Allegion Stock Analysis, Valuation (NYSE:ALLE)

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$86.96 $0.26 (0.3%) ALLE stock closing price Aug 20, 2018 (Closing)

View the Allegion stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for ALLE stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Allegion PLC Stock Rating 4/5

Amigobulls ALLE stock analysis relies on business fundamentals such as Allegion revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Allegion valuation forms a crucial part of our stock analysis. Allegion stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ALLE stock?

  • Revenue growth has been tremendous with a compounded annual growth of 10.5 over the last 5 years.
  • Allegion had a healthy average operating margin of 19.5 over the last 4 quarters.
  • Net margins came in at average 11.2% for Allegion over the last twelve months.
  • Allegion has an attractive ROIC (Return on Invested Capital) of 19.5
  • Allegion has a good Return On Equity (ROE) of 70.8.
  • Allegion has a healthy FCF (Free Cash Flow) margin of 16.5.

Should you sell ALLE stock?

  • Allegion is debt laden and has a high debt/equity ratio of 2.87.
  • ALLE stock is trading at a PS multiple of 3.2, which is a negative when compared to the Industrial Products sector average multiple of 1.4.

Comments on this video and Allegion stock

Investors can use Amigobulls Allegion stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of ALLE stock and helps investors in making good buy and sell decision.

Allegion revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.