📊 ALLE Key Takeaways
Is Allegion plc (ALLE) a Good Investment?
Allegion demonstrates strong fundamental operational performance with robust profitability (21.1% operating margin, 15.8% net margin) and exceptional returns on equity (31.1%) despite modest net income growth. The company generates substantial free cash flow ($685.7M) with healthy liquidity (1.84x current ratio) and manageable leverage (0.96x debt/equity), supporting its capital allocation and debt servicing capabilities.
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
- Exceptional ROE of 31.1% indicates highly efficient capital deployment and strong shareholder value creation
- Robust free cash flow generation of $685.7M with 16.9% FCF margin demonstrates cash conversion quality beyond reported earnings
- Strong revenue growth of 7.8% YoY coupled with improved EPS growth of 9.1% YoY shows operational leverage and margin expansion
- Solid balance sheet with current ratio of 1.84x and interest coverage of 8.5x provides financial flexibility
- 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
- Net income growth stalled at 0.0% YoY despite 7.8% revenue growth, suggesting margin pressures or operating inefficiencies that require investigation
- High leverage ratio with $2.0B long-term debt against only $2.1B equity creates vulnerability if operational performance deteriorates
- Significant insider trading activity (41 Form 4 filings in 90 days) may signal uncertainty about company direction or valuation
- SIC classification in security/guard services suggests exposure to labor-intensive operations with potential wage inflation risks
- 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
- Operating margin sustainability as revenue grows—need to confirm whether 21.1% can be maintained or improved
- Free cash flow consistency and conversion ratio relative to net income to assess earnings quality
- Debt levels and leverage ratio trends given elevated long-term debt relative to equity base
- Net income growth acceleration relative to revenue growth to resolve the disconnect in near-term results
- 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 appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $773.1M | $115.1M | $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 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALLE's key strengths?
Claude: Exceptional ROE of 31.1% indicates highly efficient capital deployment and strong shareholder value creation. Robust free cash flow generation of $685.7M with 16.9% FCF margin demonstrates cash conversion quality beyond reported earnings. 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: Net income growth stalled at 0.0% YoY despite 7.8% revenue growth, suggesting margin pressures or operating inefficiencies that require investigation. High leverage ratio with $2.0B long-term debt against only $2.1B equity creates vulnerability if operational performance deteriorates. 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 $4.1B.
Does ALLE pay dividends?
Allegion plc pays dividends, with $175.3M 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 $7.44.
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 April 2026, Allegion plc has a BUY rating with 80% 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 31.1% (sector avg: 16%), net margin of 15.8% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
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 $783.8M, with capital expenditures of $98.1M. FCF margin is 16.9%.
How does ALLE compare to other Services stocks?
Vs Services sector averages: Net margin 15.8% (avg: 10%), ROE 31.1% (avg: 16%), current ratio 1.84 (avg: 1.5).
Why is ALLE's return on equity (ROE) so high?
Allegion plc has a return on equity of 31.1%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 15.8% net margin.