ALLE Stock Analysis — Allegion
Sector: Industrials
AI Verdict
Allegion trades at 14.1x next year's earnings with 35.2% growth expected—cheap for the growth on offer if its lock-in with contractors and property managers keeps competitors at bay.
Competitive Moat
Allegion specializes in mechanical and electronic security products for commercial and residential buildings, including brands like Schlage. Its moat comes from entrenched distribution relationships with contractors and property managers, plus high switching costs due to standardized lock systems across large facilities.
Summary
Allegion is notable for a 14.1x forward P/E and a consensus 35.2% jump in earnings expected next year.
Where It Stands
Shares are down -5.83% over the past year with an RSI of 60.3 (neutral), and the stock trades at 14.1x forward earnings versus a 20x sector median for industrials.
Key Metrics
- RSI: 60.3 — Near Overbought
- Trailing P/E: 19.1x
- Forward P/E: 14.1x
- PEG Ratio: 0.53
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Market Cap: $12.0B
- Dividend Yield: 0.02%
- 1-Year Return: -5.83%
- 52-Week High: $183.11
- 52-Week Low: $125.00
Analyst Consensus
11 Buy · 7 Hold · 0 Sell (18 analysts)
Bull Case
With forward EPS growth at 35.2% and a forward P/E of just 14.1x, you're paying a low price for substantial expected profit acceleration.
Bear Case
If the P/E reverts to the sector median of 20x after a 1-year return of -5.83%, the stock could see a sharp rerating if growth disappoints and the RSI at 60.3 signals no obvious oversold entry.
Catalyst to Watch
Watch for quarterly earnings to confirm whether Allegion actually delivers on the 35.2% EPS growth forecast.