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Allegion - AI Stock Analysis

Analysis generated September 24, 2024

Allegion plc is a global pioneer in providing security products and solutions for homes and businesses. With a robust portfolio that includes well-known brands such as Schlage, Von Duprin, and Bricard, the company specializes in mechanical and electronic security products and has a significant footprint across more than 130 countries. Allegion's mission is to keep people safe and secure where they live, work, and visit by making the world safer as newer security threats emerge.

Fundamental Analysis

For the latest quarter, Allegion reported a revenue of $966 million, showing an increase of 8.02% compared to the previous quarter. This growth is also reflected year-over-year, with an increase of 5.82%. A rising revenue metric signifies that the company is expanding its operations and likely increasing its market share.

Net income for the last quarter stood at $155 million, marking a substantial increase of 25.53% from the previous quarter and a 9.44% increase year-over-year. This indicates strong operational profitability and effective cost management.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) were reported at $231 million for the last quarter, depicting a robust 20.79% increase from the prior quarter and 14.61% growth year-over-year. EBITDA is a critical measure of cash flow, and such an increase signifies improving operational efficiency and profitability.

The current Price to Earnings (P/E) ratio is 22.32, indicating that the market values Allegion's earnings within a reasonable range. A P/E ratio neither too high nor too low suggests that the stock is fairly priced in relation to its earnings.

Technical Analysis

The current stock price for Allegion is $143.32, which has seen a 4.97% increase in the past month, showing a positive short-term momentum. Over the past year, the stock has appreciated by 39.91%, indicating a strong long-term bullish trend.

Further confirming this positive trend, the Simple Moving Average (SMA) for the last 10 days (SMA10) is 141.92, slightly higher than the previous SMA10 of 141.65. This suggests an upward trend in the stock's movement.

The Relative Strength Index (RSI) is at a neutral 52.3. RSI measures the speed and change of price movements; a value close to 50 indicates neither overbought nor oversold conditions, presenting a balanced market sentiment.

Alternative Data Analysis

Job postings on popular job boards indicate that Allegion has 289 open positions, representing a 10% increase in the past couple of months. More job openings typically signal that the company is gearing up for expansion, which is a positive indicator for future growth.

The business outlook among Allegion employees is reported to be neutral. While not overtly enthusiastic, neutral sentiment can indicate stable job satisfaction levels, reducing the risk of high employee turnover.

In terms of customer acquisition, Allegion has attracted an estimated 400,000 visitors to its webpage, a surge of 48% in the last couple of months. This sharp increase suggests a rising interest in the company's products and services, which can translate to higher customer acquisition and possibly improved revenues.

As for customer engagement, Allegion's Twitter following remains stable at 1,900 with no significant changes, possibly indicating that social media is not a primary channel for customer interaction for Allegion.

According to AltIndex's AI score, which predicts stock prices based on a mix of fundamental, technical, and alternative data, Allegion scores a 76, signaling a 'Buy' recommendation.

Conclusion and Recommendation

Based on the comprehensive analysis, Allegion presents a strong investment opportunity. The company demonstrates solid revenue and income growth, effective cost management, and sustained profitability, as evidenced by rising revenue, net income, and EBITDA figures for the latest quarter. The technical indicators like consistent price appreciation, a bullish SMA10, and a neutral RSI further affirm the stock’s upward momentum.

Moreover, the alternative data suggest that Allegion is not only expanding its workforce but also seeing increased interest in its products, which could boost future growth. Altogether, these positive indicators, coupled with a buy signal from the AltIndex AI score, lead to a 'Buy' recommendation for Allegion stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.