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Allegion
(NYSE:ALLE)
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Rating:78Outperform
Price Target:
$201.00
▲(25.34% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong financial performance (steady growth, solid margins, and robust free cash flow) and a positive earnings update with raised guidance and continued Americas strength. This is tempered by overbought technical conditions that increase near-term downside risk and a valuation that appears fair rather than clearly discounted, alongside ongoing International and inflation/margin headwinds.
Positive Factors
Durable Americas growth
Broad-based Americas growth across commercial and residential categories indicates durable demand, while combined price and volume gains support revenue quality. Continued strength in non-residential markets and specification activity can sustain expansion and reinforce Allegion’s channel and brand position.
Negative Factors
Persistent International weakness
Prolonged weakness in Western Europe, particularly Germany, creates a durable regional drag on consolidated growth and operating income. Lower volumes, unfavorable mix, and persistent inflation may continue to offset Americas momentum, limiting the company’s ability to convert global demand into steady expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Americas growth
Broad-based Americas growth across commercial and residential categories indicates durable demand, while combined price and volume gains support revenue quality. Continued strength in non-residential markets and specification activity can sustain expansion and reinforce Allegion’s channel and brand position.
Read all positive factors
Allegion Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks sales down across Allegion’s different business lines or product groups, showing which parts of the company drive growth and where management focuses investment. Segment-level revenue reveals diversification or concentration risk and helps identify which products or services are expanding, shrinking, or key to future profitability.
Breaks sales down across Allegion’s different business lines or product groups, showing which parts of the company drive growth and where management focuses investment. Segment-level revenue reveals diversification or concentration risk and helps identify which products or services are expanding, shrinking, or key to future profitability.
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The Fly
The FlyAllegion (ALLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.09B
Dividend Yield1.21%
Average Volume (3M)1.14M
Price to Earnings (P/E)22.2
Beta (1Y)0.49
Revenue Growth10.33%
EPS Growth8.70%
CountryUS
Employees13,300
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)8.07
Shares Outstanding84,321,434
10 Day Avg. Volume1,223,179
30 Day Avg. Volume1,140,355
Financial Highlights & Ratios
PEG Ratio2.28
Price to Book (P/B)6.61
Price to Sales (P/S)3.36
P/FCF Ratio19.95
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit7.55
Enterprise Value/Ebitda13.69
Forecast
1Y Price Target
$187.86Price Target Upside17.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)9.04
Revenue Forecast (FY)$4.45B
Allegion Business Overview & Revenue Model
Company Description
Allegion plc engages in the provision of security products and solutions worldwide. It is operating through two segments: Allegion Americas and Allegion International. The company offers door controls, door control system, and exit devices; doors,...
How the Company Makes Money
Allegion makes money primarily by selling security and access products and related solutions to customers in commercial and residential markets. Its core revenue stream is product sales of mechanical security hardware (e.g., locks, door hardware, ...
Allegion Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, led by strong Americas and Non-Residential performance, broad-based organic growth, raised full-year revenue and EPS guidance, expanding quarterly margins, strong cash flow, and continued investment in connected products, AI and acquisitions. The main challenges were weak International markets, flat Residential volume, persistent inflation requiring ongoing pricing, and limited full-year margin expansion.Positive Updates
Strong Third-Quarter Revenue, Margin and EPS Growth
Third-quarter revenue was approximately $1.2 billion, up 9.6% year over year, with organic revenue increasing 7.2%, driven by strength in the Americas and by both price realization and volume growth. Adjusted operating margin was 24.7%, up 60 basis points, supported by $15.6 million of favorable price and productivity net of inflation and investment, a 50-basis-point margin tailwind, and volume leverage. Adjusted EPS was $2.60, up $0.30 or 13% versus the prior year.
Negative Updates
International Organic Revenue and Operating Income Declined
International revenue was $230.2 million, up 1.8% on a reported basis but down slightly organically, as favorable pricing was offset by lower volumes. The volume decline resulted from continued weakness in Western Europe, while currency was also a headwind. International adjusted operating income decreased 1.2% to $31.9 million, and adjusted operating margin declined 40 basis points due to lower volume and unfavorable mix.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue, Margin and EPS Growth
Third-quarter revenue was approximately $1.2 billion, up 9.6% year over year, with organic revenue increasing 7.2%, driven by strength in the Americas and by both price realization and volume growth. Adjusted operating margin was 24.7%, up 60 basis points, supported by $15.6 million of favorable price and productivity net of inflation and investment, a 50-basis-point margin tailwind, and volume leverage. Adjusted EPS was $2.60, up $0.30 or 13% versus the prior year.
Read all positive updates
Company Guidance
For full year 2026, Allegion raised its reported revenue outlook to 9.5% to 10.5%, organic revenue growth outlook to 5% to 6%, and adjusted earnings per share outlook to $9.05 to $9.10, with Americas organic growth at 7% to 8%, International organic growth down low single digits, low double-digit EPS growth, and an assumed share count of 85.6 million; ACF conversion is expected to be in the range of 85% to 95% of adjusted net income, and full-year margins are expected to be flat to slightly up. For 2027, demand in major end markets is expected to be similar to current year with growth led by strength in the Americas; Residential growth is expected to be driven primarily by price, International markets are expected to remain soft, and Allegion expects to remain in an inflationary environment, take pricing to protect operating profit dollars, deliver Americas operating leverage consistent with its long-term framework for incremental margins, and see margin expansion. Carryover pricing will continue into next year, with a pricing increase anticipated in early February, while the approximately $90 million Overly acquisition is expected to add approximately 1 point to Americas revenues on an annualized basis.Allegion Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.39B | 4.07B | 3.77B | 3.65B | 3.27B | 2.87B |
| Gross Profit | 1.98B | 1.84B | 1.67B | 1.58B | 1.32B | 1.20B |
| EBITDA | 1.09B | 1.00B | 916.90M | 821.90M | 688.30M | 657.30M |
| Net Income | 691.10M | 643.80M | 597.50M | 540.40M | 458.00M | 483.00M |
Balance Sheet | ||||||
| Total Assets | 5.47B | 5.22B | 4.49B | 4.31B | 3.99B | 3.05B |
| Cash, Cash Equivalents and Short-Term Investments | 388.10M | 356.20M | 503.80M | 468.10M | 288.00M | 397.90M |
| Total Debt | 2.03B | 2.28B | 2.15B | 2.02B | 2.09B | 1.44B |
| Total Liabilities | 3.29B | 3.16B | 2.99B | 2.99B | 3.05B | 2.29B |
| Stockholders Equity | 2.17B | 2.07B | 1.50B | 1.32B | 941.80M | 759.10M |
Cash Flow | ||||||
| Free Cash Flow | 739.02M | 685.70M | 582.90M | 516.40M | 395.50M | 443.20M |
| Operating Cash Flow | 843.60M | 783.80M | 675.00M | 600.60M | 459.50M | 488.60M |
| Investing Cash Flow | -205.96M | -685.50M | -228.40M | -129.10M | -994.10M | -31.60M |
| Financing Cash Flow | -542.55M | -266.70M | -394.50M | -298.70M | 437.00M | -529.30M |
Allegion Technical Analysis
Positive
160.37
Price Trends
156.48
Positive
150.25
Positive
149.16
Positive
Market Momentum
4.81
Negative
78.27
Negative
95.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLE, the sentiment is Positive. The current price of 160.37 is above the 20-day moving average (MA) of 157.41, above the 50-day MA of 156.48, and above the 200-day MA of 149.16, indicating a bullish trend. The MACD of 4.81 indicates Negative momentum. The RSI at 78.27 is Negative, neither overbought nor oversold. The STOCH value of 95.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLE.
Allegion Risk Analysis
Allegion disclosed 37 risk factors in its most recent earnings report. Allegion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allegion Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.09B | 22.18 | 32.68% | 1.21% | 10.33% | 8.70% | |
76 Outperform | $1.39B | 32.08 | 23.59% | 1.57% | 11.39% | 0.75% | |
72 Outperform | $7.03B | 22.61 | 23.15% | 1.17% | 6.48% | 14.55% | |
72 Outperform | $5.04B | 8.96 | 16.83% | 3.19% | 2.10% | 6.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $4.58B | 25.52 | 64.68% | 0.92% | 8.12% | 16.12% | |
54 Neutral | $2.71B | 7.38 | 14.70% | ― | 3.42% | ― |
* Industrials Sector Average
ALLE
Allegion
178.98
10.51
6.24%
BCO
Brink's Company
111.27
-3.47
-3.02%
MSA
MSA Safety
182.26
17.45
10.59%
NSSC
Napco Security Technologies
38.82
-4.59
-10.58%
ADT
Adt
6.90
-1.57
-18.54%
REZI
Resideo Technologies
17.86
-12.74
-41.63%
Allegion Corporate Events
Business Operations and StrategyExecutive/Board Changes
Allegion Announces Leadership Transition in International Operations
Positive
Sep 8, 2026
On Sept. 8, 2026, Dublin-based Allegion announced that longtime executive Tim Eckersley will retire as president, International, and senior vice president, Allegion, effective Dec. 31, 2026. Eckersley, a founding member of the executive leadership...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.