The underlying tendency is to the upside for shares in Allegion plc and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The company returns high margins, thereby supporting business profitability.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● With an enterprise value anticipated at 4.59 times the sales for the current fiscal year, the company turns out to be overvalued.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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Allegion plc specializes in manufacturing and marketing security systems. Products are sold under the Cisa, Interflex, LCN, Schlage, Von Duprin, Aptiq, Bocom, Briton, Bricard, Dexter, Falcon, Glynn-Johnson, Ito Kilit, Ives, Kryptonite, Legge, Normbau, Steelcraft and Xceedid brands. The group's activity is organized around 3 areas:
- company securities: manufacturing of door frames and accessories, identification systems, access control, door locking, etc.;
- building security: manufacturing of mechanical and electronic locks and portable locking systems;
- city security: manufacturing of vehicles video surveillance, control and detection systems, access control in municipal buildings and in parking garages.
The United States account for 75.5% of net sales.