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Allegion
(NYSE:ALLE)
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Rating:75Outperform
Price Target:
$177.00
▲(10.37% Upside)
Action:Reiterated
Date:09/09/26
ALLE scores well primarily on financial quality (strong margins and cash conversion) and an earnings-call-driven outlook upgrade (raised 2026 revenue and EPS guidance). The score is tempered by mixed near-term technicals (below the 20-day average with neutral momentum readings) and a valuation that appears fair rather than discounted (P/E ~20.5; ~1.35% yield).
Positive Factors
Strong profitability and cash conversion
High gross and operating margins indicate meaningful earnings power in Allegion’s security-products model, while strong free-cash-flow conversion shows that reported profits are broadly translating into cash. This supports reinvestment, dividends, buybacks, and resilience across the next several quarters.
Negative Factors
Meaningful absolute debt exposure
Leverage has improved substantially from 2022, but the remaining debt load is still material. Interest-rate and refinancing sensitivity could reduce flexibility if building activity weakens, while debt service may compete with acquisitions, investment, and shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash conversion
High gross and operating margins indicate meaningful earnings power in Allegion’s security-products model, while strong free-cash-flow conversion shows that reported profits are broadly translating into cash. This supports reinvestment, dividends, buybacks, and resilience across the next several quarters.
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.
Data provided by:
The Fly
The FlyAllegion (ALLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.36B
Dividend Yield1.35%
Average Volume (3M)1.35M
Price to Earnings (P/E)20.5
Beta (1Y)0.57
Revenue Growth10.63%
EPS Growth5.92%
CountryUS
Employees13,300
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)7.66
Shares Outstanding85,036,790
10 Day Avg. Volume1,715,134
30 Day Avg. Volume1,347,210
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$168.50Price Target Upside5.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)8.95
Revenue Forecast (FY)$4.41B
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 primarily makes money by selling security and access-related products and solutions to building and security channels. Its largest revenue stream is product sales in the Americas segment, driven by mechanical door hardware (e.g., locksets...
Allegion Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong quarter-to-date financial performance driven by Americas strength: double-digit reported revenue growth, mid-to-high single-digit organic growth, EPS growth of +17.6%, margin expansion and active capital returns (share buybacks and dividends). Management raised full-year revenue and EPS guidance and highlighted secular momentum in electronics (notably higher education and data centers). Offsetting factors include weaker international end markets (notably Germany) leading to an International organic decline and margin headwinds, residual impacts from an earlier ERP implementation, and a modest decline in year-to-date cash flow with higher working capital. On balance, the positive operational and financial developments and upwardly revised outlook outweigh the international and working-capital challenges.Positive Updates
Strong Revenue and Organic Growth
Q2 revenue ~ $1.2B, up 12.7% year-over-year; enterprise organic revenue +6.9% driven by Americas (price + volume).
Negative Updates
International Organic Revenue Decline and Germany Weakness
International segment reported revenue +16.2% (reported) but organic revenue declined -1.2% in Q2 due to weaker demand in several European markets, notably Germany; management trimmed International full-year outlook to a low single-digit organic decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and Organic Growth
Q2 revenue ~ $1.2B, up 12.7% year-over-year; enterprise organic revenue +6.9% driven by Americas (price + volume).
Read all positive updates
Company Guidance
Allegion raised its 2026 outlook, now forecasting reported revenue growth of 7.5%–8.5% and organic revenue growth of 3.5%–4.5%, and increasing adjusted EPS guidance to $8.85–$9.00 (which management says equates to high‑single‑digit to low‑double‑digit EPS growth); the outlook assumes a share count of 85.9 million, does not include additional share repurchases, potential IEEPA refunds or future capital deployment, and reflects a modest reduction to expected M&A contribution and FX truing-up. Regionally, the company expects Americas organic growth at the higher end of mid‑single digits with Americas margin expansion in H2, while International is modeled as a low‑single‑digit organic decline with sequential margin recovery as ERP impacts are remediated; management expects available cash flow conversion of ~85%–95% of adjusted net income and reported net debt/adjusted EBITDA of ~1.6x.Allegion Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.29B | 4.07B | 3.77B | 3.65B | 3.27B | 2.87B |
| Gross Profit | 1.92B | 1.84B | 1.67B | 1.58B | 1.32B | 1.20B |
| EBITDA | 996.30M | 999.10M | 916.90M | 821.90M | 688.30M | 657.30M |
| Net Income | 658.60M | 643.80M | 597.50M | 540.40M | 458.00M | 483.00M |
Balance Sheet | ||||||
| Total Assets | 5.36B | 5.22B | 4.49B | 4.31B | 3.99B | 3.05B |
| Cash, Cash Equivalents and Short-Term Investments | 320.60M | 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 | 3.24B | 3.16B | 2.99B | 2.99B | 3.05B | 2.29B |
| Stockholders Equity | 2.12B | 2.07B | 1.50B | 1.32B | 941.80M | 759.10M |
Cash Flow | ||||||
| Free Cash Flow | 681.92M | 685.70M | 582.90M | 516.40M | 395.50M | 443.20M |
| Operating Cash Flow | 781.69M | 783.80M | 675.00M | 600.60M | 459.50M | 488.60M |
| Investing Cash Flow | -734.34M | -685.50M | -228.40M | -129.10M | -994.10M | -31.60M |
| Financing Cash Flow | -389.92M | -266.70M | -394.50M | -298.70M | 437.00M | -529.30M |
Allegion Technical Analysis
Positive
160.37
Price Trends
152.71
Positive
143.25
Positive
150.36
Positive
Market Momentum
0.11
Positive
49.29
Neutral
34.18
Neutral
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 below the 20-day moving average (MA) of 160.77, above the 50-day MA of 152.71, and above the 200-day MA of 150.36, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 34.18 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.32B | 30.59 | 23.59% | 1.57% | 11.39% | 0.75% | |
75 Outperform | $13.36B | 20.51 | 31.99% | 1.35% | 10.63% | 5.92% | |
72 Outperform | $7.28B | 23.41 | 23.15% | 1.13% | 6.48% | 14.55% | |
72 Outperform | $5.45B | 9.69 | 16.83% | 2.95% | 2.10% | 6.68% | |
68 Neutral | $4.48B | 24.97 | 64.68% | 0.94% | 8.12% | 16.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $3.02B | 8.21 | 14.70% | ― | 3.42% | ― |
* Industrials Sector Average
ALLE
Allegion
156.05
-11.57
-6.90%
BCO
Brink's Company
105.47
-9.10
-7.94%
MSA
MSA Safety
188.72
21.93
13.15%
NSSC
Napco Security Technologies
37.09
-2.45
-6.19%
ADT
Adt
7.46
-0.89
-10.62%
REZI
Resideo Technologies
19.88
-4.91
-19.80%
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...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Allegion Shareholders Reaffirm Board, Pay and Capital Flexibility
Positive
Jun 9, 2026
On June 4, 2026, Allegion shareholders met in Dublin for the company’s 2026 annual general meeting and re-elected all eight board nominees to one-year terms, while also giving advisory approval to the compensation of named executive officers...
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.