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Is NYSE:ALSN a Good Fit for Dividend Investing?

By Mill Chart

Last update: Oct 20, 2023

Take a closer look at ALLISON TRANSMISSION HOLDING (NYSE:ALSN), a stock of interest to dividend investors uncovered by our stock screener. NYSE:ALSN excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

How do we evaluate the Dividend for NYSE:ALSN?

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:ALSN has achieved a 7 out of 10:

  • Compared to an average industry Dividend Yield of 1.96, ALSN pays a bit more dividend than its industry peers.
  • On average, the dividend of ALSN grows each year by 7.41%, which is quite nice.
  • ALSN has paid a dividend for at least 10 years, which is a reliable track record.
  • ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
  • 13.12% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
  • ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ALSN has earned a 5 out of 10:

  • ALSN has a better Debt to FCF ratio (4.16) than 69.23% of its industry peers.
  • ALSN has a Current Ratio of 2.15. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • ALSN has a Quick ratio of 1.59. This is in the better half of the industry: ALSN outperforms 70.77% of its industry peers.

Profitability Examination for NYSE:ALSN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ALSN scores a 8 out of 10:

  • With an excellent Return On Assets value of 12.87%, ALSN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • ALSN has a better Return On Equity (59.19%) than 99.23% of its industry peers.
  • ALSN has a better Return On Invested Capital (15.87%) than 88.46% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ALSN is above the industry average of 9.96%.
  • The last Return On Invested Capital (15.87%) for ALSN is above the 3 year average (12.92%), which is a sign of increasing profitability.
  • Looking at the Profit Margin, with a value of 21.17%, ALSN belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
  • The Operating Margin of ALSN (29.37%) is better than 100.00% of its industry peers.
  • With an excellent Gross Margin value of 47.70%, ALSN belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ALSN

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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ALLISON TRANSMISSION HOLDING

NYSE:ALSN (2/23/2024, 3:35:29 PM)

After market: 74.63 0 (0%)

74.63

+1.24 (+1.69%)

ALSN News

News Image2 days ago - Allison Transmission Holdings Inc.Allison Transmission Announces a 9% Increase to the Quarterly Dividend and the Annual Stockholders Meeting and Record Date
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Allison Ventures invests in Niron Magnetics, a company specializing in sustainable non-rare earth permanent magnets, to address the demand for eco-friendly...

News Image3 days ago - Allison TransmissionAllison Ventures Announces Strategic Investment in Niron Magnetics
News Image9 days ago - The Motley FoolWhy Allison Transmission Stock Jumped Today

The commercial-duty transmission manufacturer just capped a record year.

News Image9 days ago - Seeking AlphaAllison Transmission shares rally on record sales (ALSN)

Allison Transmission shares set all-time high on record Q4, 2024 sales. Read more here.

News Image9 days ago - Investor's Business DailyStock Chart Special: Allison Sets Up For a Breakaway Gap

Allison shares rocketed on Q4 results Wednesday, setting the stage for a stock chart maneuver known as a breakaway gap.

News Image10 days ago - Allison Transmission Holdings Inc.Allison Transmission Announces Record Fourth Quarter and Full Year 2023 Results
News Image11 days ago - ChartmillExploring NYSE:ALSN's dividend characteristics.

Why the dividend investor may take a look at ALLISON TRANSMISSION HOLDING (NYSE:ALSN).

News Image15 days ago - Market News VideoInteresting ALSN Put And Call Options For March 15th
News Image15 days ago - Allison TransmissionAllison Transmission’s 3414 Regional Haul Series™ Selected by One of the World’s Largest Logistics Companies for Natural Gas-Powered Fleet
News Image16 days ago - Allison TransmissionAllison Transmission Partners with Volare to Introduce South America’s First School Buses Equipped with Fully Automatic Transmissions
News Image17 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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