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Allegion plc ("Allegion," "we," "us" or "the Company") is a leading global provider of security products and solutions that keep people and assets safe and secure in the places they live, learn, work and connect. Both developing and partnering are central to our work to create ecosystems that enable seamless access experiences and an uninterrupted and secure flow of people and assets.
$137.24
$2.24 (-1.61%)
EOD Jul 17, 2026
Margins and capital returns are both well above average: 21.13% operating margin, ROIC at 18.68%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 7.8%, steady but not accelerating.
Even for strong businesses, today's 19x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
18.7x earnings, 17.4x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$4.16B
▲ +7.8% YoY
Net Income (TTM)
$634M
▲ +7.7% YoY
Op. Margin
20.64%
▲ +0.4pp YoY
ROIC
17.35%
▼ -0.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$683M
▲ +17.6% YoY
Op. Cash Flow (TTM)
$781M
▲ +16.1% YoY
Net Debt
$1.92B
Cash & Equiv.
$309M
5Y CAGR: +8.4%
5Y CAGR: +9.1%
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At a P/E of 18.7 and a price-to-free-cash-flow of 17.4, Allegion (ALLE) trades below a two-stage DCF intrinsic value of about $186.29 per share, so at $137.24 the stock looks undervalued (35.7% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Allegion scores 78/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.5%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $186.29 per share for ALLE, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $139.72. At today's $137.24, that puts the stock about 35.7% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Allegion scores 78 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 20.6% operating margin and a 17.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Allegion pays a regular dividend of about $2.07 per share per year (typically in quarterly installments), a yield of roughly 1.5% at the current price. That is a payout ratio of about 28.3% of earnings, so the dividend is amply covered by earnings. Allegion has grown the dividend at roughly 8.0% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For ALLE's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. ALLE currently trades below its estimated intrinsic value and scores 78/100 on quality (solid). It also yields about 1.5%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.