Wide-moat Allegion’s second-quarter financial performance came in ahead of our expectations, and we’ve raised our fair value estimate 2% to $151 per share due to our more optimistic near-term revenue growth profit margin outlook.
Allegion’s strong market position and pricing power in North America should continue to support stable, industry-leading profitability.
About half of Allegion's revenue is tied to new construction. As such, a downturn in construction spending could materially reduce Allegion's earnings and cash flow.
|
Metric
|
ALLE
|
ASSA B
|
FBIN
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.19 | 19.91 | 19.07 |
Price/Book Value | 8.36 | 3.54 | 4.22 |
Price/Sales | 3.28 | 2.41 | 2.09 |
Price/Cash Flow | 18.95 | 18.99 | 13.31 |
|
Metric
|
ALLE
|
ASSA B
|
FBIN
|
|---|---|---|---|
Quick Ratio | 1.18 | 0.69 | 0.61 |
Current Ratio | 1.66 | 1.10 | 1.34 |
Interest Coverage | 7.77 | 6.84 | 5.49 |
|
Metric
|
ALLE
|
ASSA B
|
FBIN
|
|---|---|---|---|
Return on Assets (Normalized) | 15.05% | 7.49% | 7.66% |
Return on Equity (Normalized) | 50.56% | 16.09% | 22.73% |
Return on Invested Capital (Normalized) | 21.27% | 10.83% | 11.27% |
|
1-Day Chart
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