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Allegion ALLE

Allegion scores good on business quality (6.6 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$150.48Oct 9, 2026
Business qualityGood
Next earningsOct 22, 2026
Insiders, 90 daysBuying

Why it matters

  1. What Allegion does

    Allegion designs, manufactures, and sells mechanical and electronic security products, including door locks, hinges, and access control systems. Commercial and residential property owners pay for these physical security items through a network of distributors and contractors.

  2. What it does best

    Allegion delivers elite pricing power and margin capture through its established mechanical and electronic hardware ecosystem. With a gross margin of 44.8%, it outpaces peers like Trane Technologies at 35.4% and Johnson Controls at 36.7%. This advantage is anchored by trusted brand loyalty and strict architectural specifications that make swapping out its locks costly.

  3. The main risk

    Debt levels pose a meaningful structural vulnerability. Total debt sits at $1.98 billion against cash of $356 million, leaving net debt at $1.62 billion. If commercial real estate demand falters, cash flow generation could struggle to service these obligations comfortably.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin hits 20.8% and return on equity reaches 32.0%, placing profitability in the top decile of the sector at the 80th percentile. Scale efficiencies drive these strong margins.

MoatStrong

Switching costs and brand trust form a strong moat protecting its commercial hardware lines, backed by a gross margin in the top quartile of its sector at the 74th percentile.

GrowthSteady

Revenue growth stands at 7.8% with revenue reaching $4.3B, improving from $4.1B in the previous period. The top-line expansion is supported by steady demand across its security portfolio.

Financial healthFair

Total debt of $2.0B outweighs cash of $356M, leaving net debt at $1.6B. Interest coverage is 8.9x. Free cash flow reached $671M, showing a softer trend compared to prior periods.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 insider bought $27K on the open market. 3 sold $1.3M outside pre-planned sales.

Our sealed record on ALLE

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is ALLE a good business?

Allegion scores good on the Cluenex quality check (6.6 of 10), measured against its own industry. Profitability is strong, moat strong, growth steady and financial health fair.

Are insiders buying ALLE?

In the last 90 days of SEC Form 4 filings: 1 insider bought $27K on the open market. 3 sold $1.3M outside pre-planned sales.

When does ALLE report earnings?

Oct 22, 2026.

For members

See ALLE today

  • Today's verdict on ALLE, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Allegion (ALLE)”, https://cluenex.com/stocks/alle/, data as of Oct 10, 2026.