Allegion (ALLE) AI Stock Analysis

• Market Cap: $13.92B
• Dividend Yield: 1.27%
• Average Volume (3M): 706.46K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.64
• Revenue Growth: 6.87%
• EPS Growth: 13.53%
• Country: US
• Employees: 14,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 2.30
• Shares Outstanding: 86,031,950
• 10 Day Avg. Volume: 351,919
• 30 Day Avg. Volume: 706,455
• PEG Ratio: 1.68
• Price to Book (P/B): 7.59
• Price to Sales (P/S): 3.02
• P/FCF Ratio: 19.55
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 9.63
• Enterprise Value/Ebitda: 17.72
• 1Y Price Target: $179.29
• Price Target Upside: 12.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $186.00 ▲(16.97% Upside)

Allegion's overall stock score of 72 reflects strong financial performance and a positive earnings call outlook, which are slightly offset by bearish technical indicators and moderate valuation metrics. The company's robust profitability, cash generation, and strategic growth initiatives are significant strengths, while the technical analysis suggests caution in the short term.

Positive Factors

Revenue Growth

Strong revenue growth, particularly in the Americas nonresidential business, indicates robust demand and effective pricing strategies, supporting long-term expansion.

Cash Generation

Increased cash flow enhances Allegion's ability to invest in growth opportunities and strategic acquisitions, ensuring sustained financial health.

Product Portfolio Expansion

Strategic acquisitions expand Allegion's product offerings and market presence, enhancing competitive positioning and supporting long-term growth.

Negative Factors

Margin Pressures

Higher corporate expenses are pressuring margins, which could affect profitability if not managed, impacting long-term financial performance.

Leverage Concerns

Reliance on debt financing could pose risks if not managed carefully, potentially limiting financial flexibility and increasing vulnerability to interest rate changes.

Soft Residential Market

Weak residential market demand could hinder growth in this segment, affecting overall revenue diversification and stability.

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 generates revenue through the sale of its security products, which are categorized into two main segments: Residential and Commercial. The Residential segment focuses on locks and electronic security solutions for homes, while the Commercial segment encompasses a broader range of products designed for businesses, including high-security locking systems and access control technologies. Key revenue streams include direct sales to construction and building projects, distribution through wholesalers, and partnerships with contractors and architects. Additionally, Allegion benefits from ongoing maintenance and service contracts, particularly in commercial settings, which provide a steady income stream. The company's innovation in electronic security solutions and smart home technologies further enhances its market position and revenue potential.

Allegion Financial Statement Overview

Summary

Allegion demonstrates strong financial health with robust profitability and cash generation capabilities. The company has shown consistent revenue and profit growth, supported by efficient operations. While the balance sheet indicates some leverage, the company has managed to improve its debt position over time. The strong cash flow performance further underscores Allegion's financial stability and ability to invest in future growth.

Income Statement

Allegion's income statement shows strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The TTM data indicates a gross profit margin of 45.12% and a net profit margin of 16.09%, reflecting efficient cost management and strong pricing power. Revenue growth has been steady, with a 2.66% increase in the TTM period, indicating a positive growth trajectory. EBIT and EBITDA margins are also robust, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate level of leverage with a debt-to-equity ratio of 1.16 in the TTM period, which has improved from previous years. Return on equity is strong at 37.45%, indicating effective use of shareholder funds to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Allegion's cash flow statement shows healthy cash generation, with a significant increase in free cash flow growth at 137.1% in the TTM period. The operating cash flow to net income ratio is nearly 1, indicating that the company is converting its net income into cash effectively. The free cash flow to net income ratio is also strong at 89.17%, highlighting the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.98B	3.77B	3.65B	3.27B	2.87B	2.72B
Gross Profit	1.80B	1.67B	1.58B	1.32B	1.20B	1.18B
EBITDA	976.20M	916.90M	821.90M	688.30M	657.30M	497.50M
Net Income	640.40M	597.50M	540.40M	458.00M	483.00M	314.30M
Balance Sheet
Total Assets	5.23B	4.49B	4.31B	3.99B	3.05B	3.07B
Cash, Cash Equivalents and Short-Term Investments	302.70M	503.80M	468.10M	288.00M	397.90M	480.40M
Total Debt	2.26B	2.15B	2.02B	2.09B	1.44B	1.43B
Total Liabilities	3.28B	2.99B	2.99B	3.05B	2.29B	2.24B
Stockholders Equity	1.95B	1.50B	1.32B	941.80M	759.10M	829.40M
Cash Flow
Free Cash Flow	702.42M	582.90M	516.40M	395.50M	443.20M	443.20M
Operating Cash Flow	787.71M	675.00M	600.60M	459.50M	488.60M	490.30M
Investing Cash Flow	-717.37M	-228.40M	-129.10M	-994.10M	-31.60M	-56.70M
Financing Cash Flow	-662.30M	-394.50M	-298.70M	437.00M	-529.30M	-321.90M

Allegion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 159.02
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 159.02 is below the 20-day moving average (MA) of 160.63, below the 50-day MA of 162.54, and above the 200-day MA of 154.83, indicating a neutral trend. The MACD of -0.64 indicates Negative momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 49.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALLE.

Allegion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.50B	34.34	25.03%	1.29%	-2.28%	-9.94%
MSA	75 Outperform	$6.63B	23.85	23.35%	1.30%	3.31%	2.58%
BCO	74 Outperform	$5.00B	30.43	61.95%	0.85%	3.07%	48.57%
ALLE	72 Outperform	$13.92B	21.90	36.41%	1.27%	6.87%	13.53%
ADT	69 Neutral	$6.72B	11.71	17.24%	2.73%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	51 Neutral	$5.32B	-7.42	-20.90%	―	15.45%	-488.24%

Allegion Corporate Events

Allegion Amends Credit Agreement, Expands Facility

On December 9, 2025, Allegion plc announced an amendment to its credit agreement, increasing its revolving credit facility from $750 million to $1 billion and extending the maturity date to May 20, 2030. This amendment allows Allegion to request an additional $500 million under certain conditions and involved borrowing $197.2 million to repay an outstanding term loan, resulting in no change to the company’s total debt.

The most recent analyst rating on (ALLE) stock is a Hold with a $187.00 price target. To see the full list of analyst forecasts on Allegion stock, see the ALLE Stock Forecast page.