ALLE Security & Protection Services
Allegion plc
Allegion makes the locks, exit devices, door closers, doors, and electronic access control that secure buildings and homes, under more than 40 brands including Schlage, Von Duprin, LCN, CISA, and SimonsVoss. It was spun off from Ingersoll Rand in 2013 and is incorporated in Ireland. FY2025 revenue was $4.1 billion (+7.8%) and operating income $860 million; the Americas business earns most of the profit at a 27.9% segment margin. Allegion bought nine companies in 2025 for about $632 million, led by Germany's ELATEC.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:28 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- Allegion plc
- Headquarters
- DUBLIN 7, Ireland
- Incorporated in
- Ireland
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: ALLE
- Industry
- Security & Protection Services
- CIK
- 1579241
- Website
- https://www.allegion.com/ ↗
Workforce (as of FY2025 year-end)
Employees
13,300
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 23–31 days after quarter end (Oct 23, 2025; Oct 24, 2024; Oct 31, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 23–51 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Jul 23, 2026 (+23 days) | Jul 23, 2026 10-Q (+23 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 28, 2026 (+28 days) | Apr 28, 2026 10-Q (+28 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 17, 2026 (+48 days) | Feb 17, 2026 10-K (+48 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 23, 2025 (+23 days) | Oct 23, 2025 10-Q (+23 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 24, 2025 (+24 days) | Jul 24, 2025 10-Q (+24 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 24, 2025 (+24 days) | Apr 24, 2025 10-Q (+24 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 18, 2025 (+49 days) | Feb 18, 2025 10-K (+49 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 24, 2024 (+24 days) | Oct 24, 2024 10-Q (+24 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 24, 2024 (+24 days) | Jul 24, 2024 10-Q (+24 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 25, 2024 (+25 days) | Apr 25, 2024 10-Q (+25 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 20, 2024 (+51 days) | Feb 20, 2024 10-K (+51 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 31, 2023 (+31 days) | Oct 31, 2023 10-Q (+31 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Both
Door controls and exit devices
Examples: Von Duprin, LCN, Stanley Access Technologies automatic doors
Life-safety hardware for fire doors and building exits.
Both
Locks and key systems
Examples: Schlage, CISA, Bricard, Gainsborough, AXA portable locks
Mechanical locksets and master key systems.
Both
Electronic security and access control
Examples: Schlage electronic locks, SimonsVoss, ELATEC readers, Interflex
Electronic locks, credentials, readers, and workforce management.
Americas
Doors and accessories
Examples: Steelcraft, Republic, Ives, Glynn-Johnson, Trimco
Hollow metal doors, frames, and door hardware.
Brands and descriptions are from the FY2025 Form 10-K's Item 1.
04
Recent strategic focus
FY2025 developments from the 10-K.
Acquisition spree
Nine acquisitions in 2025 — Next Door, Lemaar, Trimco, Novas, ELATEC, Gatewise, Waitwhile, UAP, and Brisant — for about $632M in total.
Source: Form 10-K (FY2025) Note on acquisitions
Electronics push
ELATEC (RFID readers), Gatewise (multifamily smart access), and Waitwhile (appointment and queue software) extend Allegion into electronics and software.
Source: Form 10-K (FY2025) Note on acquisitions
Mobile credentials
Schlage launched Resident Key in Apple and Google wallets and an Airbnb 'airkey' integration.
Source: Form 10-K (FY2025) Item 1
Capex ÷ D&A (FY2025)
0.76x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$98M ÷ $130M = 0.76x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
3.2%
formularesearch & development expense ÷ revenue × 100
e.g.$132M ÷ $4,067M × 100 = 3.2%
M&A spend (5-year total)
$1.69B
Latest year: $592M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $45M in FY2021 to $98M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$4.07B
As reported in the 10-K
Revenue CAGR (4 years)
+9.1%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($4,067M ÷ $2,867M) ^ (1÷4) − 1 = 9.1%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
21.1%▲favorable
+2.6pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$860M ÷ $4,067M × 100 = 21.1%
ROE (FY2025)
36.1%▲favorable
5-year average: 48.8%
As reported in the 10-K
P/B (FY2025 end)
6.63x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.21.4x × $7.44 ÷ $24.02 = 6.63x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
15.6x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($13,777M + $1,980M − $356M) ÷ ($860M + $130M) = 15.6x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +9.1% a year over 4 years (strong growth)
From $2.87B in FY2021 to $4.07B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 18.5% → 21.1%
How much operating profit is left per $100 of revenue. It moved +2.6 points over 4 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 39.6% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 48.8% over 5 years (latest: 36.1%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Allegion Americas
Locks, exit devices, door closers and controls, doors and frames, electronic access control, and services in North and South America, sold mostly through specialty distributors and wholesalers for commercial and institutional buildings, and through home improvement retailers and e-commerce for homes.
01 what it draws on
Inputs & resources
- Brands such as Schlage, Von Duprin, LCN, and Steelcraft
- Specification writers who work with architects and engineers
- Distributor and retail channels
02 what it does
Activities
- Designing and manufacturing mechanical and electronic security products
- Custom-configuring door openings to building codes
03 who it serves
Customers
- Schools, hospitals, offices, government, retail, and homeowners — through distributors and retailers
04 how money comes in
How it earns
- Product sales
- Inspection, maintenance, and repair services (Stanley Access Technologies)
- Software subscriptions
Allegion Americas: how it makes money
- Revenue $3.22B (+6.9%) and segment operating income $897M (27.9% margin) in FY2025.
- Excluding 2025 acquisitions, non-residential revenue grew by a high-single-digit percent while residential revenue fell by a low-single-digit percent.
- Americas electronic product revenue grew by a low-double-digit percent.
Allegion International
Security products, electronic locking, access control, and workforce management software in Europe and Asia-Pacific, under brands such as CISA, SimonsVoss, Interflex, AXA, and Bricard.
01 what it draws on
Inputs & resources
- European and Australian brands and plants
- Acquired businesses such as ELATEC
02 what it does
Activities
- Making locks, cylinders, and electronic access products
03 who it serves
Customers
- Commercial and residential customers in Europe, Asia, and Oceania
04 how money comes in
How it earns
- Product sales and SaaS
Allegion International: how it makes money
- Revenue $849M (+11.7%) and segment operating income $77M (9.0% margin) in FY2025, helped by acquisitions and currency.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Allegion Americas
3,219 (79%)profit 897 · margin 27.9%
Allegion International
849 (21%)profit 77 · margin 9.1%
Source: Form 10-K (FY2025) — MD&A, segment results Profit is segment operating income before corporate expenses; consolidated operating income was $860M.
07
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Allegion sells products mostly through distribution and retail rather than long-term contracts, with specification writers helping architects and engineers design door openings. Stanley Access Technologies sells inspection, maintenance, and repair services, and some brands sell software as a service.
Product sales through distributors and retailers
Most of FY2025 revenue
Typical term: Order-by-order through channel partners
The 10 largest customers were about 26% of revenue; none reached 10%.
Services and software
Not separately disclosed
Typical term: Planned inspection, maintenance, and repair; SaaS for access control and workforce management
Through Stanley Access Technologies, Interflex, Zentra, and others.
Source: Form 10-K (FY2025) — Item 1
08
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Business partnership
Airbnb
Schlage, in collaboration with Airbnb, launched the 'airkey' integration connecting Schlage smart locks with Airbnb accounts for guest check-ins.
Business partnership
Apple and Google (wallet credentials)
Schlage's Resident Key mobile credential for multifamily properties was first to market in Apple Wallet and among the first in Google Wallet.
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Mostly distributors, wholesalers, home improvement retailers, and e-commerce platforms, plus some direct end-users through Stanley Access Technologies and Interflex.
Named by the company
No customer is named.
What the filings disclose
- The 10 largest customers represented about 26% of 2025 revenue; none reached 10%. (Form 10-K (FY2025), Item 1)
Suppliers
Metals and electronic components for manufacturing; the 10-K excerpts reviewed don't name suppliers.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- Allegion relies on global manufacturing operations and its supply chain to deliver custom-configured products quickly. (Form 10-K (FY2025), Item 1)
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Allegion's 10-K calls the security products market highly competitive and fragmented, with large multinationals and thousands of smaller regional and local firms, and names its principal global competitors.
Competitors named in the 10-K
North American residential
- Fortune Brands Innovationssite ↗
Plus private label brands, and more specialized competitors in technology-driven categories.
Peer group the company chose
Compensation Benchmarking Peer Group (2025), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Companies similar in size, industry, lifecycle stage, and global presence, with executives of comparable scope. For 2025, Masonite and National Instruments (acquired) were removed and Generac was added.
- Acuitysite ↗
- Generacsite ↗
- Mascosite ↗
- SPX Technologiessite ↗
- A. O. Smithsite ↗
- Gracosite ↗
- nVent Electricsite ↗
- Trimblesite ↗
- Beldensite ↗
- Hubbellsite ↗
- Owens Corningsite ↗
- Watts Water Technologiessite ↗
- Carlisle Companiessite ↗
- Keysight Technologiessite ↗
- Resideo Technologiessite ↗
- Zebra Technologiessite ↗
- Fortivesite ↗
- Lennox Internationalsite ↗
- Rockwell Automationsite ↗
- Fortune Brands Innovationssite ↗
- Littelfusesite ↗
- Sensata Technologiessite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Allegion buys businesses to expand its mechanical and electronic product portfolios and add software and services.
Cash spent on acquisitions, FY2021–FY2025: $1.69B
Jul 2025
ELATEC (Germany)
€327.9M (about $386.5M)
Older deal, core to today's businessA manufacturer of security and access technology, including RFID readers.
- Stated purpose (company)
- To expand Allegion's global electronics portfolio in attractive end markets and increase strategic relationships with channel partners.
Feb–Aug 2025
Next Door, Lemaar, Trimco, Novas, Gatewise, Waitwhile, UAP, Brisant
Part of about $631.6M total for 2025 acquisitions
Security hardware makers in the U.S., Australia, and U.K.; Gatewise (multifamily smart access) and Waitwhile (scheduling SaaS).
- Stated purpose (company)
- The 10-K says the acquisitions align with Allegion's strategy of expanding its mechanical and electronic portfolios and adding software and services.
2013 (spin-off)
Separation from Ingersoll Rand
Spin-off
Allegion was formed to hold Ingersoll Rand's commercial and residential security businesses.
- Stated purpose (company)
- Became a stand-alone public company on December 1, 2013.
Businesses acquired in 2025 contributed $93.0M of revenue in 2025.
12
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 2,867 | 3,272 | 3,651 | 3,772 | 4,067 |
| Operating income | 530 | 586 | 708 | 781 | 860 |
| Pretax income | 524 | 515 | 617 | 699 | 768 |
| Net income (attributable) | 483 | 458 | 540 | 598 | 644 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 14.1% | 11.6% | 3.3% | 7.8% |
| Operating margincalcoperating income ÷ revenue × 100 | 18.5% | 17.9% | 19.4% | 20.7% | 21.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 16.8% | 14.0% | 14.8% | 15.8% | 15.8% |
| Balance sheet ($M) | |||||
| Total assets | 3,051 | 3,991 | 4,312 | 4,488 | 5,224 |
| Total equity | 762 | 945 | 1,318 | 1,501 | 2,068 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 1,442 | 2,095 | 2,015 | 2,000 | 1,980 |
| Equity ratio | 24.9% | 23.6% | 30.6% | 33.4% | 39.6% |
| ROE | 63.6% | 53.9% | 47.8% | 42.4% | 36.1% |
| Cash flow ($M) | |||||
| Operating CF | 489 | 460 | 601 | 675 | 784 |
| Investing CF | -32 | -994 | -129 | -228 | -685 |
| Financing CF | -529 | 437 | -299 | -394 | -267 |
| Free cash flowcalccash flow from operations − capital expenditures | 443 | 396 | 516 | 583 | 686 |
| Cash and equivalents | 398 | 288 | 468 | 504 | 356 |
| Per share & other | |||||
| EPS ($) | 5.34 | 5.19 | 6.12 | 6.82 | 7.44 |
| BVPS ($) | 8.61 | 10.72 | 15.07 | 17.40 | 24.02 |
| Dividend per share ($) | 1.44 | 1.64 | 1.80 | 1.92 | 2.04 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 27.0% | 31.6% | 29.4% | 28.2% | 27.4% |
| P/E (x) | 24.8 | 20.3 | 20.7 | 19.2 | 21.4 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 21.4 | 16.3 | 15.6 | 14.4 | 15.6 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 15.39 | 9.82 | 8.41 | 7.51 | 6.63 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
13
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
18.0%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$860M × (1 − 21%) ÷ $3,774M × 100 = 18.0%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
7.32%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $13.78B ÷ ($13.78B + $1.98B) = 87.4%
e.g.Debt weight: $1.98B ÷ ($13.78B + $1.98B) = 12.6%
e.g.WACC: 7.8% × 87.4% + 5.1% × (1 − 21%) × 12.6% = 7.32%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 7.32% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.69 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 7.79%
- Cost of debt
- 5.10%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 87% : 13%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 7.32%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.69 (price-derived adjusted beta. Raw β 0.54, R² 0.10, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.536 + 0.33 = 0.689
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.69 × 5.5% = 7.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
14
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
2.9%
Perpetual FCF growth: g = r − FCF ÷ EV = 7.3% − 4.5%
Past FCF growth (FY2021–FY2025)
+11.5%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+9.1%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $686M (operating CF − capex); enterprise value $15.4B = market cap $13.78B + debt $1.98B − cash and short-term investments $356M; r = WACC of 7.3% using this page’s default assumptions (β 0.69, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$15.58B
FCF $686M ÷ (7.3% − 2.9%)
Theoretical ÷ actual enterprise value
1.01x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 5.3% | 6.3% | 7.3% | 8.3% | 9.3% |
|---|---|---|---|---|---|
| 0% | 0.84x | 0.71x | 0.61x | 0.54x | 0.48x |
| 2% | 1.35x | 1.04x | 0.84x | 0.71x | 0.61x |
| 4% | 3.42x | 1.94x | 1.35x | 1.04x | 0.84x |
| 6% | — | 14.84x | 3.42x | 1.94x | 1.35x |
| 8% | — | — | — | 14.84x | 3.42x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
15
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.09x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.9%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 112%
Most profit comes from core operations.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$784M ÷ $644M = 1.22x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$860M ÷ $768M × 100 = 112%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
16
Strengths & weaknesses
Strengths
1. Category-defining brands
Brands that invented their categories — Von Duprin (first exit device patent), Schlage (cylindrical lock), LCN (first door closer) — with more than 40 brands overall.
Evidence: Form 10-K (FY2025) Item 1
2. High Americas margins
Allegion Americas earned a 27.9% segment operating margin in 2025, up from 27.1%, on pricing, volume, and productivity.
Evidence: Form 10-K (FY2025) MD&A
3. Specification expertise
Specification writers work with architects, engineers, and consultants to design door openings and security systems that meet functional, aesthetic, and regulatory requirements.
Evidence: Form 10-K (FY2025) Item 1
4. Steady earnings and dividend growth
Revenue rose every year from $2.87B (FY2021) to $4.07B (FY2025), and dividends per share from $1.44 to $2.04.
Evidence: SEC EDGAR XBRL
Weaknesses
1. Low international margins
Allegion International's segment operating margin was 9.0% in 2025, far below the Americas' 27.9%.
Evidence: Form 10-K (FY2025) MD&A
2. Residential softness
Excluding acquisitions, residential revenue fell by a low-single-digit percent in 2025 on lower volumes.
Evidence: Form 10-K (FY2025) MD&A
3. Leverage and thin equity
About $2.0B of debt against $2.1B of equity at year-end 2025; equity was only $0.76B in FY2021, which makes ROE look very high.
Evidence: SEC EDGAR XBRL
17
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
21.4x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.28%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
27%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
5.0%
(Operating CF − capex) ÷ market cap
1. Steady compounder
Revenue and operating income rose every year from FY2021 to FY2025, diluted EPS rose from $5.34 to $7.44 (with a dip in FY2022), and dividends per share rose every year.
- What has to hold
- Pricing power and non-residential demand hold.
- The other side
- Growth in 2025 relied partly on acquisitions, and residential demand is weakening.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A
2. Electronic security growth
Americas electronic product revenue grew by a low-double-digit percent in 2025, and 2025 acquisitions add electronics and software.
- What has to hold
- Buildings keep adopting electronic and mobile access.
- The other side
- The 10-K expects more specialized competitors as products become more technological.
Evidence: Form 10-K (FY2025) MD&A and Item 1
P/E, dividend yield, and payout ratio use the FY2025 year-end share price.
18
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
100x+
$356M vs. $200,000
Interest coverage (operating income ÷ interest expense)
8.5x
$860M vs. $101M
Free cash flow ÷ dividends paid
3.9x
$686M vs. $175M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Life-safety products
Exit devices and door controls are life-safety products generally installed on fire doors and facility entrances and exits, and door openings must meet building and safety codes.
Source: Form 10-K (FY2025), Item 1
Diversified customers
No customer was 10% of revenue; the top 10 were about 26%.
Source: Form 10-K (FY2025), Item 1
Consistent cash flow
Operating cash flow rose from $489M (FY2021) to $784M (FY2025).
Source: SEC EDGAR XBRL
Leverage
About $2.0B of debt, used partly to fund acquisitions such as ELATEC through the revolving facility.
Source: Form 10-K (FY2025), Note on acquisitions; SEC EDGAR XBRL
19
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Competition & technology shift
Competition and new technology
- Company disclosure (summarized from the 10-K)
- Principal global competitors are ASSA ABLOY and dormakaba; Fortune Brands competes in North American residential, and more specialized competitors appear as products become electronic.
- Company’s stated mitigation
- Brand breadth, innovation, integrations with technology platforms, and channel partnerships.
- This site’s assessment
- Impact Med / Likelihood Med
- 2Demand & macro
Construction cycles
- Company disclosure (summarized from the 10-K)
- Demand depends on institutional, commercial, and residential construction and remodeling.
- Company’s stated mitigation
- Exposure to remodeling as well as new construction, across institutional, commercial, and residential markets.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Governance & quality
Integrating many acquisitions
- Company disclosure (summarized from the 10-K)
- Nine acquisitions in 2025 for about $632M, including ELATEC for about $387M, must be integrated.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Med / Likelihood Med
- 4FX & interest rates
Currency
- Company disclosure (summarized from the 10-K)
- Unfavorable exchange rates partly offset 2025 revenue growth, and International results depend on European and Australian currencies.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Low / Likelihood Med
20
What to watch going forward
- Growth in electronic products, which management tracks closely.
- Whether International margins improve as acquisitions are integrated.
- Residential demand.
- Pace of further acquisitions.
21
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:28 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Allegion plc’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.