One-glance verdict
Within fair range
$196.30 our estimate vs market $156.54
Wall Street consensus: $178.00 (-9.3% lower than our fair-value estimate)
20% below our estimate
Fundamentals snapshot
Allegion plc
ALLE · NYQ · Industrials · Security & Protection Services
Current price
$156.54
52-week range
$125.00 - $183.11
Market cap
$13.31B
Balance sheet
Watch
8.51x Adequate
Net debt $1.90B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.4% last year.
- Reward Returns 33.7% on equity, ahead of 83% of its peers.
- Risk Stock trades 0.6% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 0.3%).
What this company does
Allegion plc
Allegion is a security company that sells locks, door hardware, and electronic access systems for buildings, with well-known brands like Schlage. It earns money primarily from selling these physical products to commercial customers like schools and hospitals in the Americas, but is also growing its service business which provides more predictable recurring revenue (money that comes in consistently, like a subscription). This focus on both one-time product sales and ongoing services for essential security can create a stable business.
How the company got here
Allegion is a relatively new name for a company with a long history. It was officially formed in 2013 when the industrial company Ingersoll Rand decided to separate its security-related businesses into a new, standalone public company. This move allowed Allegion to focus entirely on security products. However, many of its well-known brands have been around for much longer, with some dating back over a century, like Schlage, known for locks, and Von Duprin, which invented the panic bar for exit doors. Since becoming independent, Allegion has made several acquisitions (buying other companies) to expand its offerings, especially in electronic and smart lock technology.
What it actually does
Allegion makes products that keep people and property safe, mostly focused on doors and entryways. You might recognize their Schlage brand of locks and deadbolts on houses and apartments. They also make heavy-duty security products for commercial buildings like schools, hospitals, and offices. This includes everything from door closers and exit devices to advanced electronic access control systems that use key cards or smartphones instead of traditional keys.
Allegion Americas
This is Allegion's largest business segment, covering the United States, Canada, and Latin America, and it brings in the majority of the company's revenue. It sells a wide variety of security products, from the mechanical locks and door hardware you'd find at a home improvement store to complex electronic security systems for large buildings. The customers in this segment are diverse, including homeowners, construction companies, and institutions like schools and hospitals.
Allegion International
This segment handles the company's business outside of the Americas, primarily in Europe and the Asia-Pacific region. It sells a similar range of security products as the Americas segment, including well-known European brands like CISA and Interflex. In addition to locks and door hardware, this segment also provides solutions for workforce management, such as time and attendance systems. While smaller than the Americas business, it is an important part of the company's global presence.
What management is betting on now
Allegion is focused on moving beyond traditional mechanical locks and into the world of electronic and connected security. This means investing in smart locks for homes that can be controlled with a phone, and sophisticated access control systems for businesses. The company is also growing through strategic acquisitions (buying smaller companies) that add new technologies or expand their reach, such as the purchase of Stanley Access Technologies to get into automatic doors. Their goal is to provide 'seamless access,' combining hardware, software, and services to make security smarter and more convenient.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$212.00M
FY2024 Q4
$194.90M
FY2025 Q1
$83.40M
FY2025 Q2
$192.00M
FY2025 Q3
$209.80M
FY2025 Q4
$200.50M
FY2026 Q1
$80.30M
FY2026 Q2
$180.50M
Revenue
$1.15B
Net income
—
Diluted EPS
2.15
Operating cash flow
$198.40M
Free cash flow
$180.50M
Fetching…
Sources
Revenue
$1.03B
Net income
—
Diluted EPS
1.59
Operating cash flow
$101.30M
Free cash flow
$80.30M
Fetching…
Sources
Revenue
$1.03B
Net income
$495.60M
Diluted EPS
1.70
Operating cash flow
$240.10M
Free cash flow
$200.50M
Fetching…
Sources
Revenue
$1.07B
Net income
—
Diluted EPS
2.18
Operating cash flow
$229.50M
Free cash flow
$209.80M
Fetching…
Sources
Revenue
$1.02B
Net income
—
Diluted EPS
1.85
Operating cash flow
$209.70M
Free cash flow
$192.00M
Fetching…
Sources
Revenue
$941.90M
Net income
$148.20M
Diluted EPS
1.71
Operating cash flow
$104.50M
Free cash flow
$83.40M
Fetching…
Sources
Revenue
$945.60M
Net income
$144.10M
Diluted EPS
1.65
Operating cash flow
$219.00M
Free cash flow
$194.90M
Fetching…
Sources
Revenue
$967.10M
Net income
$174.20M
Diluted EPS
1.99
Operating cash flow
$231.90M
Free cash flow
$212.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $196.30 vs current price $156.54
Wall Street consensus is the average analyst price target: $178.00 (-9.3% lower than our fair-value estimate).
Our most-likely fair value is $196.30 a share — about 25.4% away from today's price of $156.54, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.9B. Interest coverage 8.5x.
Net debt
$1.90B
Interest coverage
8.51x
Allegion plc's profit covers its interest bill about 8.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
ALLE
BASELINE
Allegion plc
Total debt $2.22B Interest coverage 8.51x This is the baseline the peer rows are being compared against.
Total debt — Interest coverage 7.12x -16% vs ALLE Carries about 1.2x less debt cushion than ALLE.
Total debt $5.21B Interest coverage 2.43x -71% vs ALLE Carries about 3.5x less debt cushion than ALLE.
Total debt $2.80B Interest coverage 5.39x -37% vs ALLE Carries about 1.6x less debt cushion than ALLE.
Total debt $9.48B Interest coverage 12.46x +46% vs ALLE Carries about 1.5x more debt cushion than ALLE.
Total debt $12.39B Interest coverage 4.16x -51% vs ALLE Carries about 2.0x less debt cushion than ALLE.
What you should know
The case for and against ALLE
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.4% last year.
-
Returns 33.7% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 0.6% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.52x
Forward P/E
15.99x
P/B
6.28x
P/S
3.10x
EV/EBITDA
14.50x
PEG ratio
1.98x
Profitability
How much profit each dollar creates
Gross margin
44.8%
Operating margin
22.1%
Net margin
15.4%
ROE
33.7%
ROA
11.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
1.93x
Quick ratio
1.13x
Total debt
$2.22B
Total cash
$320.60M
Growth
How the business has been compounding
Revenue TTM
$4.29B
Revenue 5Y CAGR
9.1%
EPS TTM
7.63
EPS 5Y CAGR
12.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$769.30M
Free CF TTM
$685.70M
FCF margin
16.0%
Dividend
Shareholder payout
Yield
1.4%
Payout ratio
27.8%
Last ex-div date
2026-09-15