A high-quality industrial franchise with a 34% return on equity and a Piotroski F-Score of 7 out of 9 is navigating a challenging transition: two consecutive recent earnings misses, modest growth, and a leverage burden have combined to push the stock below its long-term trend line, while improving momentum indicators and meaningful analyst upside suggest the recovery setup is forming but not yet confirmed.
Thesis pillars
- High Quality Financial Profile→Stable
- Soft Growth With Leverage Burden→Stable
- Consecutive Earnings Misses↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Allegion plc (ALLE) Stock Analysis
Industrials · Security & Protection Services
Sell if holding. Analyst target reached at $164.78 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.0): -0.5.
Allegion plc makes security hardware and access control solutions — locks, exit devices, electronic access systems, and door controls — under brands including Schlage, CISA, SimonsVoss, and Von Duprin, serving institutional, commercial, and residential construction markets... Read more
Sell if holding. Analyst target reached at $164.78 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.0): -0.5. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 7/10 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 68d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
About Allegion plc
About Allegion plc
Allegion plc generated $4,067.3 million in net revenues and $859.5 million in operating income in 2025, with roughly 75% of sales originating in the United States and the remaining 25% from international markets. The company operates 37 principal production and assembly facilities — 22 in the Americas and 15 internationally — and employs 13,300 people globally. Among U.S.-based employees, approximately 16% work under collective bargaining agreements with various labor unions.
Allegion sells security and access control hardware through specialty distribution, wholesale, and retail channels including large home improvement centers; the top 10 customers accounted for approximately 26% of 2025 net revenues, with no single customer exceeding 10%. The portfolio spans five product families — door controls and exit devices, doors and glass systems, electronic security and access control, locks and key systems, and services and software — under more than 40 brands including Schlage, CISA, SimonsVoss, LCN, Von Duprin, and Stanley Access Technologies. Raw materials include steel, zinc, brass, and electronic components; the company sources approximately 20-25% of cost of goods sold from Mexico under the IMMEX manufacturing program and less than 5% from China. Principal competitors are Assa Abloy AB and dormakaba Group, with additional competition in the North American residential market from Fortune Brands Innovations.
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The company's Mexico-sourced input exposure creates sensitivity to U.S. trade policy. In 2025, Allegion offset tariff-driven inflation through pricing actions, but the filing cautions that the duration and magnitude of any new or increased tariffs — and retaliatory responses by other countries — may weigh on margins if pricing fails to fully absorb cost increases. The company does not use financial derivatives to hedge commodity price volatility, relying instead on annual price contracts and firm purchase commitments where available.
See also: Industrials · Security & Protection Services
From Allegion plc's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-08-15Recent Developments — Allegion plc
Latest news
- NEWS Is Allegion (ALLE) Undervalued Going Into Earnings? - simplywall.st — simplywall.st positive
- NEWS Rit Capital Partners PLC Purchases New Position in Allegion PLC $ALLE - MarketBeat — MarketBeat positive
- NEWS Is Allegion (ALLE) Undervalued As Earnings Expectations Come Into Focus? - Yahoo Finance — Yahoo Finance positive
- NEWS Earnings To Watch: Allegion (ALLE) Reports Q2 Results Tomorrow - StockStory — StockStory neutral
- NEWS Allegion PLC stock rises Wednesday, still underperforms market - MarketWatch — MarketWatch positive
Generated 2026-08-15T13:12:17Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomertop-10 customers26%10-K Item 1: 'Our 10 largest customers represented approximately 26% of our total Net revenues in 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $164.78 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.0): -0.5. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $156.40. Score 5.6/10, moderate confidence.
Take-profit target: $167.45 (-7.8% upside). Prior stop was $156.40. Stop-loss: $156.40.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.0): -0.5; Consecutive earnings misses (2).
Allegion plc trades at a P/E of 21.8 (forward 16.9). TrendMatrix value score: 5.4/10. Verdict: Sell.
18 analysts cover ALLE with a consensus score of 3.8/5. Average price target: $175.
What does Allegion plc do?Allegion plc makes security hardware and access control solutions — locks, exit devices, electronic access systems, and...
Allegion plc makes security hardware and access control solutions — locks, exit devices, electronic access systems, and door controls — under brands including Schlage, CISA, SimonsVoss, and Von Duprin, serving institutional, commercial, and residential construction markets globally. In 2025, the company generated $4,067.3 million in net revenues across 37 production facilities and roughly 13,300 employees, with Assa Abloy AB and dormakaba Group as principal competitors.