Allegion plc (ALLE) AI Stock Analysis

Established in 2013 and headquartered in Dublin, Ireland, Allegion plc provides mechanical and electronic security solutions for commercial, institutional, and residential facilities. Its product lineup features door controls, exit devices, locks, key systems, access control systems, and workforce time management solutions. The company complements its hardware with inspection, maintenance, and repair services, alongside software as a service (SaaS) offerings for IoT integration and access management. Allegion sells products globally across education, healthcare, government, hospitality, and residential sectors under recognized brands like CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin through distributors, wholesalers, and retail outlets.

Allegion expanded revenue from $2.87B in FY2021 to $4.07B in FY2025, recording a 5-year revenue compound annual growth rate of 8.4%. Operating margin expanded from 18.5% in FY2021 to 21.1% in FY2025, while gross margin improved from 42.0% to 45.2% over the same period. Annual net income grew from $483.0M in FY2021 to $643.8M in FY2025, with EPS increasing from $5.19 to $8.14. In the latest quarter ended June 30, 2026, Allegion delivered quarterly revenue growth of 12.7% year-over-year and quarterly earnings growth of 16.2% year-over-year, supported by trailing twelve month revenue of $4.29B.

As of June 30, 2026, Allegion held $320.6M in cash and short-term investments against total debt of $2.03B, resulting in net debt of $1.71B. The balance sheet carried a current ratio of 1.93 and a debt-to-equity ratio of 0.96 with shareholders' equity of $2.12B. Operating cash flow reached $783.8M in FY2025. During FY2025, capital expenditures were $98.1M, while the company returned capital to shareholders via $175.3M in dividends paid and $80.0M in share buybacks.

Allegion trades at a trailing price-to-earnings ratio of 20.5x and a forward P/E of 15.9x, which are both below the median of its S&P 500 Industrials peers at 28.5x and 20.7x, respectively. The company's enterprise value to EBITDA ratio stands at 14.3x compared to 17.7x for its peer median. Its price-to-sales multiple is 3.1x versus the peer median of 3.3x. Over the past year, Allegion's stock declined 10.5%, lagging the S&P 500 benchmark return of 16.8%, and its 5-year return of 25.8% trails the benchmark return of 83.0%.

Allegion offers an annual forward dividend of $2.20 per share, representing a dividend yield of 1.41% and a payout ratio of 25.6%. The company has paid dividends for 13 consecutive years and posted a 5-year annualized dividend growth rate of 9.8%. The last ex-dividend date was September 15, 2026.

Wall Street coverage includes 5 Strong Buy, 1 Buy, and 5 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $178.00, representing a 13.7% premium over the last close of $156.54. Analysts estimate full-year FY2026 EPS of $8.97 on revenue of $4.41B, followed by FY2027 EPS of $9.79 on revenue of $4.62B. Allegion has beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.

This page is an AI-written research summary of Allegion plc (ALLE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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