# Allegion (ALLE.US)

Canonical: https://gigainvestors.com/s/ALLE

Analysis as of: 2026-10-16T07:26:24.288Z. Financial observations: FY2011–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $155.75 per share; close as of 2026-10-15.

Estimated value: low $123.98 per share, central $179.59 per share, high $210.60 per share. Buy at or below the central value $179.59 per share. Valuation as of 2026-10-16T07:26:24.288Z; scenarios are not confidence intervals.

Expected annual return: 11.0% at the stated quote. About 11.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.19×

- FY2019: 0.20×

- FY2020: 0.15×

- FY2021: 0.18×

- FY2022: 0.18×

- FY2023: 0.19×

- FY2024: 0.21×

- FY2025: 0.21×

- LTM to Jun 2026: 0.21×

### moat: pass

- ROIC, median of available years: 46.3%

- ROIC, second-lowest year: 36.2%

- Typical minus recent gross margin: -0.6 pp

- Typical gross margin (annual median): 43.6%

- Recent gross margin (lower of latest and 3-year median): 44.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 19.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 62.1%

- FY2017: 52.9%

- FY2018: 51.9%

- FY2019: 50.0%

- FY2020: 36.2%

- FY2021: 48.9%

- FY2022: 39.1%

- FY2023: 43.6%

- FY2024: 40.3%

- FY2025: 34.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.9B

- Net income, five-year total: $2.7B

- Return on incremental invested capital: 422.9%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.6 pp

- Working capital / revenue, final three-year average: 17.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.08×

- FY2022: 1.07×

- FY2023: 1.05×

- FY2024: 1.05×

- FY2025: 1.05×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 52.9% vs 40.3%

- Per-share earnings: 2.36 to 6.82 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.1%

- Ordinary dilution, 5-year annual growth: -1.4%

- Market cap gain: $7.5B

- Cumulative retained earnings: $1.9B

- Diluted shares, 10-year annual growth: -1.1%

- Diluted shares, 5-year annual growth: -1.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.2%

- Per-share value change: $4.46

- Per-share value, starting three-year median: $2.36

- Per-share value, ending three-year median: $6.82

- Buybacks concentrated in cheaper years (correlation): -0.43

- Average buyback yield: 1.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.8B

- Cumulative net income, 10 years: $4.4B

- ROIC, first three-year median: 52.9%

- ROIC, last three-year median: 40.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.36

- FY2017: $2.85

- FY2018: $4.54

- FY2019: $4.26

- FY2020: $3.39

- FY2021: $5.34

- FY2022: $5.19

- FY2023: $6.12

- FY2024: $6.82

- FY2025: $7.43

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.22×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.6%

- FY2017: -2.9%

- FY2018: -0.8%

- FY2019: -2.9%

- FY2020: -5.7%

- FY2021: -0.2%

- FY2022: -0.0%

- FY2023: -1.4%

- FY2024: -1.7%

- FY2025: -2.7%

## Holders

## Price story

Price needs cash profits to grow 5.7% a year for ten years · "Allegion Q2 Earnings Beat on Americas Growth, Outlook Raised" (finance.yahoo.com, Jul 2026) · sales +5.4%

Story as of 2026-10-16T09:58:16.765Z; price observation 2026-10-15.

Price needs cash profits to grow 5.7% a year for ten years

- 2025-05-12: ALLE Q1 Earnings Call: Margin Expansion and Pricing Actions Amid Tariff Volatility ([finance.yahoo.com](https://finance.yahoo.com/news/alle-q1-earnings-call-margin-092438189.html))

- 2025-07-24: Allegion raises 2025 EPS outlook to $8–$8.15 as nonresidential demand and acquisitions drive growth ([seekingalpha.com](https://seekingalpha.com/news/4471598-allegion-raises-2025-eps-outlook-to-8-8_15-as-nonresidential-demand-and-acquisitions-drive?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-18: ALLE Q4 Deep Dive: Weak Americas Residential and Modest Guidance Drive Cautious Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/alle-q4-deep-dive-weak-053321831.html))

- 2026-07-23: Allegion Q2 Earnings Beat on Americas Growth, Outlook Raised ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/allegion-q2-earnings-beat-americas-162600223.html))

### Sales · FY2025–2026

sales +5.4%; source https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm; observed 2026-02-17.

- FY2017: $2.4B 

- FY2018: $2.7B 

- FY2019: $2.9B 

- FY2020: $2.7B 

- FY2021: $2.9B 

- FY2022: $3.3B 

- FY2023: $3.7B 

- FY2024: $3.8B 

- FY2025: $4.1B 

- FY2026: $4.3B 

### Gross margin · FY2025

gross margin 45.2%; source https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm; observed 2026-02-17.

- FY2016: 44.2% 

- FY2017: 44.6% 

- FY2018: 43.0% 

- FY2019: 43.9% 

- FY2020: 43.3% 

- FY2021: 42.0% 

- FY2022: 40.4% 

- FY2023: 43.3% 

- FY2024: 44.2% 

- FY2025: 45.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in security & protection services; annual sales are USD 4.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm (filed 2026-02-17); FY2025: revenue 4067300000; grossProfit 1838300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALLE.US: Allegion plc engages in the provision of security products and solutions worldwide. It is operating through two segments: Allegion Americas and Allegion International. The company offers door controls, door control system, and exit devices; doors, glass and door systems, and accessories; electronic security products and access control systems, including time, attendance, and workforce productivity; and locks, locksets, portable locks, and key systems. It also provides services and software, such as inspection, maintenance, and repair services for its automatic entrance solutions; software as a service, including access control, platform integration, and workforce management solutions; and ongoing aftermarket services, and design and installation offerings. In addition, the company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, retail, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands. It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, online and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is based in Dublin, Ireland.

### Why customers stay

Margins ranged from 43.3% to 45.2% during 2023–25; it earns 46.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 43.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 44.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 45.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.6212327500069602],[2017,0.5286094510616914],[2018,0.5185813100506319],[2019,0.4999170789617732],[2020,0.3619140193197631],[2021,0.48926306664782776],[2022,0.39121195341099724],[2023,0.4363133888283203],[2024,0.40256154096237623],[2025,0.3465818018487399]]; median 0.46278822773807404. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 80 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 0; upkeep 42500000; owner earnings 253500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 0; upkeep 49300000; owner earnings 290900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 0; upkeep 49100000; owner earnings 472000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 0; upkeep 65600000; owner earnings 419200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 0; upkeep 47100000; owner earnings 348200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 0; upkeep 45400000; owner earnings 520700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 0; upkeep 64000000; owner earnings 491900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 84200000; owner earnings 567800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 92100000; owner earnings 624400000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm (filed 2026-02-17); FY2025: growth capex 0; upkeep 98100000; owner earnings 678900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,46000000],[2017,60900000],[2018,79400000],[2019,100600000],[2020,117300000],[2021,129000000],[2022,143900000],[2023,158700000],[2024,167000000],[2025,175300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 80000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALLE.US SharesStats.PercentInsiders = 0.231 percentage points; cache date 2026-10-16.

### What could break it

"Our global operations subject us to political, economic and regulatory risks" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm (filed 2026-02-17); Our global operations subject us to political, economic and regulatory risks

### What the price says

The price assumes cash profits grow 5.7% yearly over ten years; actual growth was 16%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate 0.08387327907921016. Price 155.75; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.7730331951785239 → FY2025 7.839491916859123. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $63.84 per share

- 2016-11: $66.91 per share

- 2016-12: $64.00 per share

- 2017-01: $65.67 per share

- 2017-02: $72.59 per share

- 2017-03: $75.70 per share

- 2017-04: $78.64 per share

- 2017-05: $78.63 per share

- 2017-06: $81.12 per share

- 2017-07: $81.24 per share

- 2017-08: $78.71 per share

- 2017-09: $86.47 per share

- 2017-10: $83.39 per share

- 2017-11: $84.14 per share

- 2017-12: $79.56 per share

- 2018-01: $86.11 per share

- 2018-02: $84.11 per share

- 2018-03: $85.29 per share

- 2018-04: $77.18 per share

- 2018-05: $76.43 per share

- 2018-06: $77.36 per share

- 2018-07: $81.54 per share

- 2018-08: $87.22 per share

- 2018-09: $90.57 per share

- 2018-10: $85.73 per share

- 2018-11: $91.59 per share

- 2018-12: $79.71 per share

- 2019-01: $85.86 per share

- 2019-02: $89.96 per share

- 2019-03: $90.71 per share

- 2019-04: $99.23 per share

- 2019-05: $97.05 per share

- 2019-06: $110.55 per share

- 2019-07: $103.54 per share

- 2019-08: $96.27 per share

- 2019-09: $103.65 per share

- 2019-10: $116.04 per share

- 2019-11: $120.03 per share

- 2019-12: $124.54 per share

- 2020-01: $129.32 per share

- 2020-02: $114.99 per share

- 2020-03: $92.02 per share

- 2020-04: $100.54 per share

- 2020-05: $99.70 per share

- 2020-06: $102.22 per share

- 2020-07: $99.46 per share

- 2020-08: $103.39 per share

- 2020-09: $98.91 per share

- 2020-10: $98.50 per share

- 2020-11: $114.04 per share

- 2020-12: $116.38 per share

- 2021-01: $107.01 per share

- 2021-02: $108.78 per share

- 2021-03: $125.62 per share

- 2021-04: $134.38 per share

- 2021-05: $140.48 per share

- 2021-06: $139.30 per share

- 2021-07: $136.60 per share

- 2021-08: $143.99 per share

- 2021-09: $132.18 per share

- 2021-10: $128.30 per share

- 2021-11: $123.64 per share

- 2021-12: $132.44 per share

- 2022-01: $122.73 per share

- 2022-02: $114.52 per share

- 2022-03: $109.78 per share

- 2022-04: $114.24 per share

- 2022-05: $111.65 per share

- 2022-06: $97.90 per share

- 2022-07: $105.70 per share

- 2022-08: $95.10 per share

- 2022-09: $89.68 per share

- 2022-10: $104.77 per share

- 2022-11: $113.65 per share

- 2022-12: $105.26 per share

- 2023-01: $117.55 per share

- 2023-02: $112.71 per share

- 2023-03: $106.73 per share

- 2023-04: $110.48 per share

- 2023-05: $104.74 per share

- 2023-06: $120.02 per share

- 2023-07: $116.86 per share

- 2023-08: $113.81 per share

- 2023-09: $104.20 per share

- 2023-10: $98.36 per share

- 2023-11: $106.09 per share

- 2023-12: $126.69 per share

- 2024-01: $123.89 per share

- 2024-02: $127.87 per share

- 2024-03: $134.71 per share

- 2024-04: $121.56 per share

- 2024-05: $121.82 per share

- 2024-06: $118.15 per share

- 2024-07: $136.81 per share

- 2024-08: $138.84 per share

- 2024-09: $145.74 per share

- 2024-10: $139.63 per share

- 2024-11: $140.84 per share

- 2024-12: $130.68 per share

- 2025-01: $132.73 per share

- 2025-02: $128.71 per share

- 2025-03: $130.46 per share

- 2025-04: $139.20 per share

- 2025-05: $142.70 per share

- 2025-06: $144.12 per share

- 2025-07: $165.92 per share

- 2025-08: $169.80 per share

- 2025-09: $177.35 per share

- 2025-10: $165.77 per share

- 2025-11: $166.03 per share

- 2025-12: $159.22 per share

- 2026-01: $165.39 per share

- 2026-02: $161.15 per share

- 2026-03: $145.29 per share

- 2026-04: $137.48 per share

- 2026-05: $130.07 per share

- 2026-06: $140.49 per share

- 2026-07: $157.40 per share

- 2026-08: $155.25 per share

- 2026-09: $153.77 per share

- 2026-10: $155.75 per share

## Annual estimated value (USD per share)

- FY2016: low $23.73 per share, central $26.63 per share, high $30.47 per share

- FY2017: low $27.13 per share, central $30.27 per share, high $34.45 per share

- FY2018: low $37.73 per share, central $42.61 per share, high $49.09 per share

- FY2019: low $43.12 per share, central $48.63 per share, high $55.97 per share

- FY2020: low $45.60 per share, central $51.26 per share, high $58.78 per share

- FY2021: low $71.34 per share, central $102.34 per share, high $119.63 per share

- FY2022: low $83.41 per share, central $120.52 per share, high $141.22 per share

- FY2023: low $94.73 per share, central $136.14 per share, high $159.24 per share

- FY2024: low $102.14 per share, central $146.75 per share, high $171.64 per share

- FY2025: low $116.06 per share, central $167.85 per share, high $196.73 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:00.104Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1579241/000157924126000007/alle-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.