ALLENEUTRAL

Return on Equity (ROE)

31.1%

Higher than 78% of Industrials sector peers

Updated 1928h ago

Sector Performance

78th percentile

ALLE

31.1%

Sector Median

12.6%

Sector Avg

-23.5%

📊

Deep Analysis

Allegion’s Return on Equity (ROE) of 31.1% means the company generated $0.311 in profit for every dollar of shareholders’ equity over the past year — a measure of how efficiently it uses investor capital.

That figure is nearly three times the sector median of 10.8% and places Allegion in the 80th percentile among its Industrials peers, indicating top-quartile profitability. However, the year-over-year change and quarter-over-quarter change are both listed as N/A, and the trend direction for the last eight quarters is also N/A, so no recent trajectory is available from this data. The combination of a very high ROE with no trend history suggests that while the current level signals strong historical capital efficiency, the absence of any direction limits the ability to assess whether performance is improving or weakening — creating uncertainty about future sustainability. This lack of trend information increases risk for investors looking for momentum, though the absolute level alone offers a defensive opportunity if the company can maintain it. The overall NEUTRAL verdict is supported by this metric: the exceptional ROE justifies a positive tilt, but the missing trend data prevents a more confident bullish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ALLE?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ALLE's Return on Equity (ROE) compare to its sector?

ALLE's Return on Equity (ROE) of 31.1% compares to a Industrials sector median of 12.6%, placing it in the 78th percentile.

Who are ALLE's closest peers by Return on Equity (ROE)?

The closest Industrials peers by Return on Equity (ROE) include: PWR (13.5%), RTX (11.6%), AME (13.9%), SAIA (10.2%), CARR (9.9%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

Advertisement

Master ALLE's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full ALLE research report

Free account — no credit card

ALLE

31.1%

Sector Median

12.6%

Sector Avg

-23.5%

How ALLE's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.