ALLENEUTRAL

ALLE Gross Margin Analysis

44.0%

Higher than 78% of Industrials sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

78th percentile

ALLE

44.0%

Sector Median

28.9%

Sector Avg

846.3%

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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 28.9%, placing it in the 78th percentile.

Who are ALLE's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (29.6%), BLDR (28.1%), SAVE (31.3%), AAL (26.0%), JOBY (22.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.