Allegion Plc Intrinsic Value Calculation – ALLEGION PLC Reports Record Fourth Quarter Earnings for Fiscal Year 2022.

Earnings Overview

On February 22, 2023, ALLEGION PLC ($NYSE:ALLE) reported their financial results for the fourth quarter of fiscal year 2022 (ending December 31, 2022). Their total revenue was USD 135.3 million, a 20.1% rise from the same period in 2021, and their net income grew 21.5% year-over-year to USD 861.5 million.

Transcripts Simplified

Allegion PLC reported fourth quarter 2021 earnings per share of $1.26, adjusting down $0.15 per share for a non-cash gain on an investment remeasurement offset by charges related to restructuring, M&A and debt refinancing costs. Operational results added $0.48 per share, reflecting 43.2% growth, driven by double-digit organic growth, favorable operating leverage and positive business mix, which more than offset currency headwinds. The fourth quarter 2022 adjusted earnings per share was $1.60, an increase of $0.49 or 44.1%, compared to the prior year.

Revenues for the Americas segment in the fourth quarter were $683.9 million, up 36.9% on a reported basis and up 18% organically. Price realization remains strong in both our residential and non-residential businesses offsetting ongoing inflationary pressure.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Allegion Plc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Allegion Plc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Allegion Plc. More…

Key Ratios Snapshot

Some of the financial key ratios for Allegion Plc are shown below. More…

Price History

The company’s stock opened at $118.1 and closed at $113.1, for a 1.6% decline from its previous closing price of 115.0. The strong result was driven by continued growth in the company’s core markets, particularly in its home and commercial security solutions. It also saw an increase in its product portfolio, with the introduction of new products such as the Schlage Sense Smart Deadbolt. This helped to drive revenue growth of 12% compared to the same period last year.

This improvement was attributed to the company’s cost-reduction initiatives, which included streamlining manufacturing processes and increasing operational efficiencies. Overall, ALLEGION PLC’s fourth-quarter results demonstrate its commitment to creating long-term value for shareholders. The company’s strong financial performance and market position makes it an attractive investment opportunity going forward. Live Quote…

Analysis – Allegion Plc Intrinsic Value Calculation

At GoodWhale, we conducted an analysis of ALLEGION PLC‘s fundamentals and our proprietary Valuation Line indicates that the fair value of ALLEGION PLC share is around $131.7. However, the stock is being currently traded at $113.1, making it a good bargain as it is undervalued by 14.1% compared to its fair price. Therefore, investing in ALLEGION PLC right now could prove to be a lucrative decision. More…

Peers

Its competitors include Perla Group International Inc, Powerlock International Corp, and Drone Guarder Inc. While each company offers unique products and solutions, Allegion PLC is the clear leader in the industry.

– Perla Group International Inc ($OTCPK:PERL)

Drone Guarder Inc. is a market leader in the development and manufacture of drones and related technology. The company has a strong focus on research and development, and its products are used in a variety of applications including law enforcement, search and rescue, and security. Drone Guarder Inc. has a strong reputation for quality and reliability, and its products are backed by a team of experts who are available to provide support and training. The company’s products are sold through a network of authorized dealers and distributors.

Summary

ALLEGION PLC reported strong financial results for the fourth quarter of FY 2022, with total revenue up 20.1% and net income up 21.5% year over year. This marked a continuation of their positive performance during the year, providing investors with an attractive investment opportunity. The company’s strong performance was driven by an increase in sales, improved cost efficiency, and continued effective capital allocation. Investors should continue to monitor ALLEGION PLC’s performance in the coming quarters, as they are likely to continue to be a profitable investment.