Quality Investor

Allegion plc

Rank #182Hypergrowth

ALLE · NYSE · Industrials

Allegion plc (ALLE) — Rank #182 by gross profitability (GP/assets 0.34) · ROE 30.4% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001579241 · all metrics point-in-time as of the filing date.

About

Allegion plc engages in the provision of security products and solutions worldwide.

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It is operating through two segments: Allegion Americas and Allegion International. The company offers door controls, door control system, and exit devices; doors, glass and door systems, and accessories; electronic security products and access control systems, including time, attendance, and workforce productivity; and locks, locksets, portable locks, and key systems. It also provides services and software, such as inspection, maintenance, and repair services for its automatic entrance solutions; software as a service, including access control, platform integration, and workforce management solutions; and ongoing aftermarket services, and design and installation offerings. In addition, 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 based in Dublin, Ireland.

Industry
Security & Protection Services
Sector
Industrials
State
L2
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

ALLE+16.1% · +3.0% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$13.09B

P/E (annual)

20.7

P/S (annual)

3.2

P/B

6.2

P/OCF (annual)

16.7

Shareholder Yield

12.0%

Employees

13,300

Industry

Security & Protection Services

Exchange

NYSE

Signal Flags

3 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.34
Return on equity
30.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.53
Current ratio
1.93×
Net cash
-$1.67B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.7%

Growth

2/2 pass
Revenue growth
81.7%
Piotroski F-Score
7 / 9
Share dilution
-10.6%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

7.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -10.6% — per-share value needs a total required return of -3.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 14.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.0%

r = 10% (base)

7.3%

r = 12%

11.0%

Net debt / market cap: 12.6%

Base FCF: $685.7M3Y mean FCF: $297.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

21.8xCheap
21.8xmed 30.8x53.9x

P / S

Price / revenue per share

3.1xCheap
3.1xmed 3.7x4.7x

P / B

Price / book value per share

10.6xCheap
10.6xmed 18.2x324.2x

P / GP

Price / gross profit per share

7.6xCheap
7.6xmed 8.7x11.0x

P / FCF

Price / free cash flow per share

25.3xFair
23.0xmed 26.4x37.4x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.34

Primary signal (Novy-Marx).

41st pctl of 98 SIC 73 peers

Return on equity

30.4%

Gross margin

45.2%

26th pctl of 97 SIC 73 peers

Revenue growth (YoY)

81.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2017202020212022
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

7.5%

Revenue CAGR (5Y)

8.4%

Earnings CAGR (3Y)

12.0%

FCF CAGR (3Y)

20.1%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.53

9th pctl of 87 SIC 73 peers (best = lowest)

Current ratio

1.93×

55th pctl of 97 SIC 73 peers

Quick ratio

1.18×

Net cash

-$1.67B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$685.70M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.07

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.7%

Stock-based comp intensity.

Dividend safety

Composite score

4.5 / 5

Strong
Payout ratio
27.2%5/5 Strong
FCF coverage
3.91×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 1.53 · IC 8.51×3/5 Good

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20152022
Capital Return
Op. Leverage
Hypergrowth