F

Allegion plc — Earnings Quality Grade F

ALLE · Industrials

Major red flags

Revenue
$4.1B
2025
Net Income
$644M
2025
Gross Margin
45.2%
Free Cash Flow
$686M
01

Screening Summary

13
Passed
2
Watch
2
Failed
-2.5
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 39 days, change -1 days YoY

A2AR vs Revenue Growth

AR growth 4.5% vs revenue growth 7.8%

A3Revenue vs CFFO

Revenue 7.8%, CFFO 16.1%. Cash follows revenue

02

Expense Quality

!
B1Inventory vs COGS

Inventory growth 22.7% exceeds COGS 6.0%

B2CapEx vs Revenue

CapEx growth 6.5% vs revenue 7.8%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 53.2%. Normal

B4Gross Margin

Gross margin 45.2%, change +1.0pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.22. Profits backed by cash

C2Free Cash Flow

FCF $0.7B, FCF/NI = 1.07

C3Accruals Ratio

Accruals ratio = -2.7%. Low accruals

C4Cash vs Debt

Cash $0.4B covers only 18% of debt $2.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $2.7B = 132% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.0x. Healthy

D3Soft Asset Growth

Other assets 12.6% vs revenue 7.8%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 33% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.50 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.5
-4.0 Clean-2.22 Grey-1.78 Danger0
0.969
DSRI
AR growing faster than revenue?
0.979
GMI
Gross margin declining?
1.086
AQI
Asset quality deteriorating?
1.078
SGI
Revenue growth rate
1.024
DEPI
Depreciation slowing?
1.023
SGAI
SG&A ratio changing?
-0.0268
TATA
Accruals level
0.879
LVGI
Leverage increasing?
05

Altman Z-Score

4
Safe Zone
0 Distress1.102.605.0+ Safe
0.1218
Liquidity
0.4285
Cumulative profit
0.1664
Operating efficiency
0.6551
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25

Latest Quarterly Check

About this →

Across the last 5–6 quarters, ALLE tripped 1 red flag.

  • Q5 · Inv > RevInv YoY +21.1% vs Rev YoY +9.7%

Updated 2026-05-19