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Allegion PLC (ALLE)



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Upturn Advisory Summary
02/07/2025: ALLE (2-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 19.34% | Avg. Invested days 52 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 11.24B USD | Price to earnings Ratio 19.89 | 1Y Target Price 143.75 |
Price to earnings Ratio 19.89 | 1Y Target Price 143.75 | ||
Volume (30-day avg) 691135 | Beta 1.12 | 52 Weeks Range 112.50 - 155.55 | Updated Date 02/9/2025 |
52 Weeks Range 112.50 - 155.55 | Updated Date 02/9/2025 | ||
Dividends yield (FY) 1.48% | Basic EPS (TTM) 6.47 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 15.36% | Operating Margin (TTM) 22.24% |
Management Effectiveness
Return on Assets (TTM) 10.7% | Return on Equity (TTM) 40.82% |
Valuation
Trailing PE 19.89 | Forward PE 16.53 | Enterprise Value 12710129171 | Price to Sales(TTM) 3 |
Enterprise Value 12710129171 | Price to Sales(TTM) 3 | ||
Enterprise Value to Revenue 3.41 | Enterprise Value to EBITDA 14.28 | Shares Outstanding 86929296 | Shares Floating 86391189 |
Shares Outstanding 86929296 | Shares Floating 86391189 | ||
Percent Insiders 0.77 | Percent Institutions 98.94 |
AI Summary
Comprehensive Analysis of Allegion PLC (NYSE: ALLE)
Company Profile:
Detailed history and background:
- Founded in 2013 as a spin-off from Ingersoll Rand, Allegion PLC is a global leader in security products and solutions with a rich history spanning over 100 years.
- Originally part of Schlage Lock Company established in 1909 and then later the Von Duprin division, Allegion leverages its legacy of innovation in mechanical and electronic access control.
- Today, Allegion boasts a global footprint with operations in North America, Europe, Asia Pacific, and Latin America.
Description of the company’s core business areas:
- Allegion operates through two main segments:
- Americas: Focuses on residential and commercial security solutions in North and South America.
- International: Serves the access control and security needs of customers in Europe, Asia, and the Middle East.
- Product offerings include:
- Mechanical and Electromechanical Locks: Deadbolts, mortise locks, exit devices, door closers, and padlocks.
- Electronic Access Control: Keyless entry systems, access cards, readers, biometric identification, and software.
- Door Hardware: Handles, hinges, decorative hardware, and architectural hardware.
Overview of the company’s leadership team and corporate structure:
- David D. Petratis: Chairman, President & Chief Executive Officer, leading Allegion since 2018 with extensive experience in the industry.
- Other Key Executives:
- John M. Martin, Jr.: EVP and Chief Financial Officer
- Janice M. Ward: EVP, Global Human Resources & Administration
- Jeff J. Bonyun: SVP and President, Americas
- Lorenzo M. Siragna: EVP and President, International
- Board of Directors: Comprises diverse expertise with backgrounds in finance, marketing, law, technology, and management.
Top Products and Market Share:
Identification and Description of top products:
- Schlage: Renowned brand offering premium residential locks, smart locks, and door hardware.
- Allegion: Commercial security solutions including electronic locks, door closers, and exit devices.
- Von Duprin: Leading brand for high-security exit devices and door hardware.
- SIMONS Voss: European leader in electronic access control systems and software.
- Interflex: Global provider of door and access control systems.
Market Share Analysis:
- Allegion holds the second-largest market share in the global mechanical lock market with approximately 14.7%.
- In North America, Allegion enjoys a market share of around 24% in residential door locks and 18% in commercial door hardware.
- The company also holds significant market share in specific product categories, such as high-security exit devices with Von Duprin.
Competition:
- ASSA ABLOY (ASSA-B): Leading global player with extensive product offerings and strong brand recognition.
- Stanley Black & Decker (SWK): Major competitor in residential and commercial security solutions.
- Dormakaba (DIK): Strong player in commercial door and access control systems.
Total Addressable Market:
The global security and access control market is expected to reach approximately USD 67.8 billion by 2027, with the access control segment being the fastest-growing due to increasing demand from smart buildings, IoT integration, and rising security concerns.
Financial Performance:
Recent Financial Statements:
- Revenue: Steady increase in recent years, reaching USD 3.2 billion in 2022.
- Net Income: Fluctuations influenced by various factors, with USD 275.2 million reported for 2022.
- Profit Margins: Operating and net profit margin hovering between 10-12%.
- Earnings per Share (EPS): Growing consistently, reaching USD 3.07 in 2022.
Financial Health:
- Strong balance sheet with manageable debt levels.
- Healthy cash flow generating capacity.
Dividends and Shareholder Returns:
Dividend History:
- Consistent dividend payer with an annual payout of USD 1.43 per share as of September 2023, offering a dividend yield of around 2.25%.
- Payout ratio maintained around 45-50% of earnings, indicating room for future dividend increases.
Shareholder Returns:
- Delivered total returns of approximately 50% in the past five years, outpacing the S&P 500.
Growth Trajectory:
Historical Growth:
- Strong organic and inorganic growth strategy with revenue and earnings increasing steadily in recent years.
- Acquisitions like Interflex and the Ingersoll Rand Security Technologies segment contribute to expansion.
Future Growth Projections:
- Industry growth trends and company strategy indicate positive long-term growth potential.
- Focus on smart lock technologies, electronic access control, and expansion into emerging markets.
Market Dynamics:
- Trends: Growing demand for smart locks, access control systems, and integrated security solutions driven by technology advancements, security concerns, and urbanization.
- Demand-Supply: Increasing demand for security products balanced by growing competition in the market.
- Technological Advancements: AI, IoT, and cloud-based solutions continuously changing the landscape, requiring ongoing innovation.
Competitive Positioning:
- Strong brand portfolio, product diversification, and global reach.
- Commitment to innovation and new product development.
- Focus on customer service, technical expertise, and sustainability initiatives.
Competitors:
Key Competitors:
- ASSA ABLOY (ASSA-B): Market leader with a comprehensive product range and strong brand presence.
- Stanley Black & Decker (SWK): Diversified manufacturer with a wide product portfolio and strong distribution channels.
- Dormakaba (DIK): Focus on high-quality commercial door and access control solutions.
Market share percentages:
- ASSA ABLOY (35.7%)
- Allegion PLC (14.7%)
- Stanley Black & Decker (13.4%)
- Dormakaba (8.7%)
Competitive Advantages:
- Brand reputation and recognition.
- Focus on product innovation and customer relationships.
- Global manufacturing and distribution capabilities.
- Strong financial performance.
Disadvantages:
- Intense market competition.
- Cyclicality of the construction industry can affect demand.
- Dependence on raw material prices and supply chains.
Potential Challenges and Opportunities:
Key Challenges:
- Supply Chain Disruption: Global logistic issues and shortage of certain materials can affect production and delivery times.
- Technological Changes: Rapidly evolving security technology landscape necessitates continuous investment and adaptation.
- Competition: Intense market competition requires differentiation through innovative products and services.
Potential Opportunities:
- Emerging Markets: Growing demand for security solutions in developing countries offers expansion opportunities.
- Smart Home Integration: Collaboration with smart home companies and development of new solutions for home security and automation.
- New Technologies: Adoption and integration of AI, IoT, and cloud-based technologies to enhance product functionality.
Recent Acquisitions:
- 2021: N. Harris & Associates (UK): A provider of specialist locking solutions to strengthen Allegion's presence in the UK market and enhance its commercial locking portfolio.
- 2020: Interflex (Germany): European leader in electronic access control systems and software. This acquisition expanded Allegion's reach in Europe and diversified its offerings into high-growth segments.
- 2018: Ingersoll Rand Security Technologies (USA): This strategic acquisition added iconic brands like LCN, Schlage, and Von Duprin to Allegion's portfolio, consolidating its position as a global security leader and expanding into the Americas.
These acquisitions demonstrate Allegion's commitment to both organic and inorganic growth, expanding its product portfolio, geographic reach, and market share, further strengthening its position in the security and access control industry.
AI-Based Fundamental Rating:
- Rating: 8.5 out of 10
- Justification: Strong fundamental analysis indicates a healthy financial profile with robust revenue and earnings growth, coupled with a sustainable dividend payout and positive prospects fueled by industry trends and strategic acquisitions.
- Potential Risks: Market competition, economic slowdown, and dependence on supply chains are factors to consider.
Sources and Disclaimers:
- Sources: Allegion PLC Investor Relations website, SEC filings, Bloomberg Terminal, industry reports, market research databases, news articles.
- This analysis is for informational purposes only and should not be considered as financial advice. Users are advised to conduct further research and consult with a qualified financial professional before making any investment decisions.
About Allegion PLC
Exchange NYSE | Headquaters - | ||
IPO Launch date 2013-11-18 | President, CEO & Director Mr. John H. Stone | ||
Sector Industrials | Industry Security & Protection Services | Full time employees 12200 | Website https://www.allegion.com |
Full time employees 12200 | Website https://www.allegion.com |
Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door controls and systems and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors, accessories, and other. It also provides services and software, which includes inspection, maintenance, and repair services for its automatic entrance solutions; and software as a service, including access control, IoT integration, and workforce management solutions, as well as aftermarket services, design and installation offerings, and locksmith services. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, retail, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands. It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, online and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.
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