ALLENEUTRAL

Gross Margin

44.0%

Higher than 80% of Industrials sector peers

Updated 1928h ago

Sector Performance

80th percentile

ALLE

44.0%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

Allegion's gross margin of 44.0% represents the percentage of revenue it keeps after covering the direct costs of producing its security products, a measure of core profitability.

This figure sits well above the sector median of 29.8% for Industrials, placing Allegion in the 76th percentile among its peers, indicating it earns more profit from each sale than most competitors. The metric has been completely stable over the last eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%, showing no movement in either direction. The combination of a high margin and a stable trend implies low operational risk — the company is consistently profitable — but offers no upward catalyst from margin expansion, limiting the opportunity for earnings growth from that source. This stability and above-average level support the overall NEUTRAL verdict, as the metric reflects a solid, steady business without signs of either improvement or deterioration.

Frequently Asked Questions

What does the Gross Margin tell investors about ALLE?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ALLE's Gross Margin compare to its sector?

ALLE's Gross Margin of 44.0% compares to a Industrials sector median of 29.0%, placing it in the 80th percentile.

Who are ALLE's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), AAL (26.0%), CARR (23.3%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.