Allegion PLC (ALLE, Financial) has recently captured the attention of investors and financial analysts with its robust financial health and promising market position. With a current share price of $128.62, Allegion PLC has experienced a daily gain of 1.34% and a three-month increase of 3.83%. A detailed analysis, supported by the GF Score, indicates that Allegion PLC is poised for significant growth, making it a compelling choice for investors.
Understanding the GF Score
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance through five key aspects of valuation. This system, which ranges from 0 to 100, has proven its effectiveness in correlating with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. For Allegion PLC, the GF Score is an impressive 93 out of 100, indicating a strong potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Company Overview
Allegion PLC is a leading global security products company, boasting a portfolio of top brands such as Schlage, Von Duprin, and LCN. Headquartered in Ireland, Allegion was established through a spinoff from Ingersoll-Rand in December 2013. With a market cap of $11.25 billion and annual sales of $3.62 billion, the company enjoys a strong operating margin of 19.8%. Allegion's primary markets include the United States, where it generated 75% of its sales in fiscal 2023, competing chiefly with Assa Abloy and Dormakaba.
Financial Strength and Profitability
Allegion PLC's financial resilience is highlighted by its Financial Strength rating and an Interest Coverage ratio of 7.76, indicating its capability to comfortably meet interest obligations. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.56. Additionally, Allegion's Profitability Rank and Predictability Rank of 4.0 stars further underscore its consistent operational performance and reliability for investors.
Growth Trajectory
Allegion PLC's commitment to growth is evident in its high Growth Rank. The company has achieved a 3-Year Revenue Growth Rate of 12.2%, surpassing 62.02% of its peers in the Business Services industry. Its EBITDA has also seen significant growth, with a three-year growth rate of 20.2 and a five-year rate of 8, highlighting its ongoing ability to expand and generate increased earnings.
Conclusion
Considering Allegion PLC's strong financial foundation, high profitability, and consistent growth metrics, the GF Score effectively highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
