Allegion (ALLE) AI Stock Analysis

• Market Cap: $14.20B
• Dividend Yield: 1.21%
• Average Volume (3M): 977.22K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.79
• Revenue Growth: 5.49%
• EPS Growth: 14.46%
• Country: US
• Employees: 14,400
• Sector: Industrials
• Sector Strength: 84
• Industry: Security & Protection Services
• EPS (TTM): 2.04
• Shares Outstanding: 85,846,520
• 10 Day Avg. Volume: 1,230,229
• 30 Day Avg. Volume: 977,219
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 14.65
• 1Y Price Target: $168.88
• Price Target Upside: 3.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: $186.00 ▲(13.59% Upside)

Allegion's strong financial performance and positive earnings call are key strengths. Technical analysis shows bullish momentum but with potential overbought conditions. Valuation suggests moderate growth prospects. The combination of these factors results in a solid overall score, with financial stability and strategic growth initiatives being the primary drivers.

Positive Factors

Financial Performance

Allegion consistently surpasses EPS expectations since Stone became CEO, showcasing strong financial performance.

Growth Potential

Commercial markets have bottomed, with signs of growth in sectors like commercial office.

Negative Factors

End-Market Challenges

Residential construction spending remains negative, and non-residential spending is decelerating.

Market Outlook

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

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 exhibits strong financial performance with impressive revenue growth and profitability. The company manages costs effectively, generating robust cash flow. However, the balance sheet's moderate debt level requires careful management to mitigate risks.

Income Statement

Allegion's income statement shows strong profitability with a consistent increase in total revenue over the years. The gross profit margin remains robust, indicating efficient cost management. The net profit margin has also improved, reflecting enhanced profitability. Notably, the company has demonstrated impressive revenue growth, especially in the TTM period, highlighting its capability to leverage market opportunities effectively.

Balance Sheet

The balance sheet reveals a stable financial position with a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. Return on equity has improved, indicating effective use of shareholders' funds. However, the equity ratio is relatively low, implying a higher reliance on liabilities, which could pose a risk if not managed carefully.

Cash Flow

The cash flow statement is strong, with a significant increase in free cash flow, reflecting robust cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating efficient conversion of profits into cash. The company has also shown a positive trend in free cash flow growth, enhancing its ability to fund operations and growth initiatives.

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

Allegion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 163.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 163.74 is above the 20-day moving average (MA) of 158.24, above the 50-day MA of 148.44, and above the 200-day MA of 137.16, indicating a bullish trend. The MACD of 5.22 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.43 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	$1.06B	24.09	27.48%	1.74%	-1.05%	-2.78%
MSA	78 Outperform	$7.07B	25.66	24.23%	1.16%	0.75%	7.20%
ALLE	77 Outperform	$14.20B	22.98	38.99%	1.21%	5.49%	14.46%
ADT	76 Outperform	$6.98B	12.58	17.13%	2.60%	3.80%	-3.18%
REZI	75 Outperform	$4.25B	64.31	-26.27%	―	14.02%	-69.91%
BCO	72 Outperform	$4.20B	26.79	56.23%	0.95%	2.17%	25.34%
Sector *	64 Neutral	$10.64B	16.01	5.48%	2.12%	2.72%	-24.90%

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.