Skip to Content

Allegion PLC ALLE

Morningstar Rating
$116.44 −2.72 (2.28%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Margin Expansion Continues for Wide-Moat-Rated Allegion

Allegion, a global leader in security products and solutions, was spun off from Ingersoll-Rand in December 2013. No longer forced to compete for capital from a conglomerate parent, Allegion has employed a more robust acquisition strategy to expand its scale, technological capabilities, and product portfolio. At roughly 80% of sales and 90% of segment profitability, the Americas segment is Allegion's largest and strongest business, with a leading position in locks, exit devices, and door controls. The Americas business has been the key driver of Allegion’s stable, industry-leading profitability, which is a testament to the firm’s market position and pricing power. We expect the Americas business to post mid- to high-single-digit organic growth, on average, over the next five years as the segment capitalizes on the convergence of electronics and mechanical security solutions, and on the increased retrofitting, upgrading, and spending across commercial and residential end markets. The segment’s already strong profit margins should benefit from a mix shift to higher-priced electronics products and operating leverage on increased volume, partially offset by structurally lower profit margins from the acquired access technologies business.

Price vs Fair Value

ALLE is trading at a 158% premium.
Price
$119.16
Fair Value
$688.00
Uncertainty
Medium
1-Star Price
$219.43
5-Star Price
$923.30
Economic Moat
Zfzw
Capital Allocation
Qptltrl

Bulls Say, Bears Say

Bulls

Allegion’s strong market position and pricing power in North America should continue to support stable, industry-leading profitability.

Bears

Increased acceptance of work-from-home arrangements could reduce demand for commercial real estate, lowering Allegion's total addressable market.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ALLE is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$119.16
Day Range
$114.94117.73
52-Week Range
$96.17136.82
Bid/Ask
$116.42 / $116.53
Market Cap
$10.18 Bil
Volume/Avg
141,945 / 572,272

Key Statistics

Price/Earnings (Normalized)
17.20
Price/Sales
2.90
Dividend Yield (Trailing)
1.54%
Dividend Yield (Forward)
1.61%
Total Yield
2.49%

Company Profile

Allegion is a global security products company with a portfolio of leading brands such as Schlage, Von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2023, Allegion generated 75% of sales in the United States. The company primarily competes with Sweden-based Assa Abloy and Switzerland-based Dormakaba.
Sector
Industrials
Industry
Security & Protection Services
Stock Style Box
Mid Core
Total Number of Employees
12,400

Competitors

Valuation

Metric
ALLE
CARR
ASSA B
Price/Earnings (Normalized)
17.2022.6119.70
Price/Book Value
7.714.993.45
Price/Sales
2.902.412.40
Price/Cash Flow
16.9825.7919.80
Price/Earnings
ALLE
CARR
ASSA B

Financial Strength

Metric
ALLE
CARR
ASSA B
Quick Ratio
0.820.550.70
Current Ratio
1.311.361.13
Interest Coverage
7.634.768.09
Quick Ratio
ALLE
CARR
ASSA B

Profitability

Metric
ALLE
CARR
ASSA B
Return on Assets (Normalized)
14.53%8.02%8.86%
Return on Equity (Normalized)
50.34%27.54%18.46%
Return on Invested Capital (Normalized)
20.97%12.64%12.42%
Return on Assets
ALLE
CARR
ASSA B
See how this stock stacks up to its competitors with Morningstar Investor

Security & Protection Services Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Assa Abloy AB Class B
ASAZF
Gry$33.5 Bil
Assa Abloy AB ADR
ASAZY
Fhmq$33.2 Bil
SECOM Co Ltd ADR
SOMLY
Wltvkb$12.8 Bil
SECOM Co Ltd
SOMLF
Lksbfh$12.8 Bil
MSA Safety Inc
MSA
Pstf$7.0 Bil
ADT Inc
ADT
Kjpr$6.7 Bil
Securitas AB ADR
SCTBY
Fwcc$5.9 Bil
Securitas AB Class B
SCTBF
Nxnty$5.9 Bil
The Brink's Co
BCO
Fpdrmy$4.5 Bil

Sponsor Center