Is ALLE (Allegion plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ALLE is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (19.24% vs ≤33% threshold), interest income ratio (0.30% vs ≤5% threshold), and cash & securities ratio (3.01% vs ≤33% threshold).

Allegion plc is a global manufacturer specializing in mechanical and electronic security products and solutions. The company produces essential security infrastructure, including door closers, locks, electronic access control systems, and workforce productivity solutions for commercial, institutional, and residential facilities. For Muslim investors, Allegion represents a solid shariah-compliant opportunity within the industrials sector. The stock successfully passes all four AAOIFI screening criteria, meaning both its core business activities and its financial structures align with Islamic finance principles. Financially, Allegion demonstrates strong compliance with conservative metrics. The company carries a Debt to Market Cap ratio of just 19.2% and a Cash to Market Cap ratio of 3.0%, both sitting comfortably below the strict 33% AAOIFI threshold. Furthermore, its interest income accounts for a mere 0.30% of total revenue, indicating minimal reliance on impermissible financial activities. Since Allegion operates in the straightforward security and manufacturing industry, there is no significant scholarly debate regarding its business model. However, halal investors should periodically monitor its debt levels and interest income during future earnings reports to ensure ongoing compliance. Allegion plc operates in the Industrials sector under the Security & Protection Services industry and is headquartered in Dublin, IE. The company is led by CEO John H. Stone and employs approximately 14,400 people.

ALLE was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ALLE passed 4 of these 4 screens.

Although ALLE passes all shariah screens, it does earn $12.0M in interest income (0.30% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.30 to purify the income.

ALLE was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.