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Fundamental Analysis: Allegion plc

Company Overview:

• Allegion plc leads the global security market, known for its innovation and reliability.
• Its product range covers mechanical and electronic security solutions, catering to diverse needs.
• Allegion offers extensive services including maintenance and repair, ensuring customer satisfaction.
• Since 2013, Allegion has been headquartered in Dublin, driving industry innovation.

Company’s Financials:

• Earnings Growth Rate: 21.76% compounded annually over three years.
• ROIC:18.61 % efficiency in profit generation.
• ROE: 45.70% profitability relative to shareholders’ investment.
• Profit Margin: 14.80% of revenue retained as profit

Risk Factors:

• High Debt/Equity Ratio (1.53): Signifies potential financial vulnerability due to elevated debt levels compared to equity.
• High P/FCF Ratio (21.17): Implies overvaluation and potential constraints on future cash flow, posing risks for investors.

= For long-term investing, consider buying the stock when it reaches or falls below $105

Please note this is only an opinion and not financial advice.

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