AllegionALLE -0.31%89 ROC (Joel Greenblatt) % is 103.43% as of Mar. 2026, which is 20% below its 10-year median of 129.85. GuruFocus rates ALLE with a GF Score™ of 89/100 and a GF Value™ of $152.78 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,079 Business Services companies, Allegion ranks better than 82.85% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Allegion's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 103.43%.
The historical rank and industry rank for Allegion's ROC (Joel Greenblatt) % or its related term are showing as below:
ALLE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 100.03 Med: 129.85 Max: 143.89
Current: 116.33
During the past 13 years, Allegion's highest ROC (Joel Greenblatt) % was 143.89%. The lowest was 100.03%. And the median was 129.85%.
ALLE's ROC (Joel Greenblatt) % is ranked better than 82.85% of 1079
companies
in the Business Services industry
Industry Median: 20.89
vs ALLE: 116.33
Allegion's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 3.80% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Allegion's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALLE vs MSA, ADT, BRC: ROC (Joel Greenblatt) % Comparison
For the Security & Protection Services subindustry, Allegion's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allegion ROC (Joel Greenblatt) % vs Business Services Industry
For the Business Services industry and Industrials sector, Allegion's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Allegion's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a ROC (Joel Greenblatt) % of 103.43% mean?
Allegion (ALLE) has a ROC (Joel Greenblatt) % of 103.43% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Allegion and its competitors. This is 20% below median its historical median of 129.85. Over the past decade, Allegion's ROC (Joel Greenblatt) % has ranged from 100.03 to 143.89. According to the industry distribution chart, Allegion ranks #185 out of 1079 companies in the Business Services industry, placing it in the top 17.1%.
Is Allegion's ROC (Joel Greenblatt) % too high?
Allegion's current ROC (Joel Greenblatt) % of 103.43% is 20% below median its 10-year median of 129.85. Over the past 10 years, this metric has ranged from a low of 100.03 to a high of 143.89. The Business Services industry median ROC (Joel Greenblatt) % is 20.89. Allegion's value of 103.43% is 395.1% above this industry median. Based on the distribution chart, Allegion ranks #185 out of 1079 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Allegion has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allegion's ROC (Joel Greenblatt) % compare to MSA and ADT?
According to the Business Services industry distribution chart, Allegion ranks #185 out of 1079 companies for ROC (Joel Greenblatt) %. This places Allegion in the top 17% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 20.89. Allegion's value of 103.43% is 395.1% above this benchmark. Historically, Allegion's own ROC (Joel Greenblatt) % has ranged from 100.03 to 143.89 over the past decade. While the company's 10-year median is 129.85 vs. the industry median of 20.89, Allegion has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Business Services company?
The median ROC (Joel Greenblatt) % among Business Services companies is 20.89, based on 1,079 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allegion's current ROC (Joel Greenblatt) % of 103.43% is 395.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Allegion and its competitors. For the Business Services industry, the median ROC (Joel Greenblatt) % is 20.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegion's current ROC (Joel Greenblatt) % is 103.43%, which is 20% below median its own 10-year median of 129.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allegion stock overvalued right now?
Based on GuruFocus' analysis, Allegion (ALLE) is currently considered Fairly Valued. The stock's GF Value™ is $152.78, compared to a current price of $140.14 — trading 8.3% below its estimated fair value. The current ROC (Joel Greenblatt) % is 103.43%, which is 20% below median its 10-year median of 129.85 and 395.1% above the Business Services industry median of 20.89. Allegion's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Allegion (ALLE), the current ROC (Joel Greenblatt) % is 103.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allegion (ALLE) Overvalued in 2026?
Based on GuruFocus' analysis, Allegion stock appears to be undervalued.
The current stock price of $140.14 is trading 8.3% below its estimated GF Value™ of $152.78.
GuruFocus considers Allegion to be Fairly Valued.
Key valuation signals for ALLE:
ROC (Joel Greenblatt) %: 103.43% (20% below median its 10-year median of 129.85)
GF Value™: $152.78 vs. price of $140.14 (8.3% below fair value)
Industry Position: 395.1% above the Business Services median (#185 of 1079)
No single metric tells the full story. See the ALLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allegion is a global security products company with a portfolio of leading brands such as Schlage, Von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2024, Allegion generated over 75% of sales in the United States. The company primarily competes with Sweden-based Assa Abloy, Switzerland-based Dormakaba, and US-based Fortune Brands Innovations.
89GF Score
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