Allegion PLC (ALLE)
NYSE:ALLE
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Allegion
(NYSE:ALLE)
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Rating:71Outperform
Price Target:
$141.00
▼(-2.30% Downside)
Action:Upgraded
Date:06/10/26
The score is primarily supported by strong profitability and generally good cash generation, alongside reaffirmed full-year guidance. It is held back by weak technical momentum (price below key moving averages and negative MACD) and near-term execution/margin pressures highlighted on the earnings call (ERP disruption, tariff/COGS headwinds, and Q1 margin compression). Valuation is reasonable and the dividend adds modest support.
Positive Factors
High profitability
Sustained high gross and net margins indicate durable pricing power and efficient manufacturing/engineering for core lock and hardware products. These margins support consistent operating cash flow, fund reinvestment in electronic solutions, and provide buffer versus cyclical construction demand.
Negative Factors
Meaningful leverage
Debt levels above equity raise financial risk and constrain flexibility for large investments or cushioning during demand downturns. Interest and leverage magnify earnings volatility and can limit the pace of share repurchases or acquisitions if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained high gross and net margins indicate durable pricing power and efficient manufacturing/engineering for core lock and hardware products. These margins support consistent operating cash flow, fund reinvestment in electronic solutions, and provide buffer versus cyclical construction demand.
Read all positive factors
Allegion Key Performance Indicators (KPIs)
Allegion (ALLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.48B
Dividend Yield1.27%
Average Volume (3M)966.11K
Price to Earnings (P/E)18.1
Beta (1Y)0.58
Revenue Growth8.87%
EPS Growth2.90%
CountryUS
Employees14,400
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)7.37
Shares Outstanding85,935,860
10 Day Avg. Volume1,130,822
30 Day Avg. Volume966,112
Financial Highlights & Ratios
PEG Ratio2.28
Price to Book (P/B)6.61
Price to Sales (P/S)3.36
P/FCF Ratio19.95
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.10
Enterprise Value/Gross Profit6.90
Enterprise Value/Ebitda12.90
Forecast
1Y Price Target
$161.11Price Target Upside11.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)8.78
Revenue Forecast (FY)$4.38B
Allegion Business Overview & Revenue Model
Company Description
Allegion plc operates as a worldwide provider, specializing in the manufacturing and sale of both mechanical and electronic security goods and comprehensive solutions. Their diverse product offering encompasses essential security hardware such as ...
How the Company Makes Money
Allegion makes money primarily by selling security and access-related products and solutions. Its core revenue stream is product sales of mechanical locks and door hardware (e.g., locksets, cylinders, door closers, exit devices) for commercial/ins...
Allegion Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a cautiously positive tone: strong reported revenue growth (nearly 10%), affirmed organic growth and EPS guidance, strategic M&A (DCI) and robust capital deployment actions (dividend, $500M buyback). However, meaningful near-term challenges remain — notable margin compression (down 150 bps), a Q1 EPS decline, international organic weakness tied to an ERP implementation, and an incremental ~1% COGS headwind from tariffs/inflation. Management expects execution improvements, recovery of the ERP-related shortfall over the year, and margin expansion in the back half, supporting an overall constructive but watchful outlook.Positive Updates
Strong Top-Line Growth
Reported revenue for Q1 exceeded $1.0 billion, up 9.7% year-over-year; enterprise organic revenue increased 2.6% driven by the Americas nonresidential business.
Negative Updates
Margin Compression Across the Enterprise
Q1 adjusted operating margin was 21.2%, down 150 basis points year-over-year; Americas adjusted operating margin was down ~110 basis points and International margin declined ~220 basis points, driven by mix, volume declines and ERP-related inefficiencies.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Reported revenue for Q1 exceeded $1.0 billion, up 9.7% year-over-year; enterprise organic revenue increased 2.6% driven by the Americas nonresidential business.
Read all positive updates
Company Guidance
Allegion reaffirmed 2026 guidance, raising reported revenue to 6–8% (up 1 point to include the DCI acquisition) while affirming organic revenue growth of 2–4% and adjusted EPS of $8.70–$8.90. Management expects to offset an estimated ~1% of COGS headwind from tariffs/inflation with price and cost actions (targeting neutrality to full‑year adjusted operating income dollars and EPS), plans to recover the Q1 ERP‑related international shortfall over the remainder of the year, and noted DCI’s low‑double‑digit EBITDA margin will give limited EPS accretion this year and roughly a 30‑bp full‑year margin drag. Capital deployment metrics include Q1 dividends of $47M, Q1 share repurchases of $40M, a new $500M buyback authorization, year‑to‑date available cash flow of $80.3M with expected ACF conversion of ~85–95% of adjusted net income, and net debt/adjusted EBITDA of 1.7x; for context Q1 revenue was >$1B (+9.7% y/y; organic +2.6%), Q1 adjusted operating margin was 21.2% (‑150 bps) and Q1 adjusted EPS was $1.80 (‑$0.06).Allegion Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.16B | 4.07B | 3.77B | 3.65B | 3.27B | 2.87B |
| Gross Profit | 1.87B | 1.84B | 1.67B | 1.58B | 1.32B | 1.20B |
| EBITDA | 1.00B | 999.10M | 916.90M | 821.90M | 688.30M | 657.30M |
| Net Income | 633.70M | 643.80M | 597.50M | 540.40M | 458.00M | 483.00M |
Balance Sheet | ||||||
| Total Assets | 5.31B | 5.22B | 4.49B | 4.31B | 3.99B | 3.05B |
| Cash, Cash Equivalents and Short-Term Investments | 308.90M | 356.20M | 503.80M | 468.10M | 288.00M | 397.90M |
| Total Debt | 2.03B | 2.28B | 2.15B | 2.02B | 2.09B | 1.44B |
| Total Liabilities | 3.21B | 3.16B | 2.99B | 2.99B | 3.05B | 2.29B |
| Stockholders Equity | 2.10B | 2.07B | 1.50B | 1.32B | 941.80M | 759.10M |
Cash Flow | ||||||
| Free Cash Flow | 704.05M | 685.70M | 582.90M | 516.40M | 395.50M | 443.20M |
| Operating Cash Flow | 805.12M | 783.80M | 675.00M | 600.60M | 459.50M | 488.60M |
| Investing Cash Flow | -775.83M | -685.50M | -228.40M | -129.10M | -994.10M | -31.60M |
| Financing Cash Flow | -232.45M | -266.70M | -394.50M | -298.70M | 437.00M | -529.30M |
Allegion Technical Analysis
Neutral
144.32
Price Trends
134.82
Negative
145.13
Negative
155.57
Negative
Market Momentum
-0.25
Negative
53.09
Neutral
57.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLE, the sentiment is Neutral. The current price of 144.32 is above the 20-day moving average (MA) of 130.77, above the 50-day MA of 134.82, and below the 200-day MA of 155.57, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALLE.
Allegion Risk Analysis
Allegion disclosed 37 risk factors in its most recent earnings report. Allegion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allegion Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.35B | 21.98 | 22.02% | 1.30% | 5.56% | 2.16% | |
71 Outperform | $11.48B | 18.15 | 32.08% | 1.27% | 8.87% | 2.90% | |
70 Outperform | $5.20B | 8.60 | 16.74% | 2.73% | 3.29% | 22.63% | |
68 Neutral | $1.34B | 36.17 | 20.86% | 1.29% | 8.83% | -16.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.02B | 22.38 | 67.82% | 0.85% | 7.31% | 14.99% | |
48 Neutral | $4.83B | -9.73 | -17.64% | ― | 8.08% | -1039.66% |
* Industrials Sector Average
ALLE
Allegion
133.57
-6.91
-4.92%
BCO
Brink's Company
97.67
12.70
14.94%
MSA
MSA Safety
164.39
<0.01
<0.01%
NSSC
Napco Security Technologies
37.39
10.19
37.47%
ADT
Adt
6.58
-1.46
-18.21%
REZI
Resideo Technologies
31.91
10.13
46.51%
Allegion Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Allegion Shareholders Reaffirm Board, Pay and Capital Flexibility
Positive
Jun 9, 2026
On June 4, 2026, Allegion shareholders met in Dublin for the company’s 2026 annual general meeting and re-elected all eight board nominees to one-year terms, while also giving advisory approval to the compensation of named executive officers...
Business Operations and StrategyStock Buyback
Allegion Expands Share Repurchase Authorization by $500 Million
Positive
Apr 15, 2026
On April 15, 2026, Allegion’s board of directors replenished its existing share repurchase program, authorizing the company to buy back up to $500 million of its ordinary shares. The repurchases may be executed over time through open-market ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.