Allegion's Brands Secure Pricing Power
This wide-moat security products company is attractively valued.
Allegion (ALLE) is a global security products company that primarily sells mechanical and electronic locks and access control systems, doors, and door frames and hardware. Schlage (locks and access control), Von Duprin (door exit devices), and LCN (door closers and controls) are three of the company’s best-known brands.
Most of Allegion’s revenue and almost all of its segment adjusted operating income, which excludes corporate expenses, are generated from the company’s Americas segment. The Americas segment generates approximately 70% of its revenue from commercial end markets. Management has noted that about half of Allegion’s consolidated revenue comes from product replacements, retrofits, and upgrades. Based on U.S. dollar-denominated revenue, we estimate that Allegion is the third-largest security products company in world, but it’s the second largest in North America.
Brian Bernard does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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