ALLEAllegion

$160.24

Is the business good?

How good a business is ALLE?

Allegion earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

18%

Return on invested capital · cost of capital 9.0% · 8.7 points above what the capital costs: growth creates value

Share count, year on year
−0.12%

Share count, year on year · flat: no meaningful dilution

Operating margin by fiscal year
YearOperating margin
FY202015%
FY202118%
FY202218%
FY202319%
FY202421%
FY202521%
Details
Free cash flow, trailing twelve months
$683M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
18%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.