Strong Growth Outlook for Allegion PLC, But Share Price Lacks Margin Of Safety

January 4, 2024

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Allegion ($NYSE:ALLE) PLC is a leading global provider of security products and solutions. The company’s portfolio includes brands such as CISA, Von Duprin, Schlage, LCN, Sargent and Falcon. Allegion’s products are used in residential, commercial and institutional buildings for safety and security. The company has seen robust growth over the past few years and is expected to continue with its expansion in the future. Despite this promising outlook, Allegion’s share price does not reflect an adequate margin of safety. Analysts note that the stock price is currently trading at a premium compared to its peers. This premium is not necessarily supported by growth prospects, as the company is expected to remain largely reliant on new product development and expanding into new markets. While Allegion has been able to successfully penetrate new markets, the company still faces competition from other established players in the industry. This competition may put pressure on margins, which could reduce the share price’s upside potential. Despite these risks, investors should consider Allegion’s long-term potential and its strong fundamentals. The company has an impressive track record of delivering strong earnings growth and has a solid balance sheet.

Additionally, Allegion has a strong presence in the security and safety industry, which is expected to continue to grow over the long-term. With its advantageous position in the industry, Allegion is well-positioned to benefit from future growth opportunities. Overall, Allegion PLC has a strong growth outlook, but its share price does not reflect an adequate margin of safety. Investors should take a long-term view and consider the company’s potential for future growth when making an investment decision.

Price History

On Tuesday, the stock opened at $125.9 and closed at $124.2, a decrease of 1.9% from the previous closing price of $126.7. This indicates that investors are not yet willing to pay a premium for Allegion PLC shares, despite the company’s positive growth prospects. The company’s focus on developing innovative products and expanding its global presence has been key to its success in recent years. The company also looks to expand its presence in emerging markets such as India and China, which could further bolster its prospects for future growth.

At the same time, however, the stock’s lack of margin of safety is a concern for investors. Despite the company’s strong performance and promising growth outlook, long-term investors may want to wait for the share price to drop further before investing in Allegion PLC. Ultimately, investors will have to weigh the risks versus the potential rewards before making a decision on whether or not to invest in the company. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

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

    Total Revenues Net Income Net Margin
    3.61k 557.1 15.5%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

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

    Operations Investing Financing
    573.5 -111.6 -389
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

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

    Total Assets Total Liabilities Book Value Per Share
    4.18k 2.95k 14.04
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

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

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    10.1% 10.3% 19.8%
    FCF Margin ROE ROA
    13.6% 37.7% 10.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    GoodWhale recently conducted an analysis of ALLEGION PLC‘s wellbeing. Our analyses revealed that the company had a strong performance in dividend, growth, profitability, and was weak in asset. Based on our evaluation, we classified ALLEGION PLC as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to a strong competitive advantage. Given such characteristics, this company could be attractive to a few types of investors. For instance, ALLEGION PLC has a high health score of 9/10 with regard to its cashflows and debt capabilities. This means that the company is able to pay off debt and fund future operations. Thus, ALLEGION PLC appeals to both value investors who can take advantage of its robust financials and growth investors who are looking for reliable earnings growth. More…

  • Star Chart Analysis
  • Valuation Analysis




  • 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 is a global provider of security and safety products, services, and solutions. Despite its strong growth outlook, the share price of Allegion PLC lacks a margin of safety due to market uncertainty. Investors should be aware that Allegion PLC’s stock is more volatile than many of its competitors. The company has generated consistent revenues in the past and is expected to continue to do so in the future. Earnings have also been solid but have been subject to unpredictable market conditions.

    Additionally, Allegion PLC’s ROI has been below the industry average, signaling potential risks. It is important for investors to research Allegion PLC’s financials thoroughly before investing in the company’s stock. This should include a thorough analysis of historical performance, current market conditions, and future outlook.

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