Stocks analysis

Analysis for ALLE

$155.75 +3.25 (+2.13%)
  • ๐Ÿ“ˆ Growth โ€” 22/30
  • ๐Ÿ’ฐ Profitability โ€” 18/20
  • ๐Ÿฆ Financial Health โ€” 17/20
  • ๐Ÿ’ต Valuation โ€” 12/20
  • โš ๏ธ Risk โ€” 4/10
Overall Score: 75/100

Summary:


๐Ÿ“ˆ Growth & Financial Trajectory

From 2024 Q2 to 2026 Q2 Allegion's revenues rose from $967.1M to $1,151.5M, a gain of +19%. Net income grew from $174.2M to $184.6M (+6%). The 8-quarter trajectory shows a mid-2024 dip, then a steady upturn with a peak in 2026 Q2. Operating income expanded from $209.0M to $254.7M, signaling improving operating leverage despite quarterly fluctuations.

๐Ÿ’ฐ Margins & Cash Flow

Gross margin remained in the mid-40s, roughly 44.7%โ€“44.9% (start 44.7%, end 44.9%). Operating margin progressed from about 21.6% to 22.1%, reflecting healthy leverage. Operating cash flow was strong, with 2026 Q2 Net Cash From Operating Activities at $198.4M and a positive net cash flow of $11.7M for the quarter. Investing cash flow was negative (about -$16.3M in the period) while financing activity was negative (-$169.2M), consistent with ongoing balance sheet optimization.

๐Ÿ›ก๏ธ Balance Sheet & Liquidity

Total assets ~$5.36B, liabilities ~$3.24B, and equity ~$2.12B. Current assets $1.50B vs current liabilities $0.78B yield a strong current ratio ~1.93. Longโ€‘term debt $2.03B; liquidity indicators suggest resilience to nearโ€‘term shocks.

โš ๏ธ Key Drivers & Risks

  • Drivers: Steady global demand for security solutions; effective operating leverage from SG&A discipline.
  • Risks: Cyclicality in construction/real estate exposure; valuation sensitivity to revenue volatility and rate changes.

๐Ÿ“Š Key Financial Fundamentals

Valuation Multiples
Market Cap $13.04B
P/E Ratio 19.81
Forward P/E 16.76
P/S Ratio 3.04
P/B Ratio 5.70
EV / EBITDA 14.29
Profitability & Returns
Gross Margin 44.80%
Operating Margin 20.75%
Net Margin 15.36%
ROE 31.99%
ROIC 16.10%
Financial Health & Liquidity
Current Ratio 1.93
Quick Ratio 1.23
Financial Scale & Cash Flow
Revenue $4.29B
Net Income $0.66B
FCF Yield 5.14%
Free Cash Flow $0.67B
Total Debt To Equity 0.96