📊 ALLE Key Takeaways
Is Allegion plc (ALLE) a Good Investment?
Allegion demonstrates solid revenue growth of 7.8% YoY with healthy operating margins of 18.9% and excellent interest coverage of 8.1x, indicating strong operational performance and robust debt management. However, concerning returns on equity (6.6%) and assets (2.6%) suggest capital inefficiency that limits conviction, despite positive free cash flow generation of $80.3M.
Allegion shows strong fundamental quality through high operating and net margins, solid returns on capital, and robust free cash flow generation. Revenue growth remains healthy and cash conversion is strong, but flat net income and moderate leverage suggest the business is strong rather than flawless. Overall, the company appears fundamentally sound with good growth quality and disciplined financial health.
Why Buy Allegion plc Stock? ALLE Key Strengths
- Revenue growth of 7.8% YoY with net income growth of 7.7% and EPS growth of 9.1% indicating operational leverage and efficient capital allocation
- Excellent interest coverage ratio of 8.1x demonstrates strong ability to service $2.0B debt burden
- Solid operating margin of 18.9% and net margin of 13.4% with positive free cash flow generation of $80.3M and 7.8% FCF margin
- High profitability with 21.1% operating margin and 15.8% net margin
- Strong cash generation with $685.7M in free cash flow and a 16.9% FCF margin
- Healthy balance between liquidity and leverage, with 1.84x current ratio and 8.5x interest coverage
ALLE Stock Risks: Allegion plc Investment Risks
- Low return on equity of 6.6% and return on assets of 2.6% indicate significant capital inefficiency and underutilized asset base
- High financial leverage with debt-to-equity ratio of 0.97x and $2.0B long-term debt against $2.1B equity creates refinancing risk
- Modest cash position of $308.9M relative to $3.2B total liabilities limits financial flexibility and cushion
- Net income was flat year over year, which may indicate some pressure on incremental profitability
- Long-term debt of $1.98B and debt-to-equity of 0.96x reduce financial flexibility versus a lower-leverage profile
- EPS growth outpaced net income growth, suggesting per-share improvement may rely partly on capital allocation rather than pure earnings expansion
Key Metrics to Watch
- Return on equity trend and management initiatives to improve capital efficiency
- Free cash flow sustainability and capital allocation decisions (dividends, debt reduction, acquisitions)
- Debt-to-equity ratio trajectory and progress on deleveraging strategy
- Net income growth relative to revenue growth
- Free cash flow margin and debt reduction trend
Allegion plc (ALLE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Allegion plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ALLE Profit Margin, ROE & Profitability Analysis
ALLE vs Services Sector: How Allegion plc Compares
How Allegion plc compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Allegion plc Stock Overvalued? ALLE Valuation Analysis 2026
Based on fundamental analysis, Allegion plc has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Allegion plc Balance Sheet: ALLE Debt, Cash & Liquidity
ALLE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Allegion plc's revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.12 reflects profitable operations.
ALLE Revenue Growth, EPS Growth & YoY Performance
ALLE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $941.9M | N/A | $1.59 |
| Q3 2025 | $967.1M | N/A | $1.99 |
| Q2 2025 | $965.6M | N/A | $1.77 |
| Q1 2025 | $893.9M | $123.8M | $1.41 |
| Q3 2024 | $917.9M | $156.3M | $1.77 |
| Q2 2024 | $912.5M | $142.0M | $1.61 |
| Q1 2024 | $893.9M | $123.5M | $1.40 |
| Q3 2023 | $913.7M | $114.6M | $1.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Allegion plc Dividends, Buybacks & Capital Allocation
ALLE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Allegion plc (CIK: 0001579241)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALLE
What is the AI rating for ALLE?
Allegion plc (ALLE) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALLE's key strengths?
Claude: Revenue growth of 7.8% YoY with net income growth of 7.7% and EPS growth of 9.1% indicating operational leverage and efficient capital allocation. Excellent interest coverage ratio of 8.1x demonstrates strong ability to service $2.0B debt burden. ChatGPT: High profitability with 21.1% operating margin and 15.8% net margin. Strong cash generation with $685.7M in free cash flow and a 16.9% FCF margin.
What are the risks of investing in ALLE?
Claude: Low return on equity of 6.6% and return on assets of 2.6% indicate significant capital inefficiency and underutilized asset base. High financial leverage with debt-to-equity ratio of 0.97x and $2.0B long-term debt against $2.1B equity creates refinancing risk. ChatGPT: Net income was flat year over year, which may indicate some pressure on incremental profitability. Long-term debt of $1.98B and debt-to-equity of 0.96x reduce financial flexibility versus a lower-leverage profile.
What is ALLE's revenue and growth?
Allegion plc reported revenue of $1.0B.
Does ALLE pay dividends?
Allegion plc pays dividends, with $47.4M distributed to shareholders in the trailing twelve months.
Where can I find ALLE SEC filings?
Official SEC filings for Allegion plc (CIK: 0001579241) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALLE's EPS?
Allegion plc has a diluted EPS of $1.59.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ALLE a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Allegion plc has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ALLE stock overvalued or undervalued?
Valuation metrics for ALLE: ROE of 6.6% (sector avg: 16%), net margin of 13.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ALLE stock in 2026?
Our dual AI analysis gives Allegion plc a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ALLE's free cash flow?
Allegion plc's operating cash flow is $101.3M, with capital expenditures of $21.0M. FCF margin is 7.8%.
How does ALLE compare to other Services stocks?
Vs Services sector averages: Net margin 13.4% (avg: 10%), ROE 6.6% (avg: 16%), current ratio 1.91 (avg: 1.5).