Fundamental analysis: Allegion plc (ALLE)

Awarener score: 6.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Very good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been slightly shrinking. It's been below average when measured against peer companies.
Allegion plc business trend stability is very good. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 7.7

ALLE profit margins -on goods and services sold- are usually sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be excellent. It's top tier when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 3.4

Allegion plc profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
Earnings per share have grown at a very low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 8.0

ALLE managed to pay little to no income taxes on profits made in the past years. It's been well ranked against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

Allegion plc usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.7

ALLE usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands top tier when measured against rival firms.
The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is almost average when measured against industry peers.
In the past twelve months it paid somewhat low dividends, considering the current stock price. It came somewhat worse than competitors.
Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in a weak position compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks somewhat better than comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.1

Allegion plc intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be lacking compared to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains mediocre against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on a month and a half credit. It still ranks encouraging in relation to peers.
Normally has approximately three months of sales worth in inventory. It comes up as close to average when compared to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be slightly worse than peers.
On average pays suppliers two months after the purchase. It ranks encouraging in relation to industry peers.
The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's close to average when compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands somewhat better than rival firms.
Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 5.3

Allegion plc looks somewhat expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly better than similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up rather normal in relation to peer ventures.
The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks below average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be similar to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.5

Company at a glance: Allegion plc (ALLE)

Sector, industry: Industrials, Security & Protection Services

Market Cap: 9.54 billions

Revenues TTM: 3.47 billions

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door closers, controls, 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 and door systems; and other accessories. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, 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, on-line and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.