10.08% growth in TTM. The company has a strong operating cash flow to net income ratio of 1.17, indicating solid cash generation capabilities. The free cash flow to net income ratio of 1.03 further underscores the company's ability to convert profits into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.82B	3.77B	3.65B	3.27B	2.87B	2.72B
Gross Profit	1.70B	1.67B	1.58B	1.32B	1.20B	1.18B
EBITDA	945.10M	916.90M	821.90M	688.30M	657.30M	497.50M
Net Income	621.90M	597.50M	540.40M	458.00M	483.00M	314.30M
Balance Sheet
Total Assets	4.56B	4.49B	4.31B	3.99B	3.05B	3.07B
Cash, Cash Equivalents and Short-Term Investments	494.50M	503.80M	468.10M	288.00M	397.90M	480.40M
Total Debt	2.00B	2.00B	2.02B	2.09B	1.44B	1.43B
Total Liabilities	2.96B	2.99B	2.99B	3.05B	2.29B	2.24B
Stockholders Equity	1.61B	1.50B	1.32B	944.50M	762.40M	829.40M
Cash Flow
Free Cash Flow	641.70M	582.90M	516.40M	395.50M	443.20M	443.20M
Operating Cash Flow	727.50M	675.00M	600.60M	459.50M	488.60M	490.30M
Investing Cash Flow	-213.00M	-228.40M	-129.10M	-994.10M	-31.60M	-56.70M
Financing Cash Flow	-406.71M	-394.50M	-298.70M	437.00M	-529.30M	-321.90M

Allegion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLE, the sentiment is Positive. The current price of 146.07 is above the 20-day moving average (MA) of 145.08, above the 50-day MA of 142.30, and above the 200-day MA of 135.89, indicating a bullish trend. The MACD of 2.19 indicates Positive momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 26.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLE.

Allegion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	79 Outperform	$1.08B	24.59	27.48%	1.85%	-1.05%	-2.78%
MSA	78 Outperform	$6.71B	23.56	26.22%	1.24%	0.75%	7.20%
REZI	77 Outperform	$3.43B	59.17	2.58%	―	14.02%	-69.91%
ALLE	76 Outperform	$12.52B	20.44	42.05%	1.40%	5.48%	16.27%
ADT	72 Outperform	$7.00B	14.32	16.26%	2.63%	-5.44%	-16.05%
BCO	70 Neutral	$3.86B	24.66	54.50%	1.11%	1.97%	41.88%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%

Allegion Corporate Events

Allegion Holds Annual General Meeting in Dublin

On June 5, 2025, Allegion plc held its Annual General Meeting in Dublin, Ireland, where shareholders elected eight directors, approved executive compensation, ratified PricewaterhouseCoopers as the accounting firm, and renewed the Board’s authority to issue shares under Irish law. These decisions reflect the company’s ongoing governance and strategic initiatives, potentially impacting its operational and financial strategies moving forward.

The most recent analyst rating on (ALLE) stock is a Sell with a $95.00 price target. To see the full list of analyst forecasts on Allegion stock, see the ALLE Stock Forecast page.

Allegion Announces Leadership Transition with New Appointment

Allegion plc announced that Jeffrey Braun, the Senior Vice President and General Counsel, will transition to the role of Senior Vice President and Advisory Counsel effective June 16, 2025. This change follows the appointment of his successor by the Board of Directors on May 20, 2025, and Braun is expected to remain in this role until his retirement on June 30, 2025.

The most recent analyst rating on (ALLE) stock is a Sell with a $95.00 price target. To see the full list of analyst forecasts on Allegion stock, see the ALLE Stock Forecast page.