$143.77
arrow_drop_up0.24%Is ALLE a Buy or Sell based on AI Analysis?
Fundamental Analysis
Allegion PLC has a strong financial profile as indicated by its low debt-to-equity ratio of 1.64 and solid return on equity of 47.78%. The company also boasts a healthy operating margin of 19.81% and a robust net margin of 14.8%. Additionally, Allegion has consistently grown its revenue by 11.58% and its net income by 17.96% year-over-year. This demonstrates the company's ability to effectively manage its operations and generate profits. Furthermore, Allegion PLC has a stable dividend yield of 1.51% and a payout ratio of 26.29%. The company's strong free cash flow margin of 14.14% and free cash flow to assets ratio of 0.12 also highlight its ability to generate cash and reinvest in its business for future growth. Overall, Allegion's solid financial performance and prudent financial management are key indicators of its resilience and sustainability in the market.
Positive Development
Allegion PLC has been consistently outperforming the market, indicating strong investor sentiment and a good business performance. The company has recently announced an increase in its dividend, indicating a strong financial position and confidence in its future prospects. Allegion PLC has also made strategic acquisitions, which can potentially enhance its product offerings and market share.
Negative Development
Despite the positive news, the company's stock price has been fluctuating, indicating market volatility and potential risks. The company's net margin is only 0.1322, indicating a low profit margin. The company's long-term debt is high compared to its total assets, indicating a high debt-to-equity ratio.
Technical Analysis
Allegion PLC has a neutral technical rating, with one technical buy indicator (ATR), five technical hold indicators (RSI, MACD, ADX, WILLR, and ROC), and two technical sell indicators (CCI and STOCHRSI) for the month. The stock currently has a score of 65 in the market, indicating a moderate performance. The stock sector is categorized under Industrials, with a 28.55% change over the past year. The company's stock market change over the last year stands at 23.72%, showing a positive trend in the market. In terms of technical analysis, Allegion PLC's stock has a beta of 1.15, indicating a slightly higher risk factor than the market average. The stock's 52-week high is at $136.91, while the 52-week low is at $95.94. The current price is at $128.79, with a seven-day price change percent of 0.08%. The stock has a trailing PE ratio of 20.72 and a dividend yield of 1.51%, reflecting a stable financial position with room for potential growth. Overall, the technical indicators suggest a balanced performance for Allegion PLC in the market.
Conclusion and recommendation
Based on the data provided for Allegion PLC, the company appears to be in a stable position with a neutral technical rating. With a market cap of $11.28B and a strong return on equity of 47.78%, Allegion PLC has shown consistent growth over the years. The company also boasts a healthy dividend yield of 1.51%, indicating strong financial performance and potential for shareholder returns. Additionally, Allegion PLC has a positive trend in revenue growth, with a 11.58% increase, and a solid net margin of 14.8%, showcasing efficient management of its assets. In conclusion, Allegion PLC presents a promising investment opportunity for those looking for a stable and potentially high-return stock. With a current price showing a discount from its all-time peak, the company could be considered undervalued. The strong financial performance metrics, such as return on equity and revenue growth, along with the consistent dividend payouts, make Allegion PLC a solid choice for investors seeking long-term growth potential. It is advisable for investors to conduct further research and analysis to fully understand the company's positioning in the market before making any investment decisions.