Allegion (ALLEN) AI Stock Analysis

Allegion

(BMV:ALLEN)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Durable Americas growthBroad-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 weaknessProlonged 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.

Allegion (ALLEN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 15.85B
Dividend Yield: 1.38%
Average Volume (3M): 4,681
Price to Earnings (P/E): 23.1
Beta (1Y): -0.11
Revenue Growth: -1.00%
EPS Growth: -2.47%
Country: Mexico
Employees: 13,300
Sector: Industrials
Sector Strength: 63
Industry: Security & Protection Services

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, gl...

Allegion Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 22, 2027

Earnings Call SentimentPositive

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.

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 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

1 New Risk

1.There have been no material changes to our risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2025. For a further discussion of our Risk Factors, refer to the “Risk Factors” discussion contained in our Annual Report on Form 10-K for the year ended December 31, 2025.Q2, 2026

Allegion Peers Comparison

Overall Rating

Financial Indicators

MX:ALLEN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

MX:ALLEN and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	MX:ALLEN	Allegion PLC	2650.00	822.45	45.00%

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.

Allegion AI Stock Analysis