The business behind the dividend
| Measure | ALLE | Median | Formula |
|---|---|---|---|
| Return on equity | 31.1% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 21.2% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $675.40m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $685.70m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 21.1% | 14.3% | Operating income ÷ revenue |
| Net margin | 15.8% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.96x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 8.51x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.84x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 3.11x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.22x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -2.7% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 31.1% | 39.8% | 41.0% | 48.6% | 63.6% | 37.9% | 53.0% | 66.8% | 68.1% | 202.2% | 48.6% |
| Return on capital employed | 21.2% | 22.3% | 21.3% | 19.3% | 24.1% | 17.9% | 25.9% | 25.1% | 26.2% | 27.5% | 22.3% |
| Operating margin | 21.1% | 20.7% | 19.4% | 17.9% | 18.5% | 14.8% | 19.8% | 19.2% | 20.5% | 19.4% | 19.4% |
| Net margin | 15.8% | 15.8% | 14.8% | 14.0% | 16.8% | 11.6% | 14.1% | 15.9% | 11.3% | 10.2% | 14.1% |
| Debt to equity | 0.96x | 1.33x | 1.53x | 2.22x | 1.90x | 1.72x | 1.89x | 2.22x | 3.68x | 12.92x | 1.89x |
| Current ratio | 1.84x | 2.04x | 1.26x | 1.73x | 1.86x | 2.20x | 1.98x | 1.79x | 2.24x | 1.93x | 1.86x |
| Cash conversion | 1.22x | 1.13x | 1.11x | 1.00x | 1.01x | 1.56x | 1.22x | 1.05x | 1.27x | 1.65x | 1.13x |
How it compares in not classified
Among the 8 not classified companies here measured on free cash flow, Allegion pays out less than 5 of them. The median for that group is 35.0%, against this company’s 25.6%.
Closest on free cash flow
- RE/MAX Holdings (RMAX) 1.5%
- ADT (ADT) 10.9%
- AGNT (AGNT) 28.2%
- Marcus & Millichap (MMI) 35.0%
Same sector and same denominator, so the figures are comparable. All 10 in not classified →