Summary: Allegion PLC

No. 1 in its U.S. markets as one of the largest manufacturer of mechanical and electronic security products. This includes door locks and access controls systems, with leading brands such as Schalge, Von Duprin, and LCN; Above average EBITDA margins at about 25% relative to rated peers, and a long history of consistently high margins through various economic cycles; Efficient and global manufacturing footprint with 31 production facilities, propelling operations in 130 countries; Narrow security product focus, primarily concentrated in door locks, frames, closers, and other related products; and Faces stiff competition from other highly rated global competitors Assa Abloy and Stanley Black&Decker. Absent any acquisitions, we expect continued prudent use of leverage, with debt-to-EBITDA in the 2x

...Business Risk: Strong Financial Risk: Intermediate + No. 1 in its U.S. markets as one of the largest manufacturer of mechanical and electronic security products. This includes door locks and access controls systems, with leading brands such as Schalge, Von Duprin, and LCN; + Above average EBITDA margins at about 25% relative to rated peers, and a long history of consistently high margins through various economic cycles; + Efficient and global manufacturing footprint with 31 production facilities, propelling operations in 130 countries; + Narrow security product focus, primarily concentrated in door locks, frames, closers, and other related products; and + Faces stiff competition from other highly rated global competitors Assa Abloy and Stanley Black & Decker. + Absent any acquisitions, we expect continued prudent use of leverage, with debt-to-EBITDA in the 2x to 2.5x range over the next two years; + Significant financial capacity for share repurchases, dividends, and acquisitions at the...

Summary