Allegion plc — Earnings Quality Grade F
ALLE · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 39 days, change -1 days YoY
AR growth 4.5% vs revenue growth 7.8%
Revenue 7.8%, CFFO 16.1%. Cash follows revenue
Expense Quality
Inventory growth 22.7% exceeds COGS 6.0%
CapEx growth 6.5% vs revenue 7.8%. Normal
SG&A/Gross Profit = 53.2%. Normal
Gross margin 45.2%, change +1.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.22. Profits backed by cash
FCF $0.7B, FCF/NI = 1.07
Accruals ratio = -2.7%. Low accruals
Cash $0.4B covers only 18% of debt $2.0B
Balance Sheet Health
Goodwill+Intangibles $2.7B = 132% of equity. Over 50%
Debt/EBITDA = 2.0x. Healthy
Other assets 12.6% vs revenue 7.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 33% YoY
Manipulation Score
M-Score = -2.50 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09