| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 51 | 20.1x | 17.8x | Around median | |
Growth | 55 | 10.6% | 7.1% | Around median | |
Quality | 84 | 18.2% | 4.5% | Top tier | |
Safety | 71 | 1.9x | 2.6x | Top tier | |
Capital Return | 50 | 1.38% | 2.12% | Around median | |
Momentum | 50 | -0.7% | 2.9% | Around median | |
Sentiment | 80 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Allegion plc operates in building access and security solutions, generating revenue from locks, readers, specialty doors, and electronic and mechanical credential systems. The company serves institutional, commercial, and residential markets, including education, healthcare, offices, multifamily housing, and data centers. It also benefits from hardware upgrades and subsequent maintenance and replacement demand after expanding its installed base. In the residential business, about 70% of business comes from the aftermarket versus about 30% from new construction, while electronics are driving the shift from keys and plastic cards to mobile and contactless credentials.
In Q2 FY2026, Allegion recorded revenue of approximately $1.2 billion, up 12.7% year over year, while organic growth was 6.9%. According to EDGAR filings, gross profit was $517.5 million, representing a gross margin of approximately 43.1%, while net income reached $184.6 million and earnings per share were $2.15. On an adjusted basis, operating margin was 24.2%, up 50 basis points, and adjusted earnings per share were $2.40, up 17.6% year over year.
The Americas were the primary driver of results; the segment generated revenue of $918.6 million, representing approximately 80% of the two segments' total revenue, with organic growth of 8.9% and adjusted operating income of $276.4 million. By contrast, International segment revenue was $232.9 million, but declined 1.2% organically despite reported growth of 16.2% supported by acquisitions and currency, and the segment recorded adjusted operating income of $28.8 million, with its margin declining 70 basis points. On a trailing twelve-month basis ending in FY2026, revenue was $4.3 billion, net income was $658.6 million, and earnings per share were approximately $7.66.
Analyst consensus on ALLE stock is Neutral, with an average price target of $156 and a range between $142 and $170, compared with a 52-week range between $125 and $183.11. The average target and the highest target are below the 52-week range high, reflecting a more conservative valuation than the peak levels reached by the stock, despite the increased FY2026 outlook. Earnings growth and Americas margins support the positive side of the valuation, while weakness in Germany, the decline in International segment margin, and the wide range of targets justify maintaining a Neutral view.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue increased 12.7% to approximately $1.2 billion, while organic growth was 6.9%, supported by price and volume. The Americas segment led performance with organic growth of 8.9%, including high-single-digit growth in both residential and non-residential businesses. Adjusted operating margin was 24.2%, up 50 basis points, and adjusted earnings per share increased 17.6% to $2.40. According to EDGAR, net income was $184.6 million and earnings per share were $2.15.
Management raised its reported revenue growth outlook to 7.5%–8.5% and raised the organic growth range to 3.5%–4.5%. It also raised its adjusted earnings per share outlook to $8.85–$9.00, consistent with high-single-digit to low-double-digit year-over-year growth. The outlook assumes 85.9 million shares and does not include benefits from additional share repurchases. By contrast, the company expects a low-single-digit organic decline in the International segment because of weakness in Europe, particularly Germany.
Universities are replacing plastic cards and mechanical keys with mobile and contactless credentials managed by Allegion, requiring upgrades to locks and readers. Two deployments at major universities turned thousands of upgrades and credential standardization into multimillion-dollar opportunities. Americas segment electronics revenue increased by a low-teens percentage in Q2 FY2026 and by a high-single-digit percentage year to date. Use also extends to off-campus student housing and property managers, expanding the hardware base that can generate subsequent demand.
Automated analysis for informational purposes only — not investment advice.
Data centers are approaching 5% of Allegion's non-residential business, according to management's statement on July 23, 2026, but are growing faster than traditional markets. The company becomes involved early in the design phase to define specifications and standards and provide the required products within short lead times. Krieger Specialty Products, which Allegion acquired approximately two years before the Q2 FY2026 call, adds high-tech doors suited to this segment. New facilities may later become a source of aftermarket sales as the installed base expands.
Pressure is concentrated in Europe, particularly Germany, which management described as Allegion's largest international market, amid reduced economic growth expectations and weak demand. International revenue declined 1.2% organically in Q2 FY2026, and adjusted margin declined 70 basis points year over year. At the same time, the company improved margin by 440 basis points sequentially following enterprise resource planning system disruptions in Q1. It expects a $10 million annual benefit from cost and restructuring actions, reaching the full run rate in Q4 FY2026.
Available cash flow year to date in FY2026 was approximately $260.8 million, down 5.3% because of the timing of sales and higher customer receivable balances at quarter-end. Management still expects available cash flow conversion equal to 85%–95% of adjusted net income during FY2026. Net debt was 1.6 times earnings before interest, taxes, depreciation, and amortization. In Q2, the company repurchased $120 million of shares and paid $47 million in dividends, and completed no acquisitions after spending $70 million on acquisitions in Q1.
