Download PDF

1. Company Snapshot

1.a. Company Description

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.

Show Full description

1.b. Last Insights on ALLE

Allegion plc's recent performance was driven by strong Q2 earnings and revenue beat, fueled by robust non-residential demand in the Americas. The company's acquisition of Brisant, a leading UK provider of residential security hardware, is expected to enhance its product offerings and expand its global presence. Additionally, Allegion's steady shareholder returns and strong guidance for 2025 have contributed to growing optimism about its earnings prospects.

1.c. Company Highlights

2. Allegion's Strong Q3 Earnings: A Closer Look

Allegion delivered a robust financial performance in Q3 2025, with revenue exceeding $1 billion, a 10.7% increase compared to the same period last year. Organic revenue growth was 5.9%, driven primarily by the Americas nonresidential business. The company's adjusted EPS came in at $2.3, beating estimates of $2.21. The strong top-line growth and beat on EPS were largely due to the company's continued execution of its long-term strategy, including accretive acquisitions and steady delivery on commitments to shareholders.

Publication Date: Oct -27

📋 Highlights
  • Revenue Growth:: Q3 revenue exceeded $1 billion, up 10.7% year-over-year, with organic growth at 5.9% driven by Americas nonresidential business.
  • Adjusted EPS Outlook Raised:: Full-year adjusted EPS guidance increased to $8.10–$8.20, reflecting strong execution and margin expansion.
  • Capital Allocation:: $600 million allocated to acquisitions year-to-date, including UAP and Brisant, with acquisitions contributing 13.6% to International segment revenue.
  • Cash Flow Strength:: Year-to-date available cash flow reached $485.2 million, up nearly $100 million, with 85–95% conversion of adjusted net income expected.
  • Margin Expansion:: Operating leverage on track to achieve mid-30s margin rate (excluding corporate costs) by 2026, driven by pricing, productivity, and cost control.

Segment Performance

The Americas segment was a key driver of the company's growth, with revenue increasing 7.9% on a reported basis and 6.4% on an organic basis. The nonresidential business within this segment saw mid-single-digit organic growth, supported by healthy demand for Allegion's products. The International segment also performed well, with revenue up 22.5% on a reported basis, driven in part by acquisitions and favorable currency effects.

Cash Flow and Balance Sheet

Allegion's cash generation capabilities remained strong, with year-to-date available cash flow reaching $485.2 million, an increase of nearly $100 million versus the prior year. The company's balance sheet remains robust, with a net debt to adjusted EBITDA ratio of 1.8x, supporting continued capital deployment and strategic acquisitions.

Outlook and Valuation

The company raised its 2025 adjusted EPS outlook to $8.10 to $8.20, reflecting confidence in its ongoing execution and market conditions. For 2026, analysts estimate revenue growth of 6.3%. With a current P/E Ratio of 22.44 and an EV/EBITDA ratio of 16.72, the market appears to have priced in a significant level of growth and profitability. The company's ROIC of 15.89% and ROE of 37.45% indicate strong operational efficiency and return on equity.

Future Prospects

Allegion expects to continue benefiting from its broad end-market exposure and spec activity, particularly in the nonresidential business. The company is poised to leverage its versatile spec writers and electronics adoption to drive future growth. With its disciplined approach to acquisitions and capital deployment, Allegion is well-positioned to deliver long-term value to shareholders.

3. NewsRoom

Card image cap

Allegion Declares Quarterly Dividend

Dec -04

Source: businesswire.com

Card image cap

Groupe la Francaise Acquires 4,594 Shares of Allegion PLC $ALLE

Dec -04

Source: defenseworld.net

Card image cap

Creative Planning Raises Stock Holdings in Allegion PLC $ALLE

Nov -26

Source: defenseworld.net

Card image cap

Allegion Unveils Self-Adjusting Enhancement to its LCN Senior Swing Series of Auto Operators

Nov -18

Source: prnewswire.com

Card image cap

Schlage's Pin & Tumbler™ Studio Unveils the Refined Finishes Collection: A Celebration of Quiet Elegance and Modern Craftsmanship

Nov -17

Source: prnewswire.com

Card image cap

Allegion Announces Expanded Wallet-Based Access Control Solutions with Zentra and Gatewise at OPTECH 2025

Nov -13

Source: prnewswire.com

Card image cap

Allegion plc (ALLE) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -12

Source: seekingalpha.com

Card image cap

SCHLAGE ARRIVE SELECTED AS A GOOD HOUSEKEEPING 2026 HOME RENO AWARD WINNER

Nov -12

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.85%)

6. Segments

Mechanical

Expected Growth: 3.5%

Allegion's Mechanical segment growth is driven by increasing demand for electronic access control solutions, adoption of smart locks in residential and commercial markets, and expansion in emerging markets. Additionally, the company's strategic acquisitions and investments in digital technologies, such as biometric authentication, are expected to contribute to the 3.5% growth rate.

Electronic

Expected Growth: 4.5%

Allegion plc's Electronic segment growth of 4.5% is driven by increasing demand for electronic access control solutions, growth in the Americas and EMEA regions, and rising adoption of smart home technology. Additionally, the company's strategic acquisitions and investments in digital platforms have expanded its product offerings and enhanced its competitive position.

Services and Software

Expected Growth: 4.8%

Allegion plc's Services and Software segment growth of 4.8% is driven by increasing demand for electronic access control solutions, growth in cloud-based access control, and rising adoption of digital door locks. Additionally, the company's strategic acquisitions and investments in digital technologies have expanded its offerings, contributing to the segment's growth.

7. Detailed Products

Schlage Locks

Mechanical and electronic locks for residential and commercial applications

LCN Door Closers

Door control systems for commercial and institutional applications

Von Duprin Exit Devices

Exit devices for emergency egress and panic exit hardware

Falcon Locks

Commercial-grade locks for high-security applications

SimonsVoss Digital Locks

Electronic locks with advanced features such as biometric authentication

Interflex Access Control

Access control systems for managing and monitoring access to secure areas

8. Allegion plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Allegion plc operates in the security industry, which has a moderate threat of substitutes. While there are some substitutes available, they are not highly attractive to customers, and Allegion's products and services are differentiated enough to maintain a competitive edge.

Bargaining Power Of Customers

Allegion plc's customers have limited bargaining power due to the company's strong brand reputation and the specialized nature of its products and services.

Bargaining Power Of Suppliers

Allegion plc's suppliers have some bargaining power due to the company's dependence on them for raw materials and components. However, the company's large scale of operations and diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants in the security industry is low due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The security industry is highly competitive, with several established players competing for market share. Allegion plc faces intense rivalry from companies such as ASSA ABLOY, Stanley Black & Decker, and Dormakaba.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.45%
Debt Cost 5.28%
Equity Weight 39.55%
Equity Cost 9.69%
WACC 7.02%
Leverage 152.85%

11. Quality Control: Allegion plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bouygues

A-Score: 6.9/10

Value: 8.2

Growth: 5.3

Quality: 3.7

Yield: 8.1

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Stolt-Nielsen

A-Score: 6.6/10

Value: 8.9

Growth: 6.8

Quality: 5.2

Yield: 10.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Securitas

A-Score: 5.9/10

Value: 6.2

Growth: 4.4

Quality: 3.9

Yield: 6.2

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Allegion

A-Score: 5.5/10

Value: 2.1

Growth: 6.3

Quality: 6.9

Yield: 2.5

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Danieli

A-Score: 5.3/10

Value: 7.0

Growth: 3.4

Quality: 5.2

Yield: 2.5

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Dormakaba

A-Score: 5.2/10

Value: 3.5

Growth: 5.0

Quality: 5.1

Yield: 3.8

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

159.08$

Current Price

159.08$

Potential

-0.00%

Expected Cash-Flows