Allegion

Methodology

Allegion's commercial and residential security products have revenue tied to construction activity and renovation cycles, creating moderate cyclicality. The mix of mechanical and electronic security with some recurring service revenue provides more stability than pure construction suppliers. This works reasonably though construction cycle timing significantly impacts near-term results.

Methodology

Allegion commands moderate PEG ratios reflecting steady industrial with exposure to new construction and larger renovation/aftermarket. The transition toward electronic access control and smart buildings provides growth beyond traditional locks. Compare to building products and security providers to gauge whether market position and electronic security transition justify multiples.

Methodology

Allegion's dividend provides modest income alongside steady growth, appealing to industrial investors seeking balanced returns. Consistent cash generation from installed base service and aftermarket supports dividends and opportunistic buybacks. PEGY adds useful context as a mature industrial with both growth and income characteristics.