Allegion plc (ALLE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Allegion plc (ALLE) Industrial Operations Profile

Allegion plc, established in 2013, is a global leader in security products and solutions, offering a comprehensive portfolio of mechanical and electronic locks, access control systems, and door hardware. With a strong brand portfolio and extensive distribution network, Allegion serves diverse end-markets, including commercial, institutional, and residential facilities.

What Is the Investment Thesis for ALLE?

Allegion presents a notable research candidate due to its strong market position, consistent profitability, and growth potential in the security industry. With a market capitalization of $12.9B and a P/E ratio of 19.75, Allegion demonstrates financial stability. The company's solid profit margin of 15.2% and gross margin of 45.0% indicate efficient operations. Growth catalysts include increasing demand for electronic security solutions and expansion into emerging markets. However, potential risks include economic downturns and increased competition. Investors should monitor these factors to assess Allegion's long-term growth prospects.

Based on FMP financials and quantitative analysis

ALLE Key Highlights

Market Cap of $12.9B reflects Allegion's significant presence in the security solutions market.

• P/E ratio of 19.75 indicates investor confidence in Allegion's earnings potential.
• Profit Margin of 15.2% demonstrates efficient cost management and strong pricing power.
• Gross Margin of 45.0% highlights the value-added nature of Allegion's products and services.
• Dividend Yield of 1.55% provides a steady income stream for investors.

Who Are ALLE's Competitors?

ALLE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ALLE's Key Strengths?

Strong brand portfolio with established brands like Schlage and Von Duprin.

• Extensive distribution network and global reach.
• Diverse product portfolio catering to various security needs.
• Consistent profitability and strong financial performance.

What Are ALLE's Weaknesses?

Exposure to economic cycles and fluctuations in construction activity.

• Dependence on third-party distributors and retailers.
• Potential for product liability claims and recalls.
• Vulnerable to cybersecurity threats and data breaches.

What Could Drive ALLE Stock Higher?

Increasing demand for electronic access control systems due to heightened security concerns.

• Expansion of smart home technology and integration of security solutions with IoT devices.
• Potential acquisitions of companies with complementary technologies or products.
• Growth in emerging markets with increasing urbanization and security needs.

What Are the Key Risks for ALLE?

Insider selling — insiders were net sellers of roughly $4.2M recently.

• Economic downturns and reduced construction spending impacting demand for security products.
• Intense competition from established players and new entrants in the security industry.
• Technological advancements rendering existing products obsolete.
• Cybersecurity threats and data breaches compromising security systems.

What Are the Growth Opportunities for ALLE?

• Expansion in Electronic Security Solutions: The increasing demand for electronic security solutions, such as access control systems and smart locks, presents a significant growth opportunity for Allegion. The global electronic security market is projected to reach $42.6 billion by 2027, growing at a CAGR of 8.9% from 2020. Allegion can capitalize on this trend by investing in research and development to enhance its electronic security offerings and expand its market share.
• Geographic Expansion in Emerging Markets: Emerging markets, such as Asia-Pacific and Latin America, offer substantial growth opportunities for Allegion. These regions are experiencing rapid urbanization and increasing security concerns, driving demand for security products and solutions. Allegion can leverage its global presence and distribution network to penetrate these markets and establish a strong foothold.
• Strategic Acquisitions and Partnerships: Allegion can pursue strategic acquisitions and partnerships to expand its product portfolio, enhance its technological capabilities, and enter new markets. By acquiring companies with complementary products or technologies, Allegion can strengthen its competitive position and accelerate its growth trajectory. Potential acquisition targets include companies specializing in cybersecurity, smart home technology, and access control solutions.
• Focus on Innovation and Product Development: Continuous innovation and product development are crucial for Allegion to maintain its competitive edge in the security industry. The company should invest in research and development to develop new and innovative security solutions that address evolving customer needs and security threats. This includes developing products that integrate with IoT devices, utilize artificial intelligence, and offer enhanced cybersecurity features.
• Enhancing Service Offerings and Customer Support: Providing excellent service and customer support is essential for building customer loyalty and driving repeat business. Allegion can enhance its service offerings by providing installation, maintenance, and training services for its products. The company can also invest in customer support infrastructure, such as online portals and call centers, to provide timely and effective assistance to customers.

What Are ALLE's Competitive Advantages?

• Strong brand recognition with well-known brands like Schlage and Von Duprin.
• Extensive distribution network through various channels.
• Diverse product portfolio catering to a wide range of security needs.
• Established relationships with key customers and partners.

What Does ALLE Do?

Allegion plc, incorporated in 2013 and headquartered in Dublin, Ireland, is a global manufacturer and provider of security products and solutions. Spun off from Ingersoll Rand, Allegion has quickly established itself as a leader in the security industry. The company's extensive product portfolio includes mechanical and electronic locks, door closers and controls, exit devices, access control systems, and related accessories. These products are marketed under well-known brands such as CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin. Allegion serves a diverse range of end-markets, including commercial, institutional, and residential facilities. Its products are utilized in education, healthcare, government, hospitality, commercial office, and single and multi-family residential settings. The company distributes its products through a variety of channels, including specialty distribution, e-commerce platforms, wholesalers, do-it-yourself home improvement centers, and specialty showroom outlets. Allegion's commitment to innovation and customer service has solidified its position as a trusted provider of security solutions worldwide.

What Products and Services Does ALLE Offer?

• Manufactures and sells mechanical locks and locksets.
• Provides electronic security products and access control systems.
• Offers door closers, controls, and exit devices.
• Develops time, attendance, and workforce productivity systems.
• Produces doors and door systems for various applications.
• Sells key systems and related services.
• Provides a range of security accessories.

How Does ALLE Make Money?

• Manufactures and sells security products through distribution and retail channels.
• Generates revenue from sales to end-users in commercial, institutional, and residential facilities.
• Offers a diverse product portfolio under various brands, including Schlage and Von Duprin.
• Focuses on innovation and product development to meet evolving customer needs.

What Industry Does ALLE Operate In?

Allegion operates in the security and protection services industry, which is experiencing growth driven by increasing security concerns and technological advancements. The market is competitive, with key players including ITT Inc., Textron Inc., and Carlisle Companies Incorporated. Allegion differentiates itself through its diverse product portfolio, strong brand recognition, and extensive distribution network. The industry is also influenced by trends such as the adoption of smart home technology and the integration of security systems with IoT devices.

Who Are ALLE's Key Customers?

• Commercial facilities, including office buildings and retail stores.
• Institutional facilities, such as schools, hospitals, and government buildings.
• Residential facilities, including single-family homes and multi-family apartments.
• Education sector
• Healthcare sector

Over the past six months, Allegion plc insiders filed 33 SEC Form 4 transactions — 20 sales and 13 purchases. On net that is roughly 19K shares disposed (about $4.2M), a signal worth weighing alongside the fundamentals.

Wall Street analysts project Allegion plc revenue of about $4.41B for fiscal 2026, with EPS near $8.95. The estimate reflects 9 contributing analysts.

Allegion plc has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.1% above estimates on average.

Allegion plc's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.51 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Allegion plc stands at 32.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.9%, showing how much profit it generates from its asset base. ALLE trades at a trailing price-to-earnings ratio of 19.75, below the Industrials sector average of ~28.00x. Its free cash flow yield is 6.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.91 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.7%, the inverse of the P/E and a quick read on earnings relative to price.

Allegion plc (ALLE) Valuation Context

Valued at $12.9B, ALLE is classified as a large-cap stock. Analyst price targets span from $142.00 to $170.00, with a consensus of $156.00. At the current price of $151.27, that implies approximately 3% upside potential. Relative to its peer group, ALLE's quantitative score of 82/100 is above the peer average of 66/100.

ALLE Revenue & Earnings Trend

In Jun 2026, ALLE generated $1.15B in top-line revenue, marking a sequential increase of 11.4%. The company recorded net income of $184.6M, with diluted EPS of $2.15. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Industrials company. Across the four most recent quarters, ALLE averaged $1.91 in diluted EPS.

Company Profile

Allegion plc operates in the Security & Protection Services industry within the Industrials sector. It is headquartered in Dublin, IE. The company is led by CEO John H. Stone. ALLE has traded publicly since 2013.

ALLE Financials

ALLE earnings history & estimates →

ALLE Latest News

ALLE Analyst Consensus

ALLE MoonshotScore

ALLE Industrials Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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