Allegion plc (NYSE:ALLE) is a leading global provider of security products and solutions. The company is known for its innovative approach to safety and security, offering a wide range of products that cater to both residential and commercial markets. Allegion operates within the Zacks Security and Safety Services industry, competing with other major players in the sector.
On February 18, 2025, Allegion reported earnings per share (EPS) of $1.64, which fell short of the estimated $1.75. Despite this, the company has a history of outperforming expectations. Allegion's revenue for the quarter ending December 2024 was $945.6 million, exceeding the estimated $938.9 million. This represents a 0.68% increase over the Zacks Consensus Estimate and a significant rise from the $897.4 million reported in the same period the previous year. The company has consistently surpassed consensus revenue estimates in three of the last four quarters, demonstrating its robust revenue-generating capabilities.
The company's financial metrics provide further insight into its market valuation. Allegion's price-to-earnings (P/E) ratio is approximately 18.58, indicating how the market values its earnings. The price-to-sales ratio stands at about 2.93, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 3.33, suggesting the market's valuation of the company relative to its sales, including debt and excluding cash.
Allegion's financial health is further supported by its debt-to-equity ratio of approximately 1.10, indicating a balanced approach to financial leverage. The company maintains a current ratio of about 2.04, showcasing its ability to cover short-term liabilities with short-term assets. With an earnings yield of about 5.38%, Allegion offers a return on investment based on its earnings, highlighting its potential as a solid investment opportunity.
