Allegion PLC (ALLE, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $137.39 and a daily gain of 0.45%, coupled with a significant three-month increase of 10.56%, Allegion PLC stands out as a robust investment opportunity. A detailed analysis, supported by the GF Score, indicates that Allegion PLC is poised for substantial growth, making it a compelling choice for value investors.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Allegion PLC boasts a GF Score of 92, highlighting its exceptional potential in the market.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 7/10
Understanding Allegion PLC's Business
Allegion PLC, with a market cap of $11.97 billion and annual sales of $3.674 billion, operates as a global leader in security products. The company, domiciled in Ireland, was established through a spinoff from Ingersoll-Rand in December 2013. Allegion's portfolio includes renowned brands like Schlage, Von Duprin, and LCN, primarily competing with giants such as Assa Abloy and Dormakaba. With a robust operating margin of 20.18%, Allegion generated 75% of its sales in the United States in fiscal 2023.
Financial Strength and Profitability
Allegion PLC's financial resilience is evident from its Financial Strength rating and an impressive Interest Coverage ratio of 7.9. This indicates a strong ability to meet interest obligations, a factor highly regarded by investors like Benjamin Graham. Additionally, the company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.65.
Growth and Market Position
Allegion PLC is distinguished by its high Growth rank. The company's 3-Year Revenue Growth Rate of 12.2% surpasses 61.99% of its peers in the Business Services industry. Furthermore, its EBITDA has seen significant growth, with a three-year growth rate of 20.2, highlighting its expanding operational efficiency.
Conclusion
Considering Allegion PLC's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's superior 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.
