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This post is about three locks and other access products manufacturers. You can read my [initial post from june 2025](https://www.reddit.com/r/ValueInvesting/comments/1l8cw4t/allegion_what_am_i_missing_alle_assab_doka/) and my [Q3 update](https://www.reddit.com/r/ValueInvesting/comments/1oeftus/allegion_alle_vs_assa_abloy_assab_q3_update/) (only ALLE & ASSA-B)
# Allegion (ALLE)
Allegion is a lock, (automatic) door and anti-fire window manufacturer. It also made investments in various technology start-ups (Allegion Ventures). It is a spin-off from Ingersoll Rand (the old one) in 2014. It has a high profitability and is a serial acquirer.
**Asset allocation**
It makes a good number of acquisitions, but also some divestments from time to time. If you look at the constant high profitability (10%-17% since 2016), we can say it is selective with its acquisitions. They continue to make a lot of money on their total assets. Notable acquisition : Stanley access technologies in 2022 from Stanley Black & Decker, that is their entry in the automatic door market.
They normally use a high leverage (equity ratio of about 30%, ***recently closer to 40%***), they distribute about 30% of their earnings and are doing a lot of buyback (37% of earnings for \~1.2% of outstanding shares (net of dillution) in average) at attractive prices (at the moment at least).
In 2025 they bought :
\* Waitwhile (queue managing software)
\* Gatewise (access control software for multi-family buildings)
\* Next door (US glass/metal and metal doors manufacturer for commercial buildings)
\* Trimco (manufacturer of custom/branded door handles)
\* Lemaar (residential door handles in Australia)
\* Novas (door handles, electronic locks, door sealing in Australia)
\* ELATEC (electronic locks in Germany)
\* UAP (8.2025, electronic and mechanical locks in the UK)
\* Brisant (8.2025, locks, fire door closing systems etc. in the UK)
**Evolution of earnings (USD)**
2.36 (16), 2.85 (17), 4.54 (18), 4.26 (19), 3.39 (20), 5.34 (21), 5.19 (22), 6.12 (23), 6.82 (24), ***7.44 (25)***
Dividend went from 0.64 to ***2.20***. The dividends are subject to irish witholding tax.
**Management & board**
There is a good stability in the management, eventhough CEO John Stone has been hired in 2022 and they hired a new general counsel in 2025.
For example SVP International Timothy Eckersley was managing the american commercial activities of what was to become Allegion in 2007-2013, then the Americas division (this time including residential as well) in 2013-2020 before leading the international business from 2021. SVP Americas David Llardi joined the group in 2008 and was promoted in 2022.
It is less the case on the board with some recent departures of long-time members.
**Other**
There is some risks about the tariffs, considering for example that some of the manufacturing for the american market is done in Mexico.
# Assa Abloy
Assa Abloy is a lock, window elements, (automatic) door and gate manufacturer. It is a merger from 1994 between Assa and Abloy. It has an average profitability. It is 3 times bigger than Allegion.
**Asset allocation**
It makes a good number of acquisitions. If you look at the lower profitability (9%-11.5%, except for 2018), we can say it is less selective with its acquisitions than Allegion. Notable acquisitions : HHI (Kwikset, Baldwin & Weiser etc.) for 4.3B$ in 2023, that is most of their North American residential business segment. The group has a bigger diversification in term of businesses (senior care alarms, RFID for uniforms, perimeter security etc).
They use a lower leverage (equity ratio of about 50%), they distribute about 45% of their earnings. They don't really buy back their shares.
They recently bought :
\* Vizzia Technologies (7.2025, US)
\* Calmell (7.2025, Spain)
\* SiteOwl (8.2025, US)
\* Kentix (10.2025, Germany)
\* IDmelon (10.2025, Canada)
\* MPI (10.2025, US)
\* International Door Products (11.2025, US)
\* Sargent & Greenleaf (12.2025, US)
**Evolution of earnings (SEK)**
5.99 (16), 7.77 (17), 2.48 (18\*), 9.22 (19), 7.54 (20), 9.81 (21), 11.97 (22), 13.54 (23), 14.09 (24), ***13.23 (25)***
\*goodwill impairement China
Dividend went from 3 to ***6.4***. The dividends are subject to swedish witholding tax.
**Management & Board**
There is a good stability in term of management. CEO Nico Delvaux has been hired in his position in 2018.
There is always 3-4 members of the board sent by major shareholders Latour and Schörling
**Other**
There is some risks about the tariffs as they now make 47% of their sales in the US.
The company is controlled by long term shareholders Latour and Schörling.
# Dormakaba
Dormakaba is a lock, door, movable wall, key machine manufacturer. Dormakaba is the result of the 2015 merger between swiss Kaba and german Dorma. The swiss holding (what you buy on the stock market) owns 52.5% of the german holding (who owns all the businesses). The ex-owners of Dorma kept 47.5% of the german holding and of the merged activities. In addition, the ex-owners of Dorma, together with some ex-owners of Kaba own a total of 28% of the swiss holding. It is the smallest company of the 3.
There is not a lot of continuity in term of management. The CEO was hired in january 2024, the COO in august 2024. A person was hired in january 2025 for the newly created position of Chief transformation officer and he is also the president of the key and wall solution division.
The company has very low margins (remember to not exclude earnings of the minority interests to calculate profitability as most of them are the 47.5%). It has made some acquisitions, some of them beeing service companies, but it also made a lot of divestments in recent years.
**Recent transactions :**
\* Aquisition of TANlock (7.25, Germany, for data centers)
\* Sale of a brazilian subsidiary (7.25)
\* Acquisition of a minority stake in RealSense (11.25, US, AI-powered computer vision)
\* Acquisition of MetaMatic (12.25, Germany, installation and modernization of automatic doors)
\* Acquisition of Avant-garde (12.25, US)
\* Aquistion of Vintech (2.26, Australia, for hospitality)
**Evolution of earnings (CHF)**
1.28 (6.16), 2.77 (6.17), 2.95 (6.18), 3.15 (6.19), 2.03 (6.20), 2.41 (6.21), 1.51 (6.22), 1.09 (6.23), 1.0 (6.24), 2.32 (6.25)
Dividend went from 1.2 to 0.92. The dividends are subject to swiss witholding tax (partly).
# Conclusion
For me, Allegion is a buy at the current P/E of 21.86. I don't understand the negative market reaction (-9.38%) after the last results.
I bought my position between the end of may and the end of june 2025. Berkshire Hathaway disclosed a position that they openend in the second quarter of 2025 as well. Berkshire's position was still open at the end of the year. I bought extra shares in november.
Assa Abloy is not a buy at the moment. It is clearly not as good as Allegion and a P/E of 28.43 is too high
Dormakaba is not good enough to by on my actual watchlist. It has a P/E of 26.59. The next report (Q2-26, up to last december) will be published in less than a week.
>Previous conclusion june 2025 : I don't understand why Allegion has a P/E of 19.62 in itself. Assa Abloy, which is not as good, has a P/E of 21.91. Dormakaba, which is the worst, has a P/E of 45.69. Has anybody an idea about what I am missing ? The "negative" elements don't seem to explain why it is cheap. Yes, there is a tariff risk (same as a lot of companies), there is irish witholding tax, I guess it could get out of S&P500 due to its size (#436). The company doesn't have some caracteristics that a lot of investor want (it is an industrial company and it is not a dividend aristrocrat yet).