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NYSE:ALSN is probably undervalued for the fundamentals it is displaying.

By Mill Chart

Last update: Sep 29, 2023

Uncover the hidden value in ALLISON TRANSMISSION HOLDING (NYSE:ALSN) as our stock screening tool recommends it as an undervalued choice. NYSE:ALSN maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Deciphering NYSE:ALSN's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ALSN scores a 9 out of 10:

  • ALSN is valuated reasonably with a Price/Earnings ratio of 8.90.
  • Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 94.57% of the companies are valued more expensively.
  • ALSN is valuated cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
  • ALSN is valuated reasonably with a Price/Forward Earnings ratio of 8.07.
  • Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 93.02% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 18.89, ALSN is valued rather cheaply.
  • ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 83.72% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 91.47% of the companies are valued more expensively.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of ALSN may justify a higher PE ratio.
  • ALSN's earnings are expected to grow with 16.47% in the coming years. This may justify a more expensive valuation.

Exploring NYSE:ALSN's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ALSN, the assigned 8 is noteworthy for profitability:

  • The Return On Assets of ALSN (12.87%) is better than 89.92% of its industry peers.
  • ALSN's Return On Equity of 59.19% is amongst the best of the industry. ALSN outperforms 99.22% of its industry peers.
  • ALSN's Return On Invested Capital of 15.87% is amongst the best of the industry. ALSN outperforms 88.37% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.06%.
  • The 3 year average ROIC (12.92%) for ALSN is below the current ROIC(15.87%), indicating increased profibility in the last year.
  • With an excellent Profit Margin value of 21.17%, ALSN belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
  • With an excellent Operating Margin value of 29.37%, ALSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • ALSN has a better Gross Margin (47.70%) than 93.80% of its industry peers.

How do we evaluate the Health for NYSE:ALSN?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ALSN has received a 5 out of 10:

  • ALSN's Debt to FCF ratio of 4.16 is fine compared to the rest of the industry. ALSN outperforms 68.99% of its industry peers.
  • A Current Ratio of 2.15 indicates that ALSN has no problem at all paying its short term obligations.
  • The Quick ratio of ALSN (1.59) is better than 71.32% of its industry peers.

A Closer Look at Growth for NYSE:ALSN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ALSN scores a 6 out of 10:

  • ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.52%, which is quite impressive.
  • ALSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.97% yearly.
  • The Revenue has grown by 15.67% in the past year. This is quite good.
  • Based on estimates for the next years, ALSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.47% on average per year.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of ALSN for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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ALLISON TRANSMISSION HOLDING

NYSE:ALSN (2/22/2024, 7:27:46 PM)

After market: 73.39 0 (0%)

73.39

+2.51 (+3.54%)

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News Image16 days ago - ChartmillNYSE:ALSN is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Despite its impressive fundamentals, ALLISON TRANSMISSION HOLDING (NYSE:ALSN) remains undervalued.

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