Allegion Stock Analysis, Valuation (NYSE:ALLE)

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$79.22 $0.55 (0.7%) ALLE stock closing price May 23, 2018 (Closing)
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Allegion
Updated on : May 23, 2018
previous close
ALLE 79.2 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
protection-safety equipment and service
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.7%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.51B
Debt/Equity Ratio:
 3.27
Compared to the industry
Cash Flow
Operating cash flow:
-$10.1M
Net Income:
$72.2M
Dividend Yield
ALLE dividend yield:
0.87%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
High Debt Burden
Cash Flow
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ALLE PS :
3
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.8%
Return on Equity:
83.3%
Free Cash Flow Margin:
-3.1%
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Allegion Stock Analysis

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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 3.2/5

Amigobulls ALLE stock analysis relies on business fundamentals such as Allegion revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 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?

  • The TTM operating margin was good at 19.7% for Allegion.
  • Net margins came in at average 11.2% for Allegion over the last twelve months.
  • The Allegion stock currently trades at a price to earnings ratio of 19.6. We rate this as a positive, compared to the industry average of 20.9.
  • Allegion has an attractive ROIC (Return on Invested Capital) of 19.8%
  • The LTM ROE of 83.3% for Allegion is attractive.

Should you sell ALLE stock?

  • Allegion has a debt/equity ratio of  3.27, which is worse than the average in the Industrial Products sector.
  • The company is trading at a price to sales multiple of 3, which is higher in comparison to the protection-safety equipment and service industry average of 1.5, making ALLE stock expensive.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -3.1%.

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.