Uncovering Dividend Opportunities with NYSE:ALSN.

Last update: Nov 10, 2023

ALLISON TRANSMISSION HOLDING (NYSE:ALSN) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:ALSN demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

A Closer Look at Dividend for NYSE:ALSN

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:ALSN was assigned a score of 7 for dividend:

Compared to an average industry Dividend Yield of 2.03, ALSN pays a bit more dividend than its industry peers.
The dividend of ALSN is nicely growing with an annual growth rate of 7.41%!
ALSN has paid a dividend for at least 10 years, which is a reliable track record.
ALSN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
ALSN pays out 12.73% of its income as dividend. This is a sustainable payout ratio.
ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Unpacking NYSE:ALSN's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ALSN was assigned a score of 5 for health:

With a decent Debt to FCF ratio value of 4.14, ALSN is doing good in the industry, outperforming 64.62% of the companies in the same industry.
ALSN has a Current Ratio of 2.41. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.41, ALSN is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
ALSN has a Quick ratio of 1.86. This is in the better half of the industry: ALSN outperforms 75.38% of its industry peers.

What does the Profitability looks like for NYSE:ALSN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ALSN has earned a 8 out of 10:

The Return On Assets of ALSN (12.91%) is better than 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 54.39%, ALSN belongs to the top of the industry, outperforming 99.23% of the companies in the same industry.
The Return On Invested Capital of ALSN (15.77%) is better than 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.13%.
The last Return On Invested Capital (15.77%) for ALSN is above the 3 year average (12.92%), which is a sign of increasing profitability.
The Profit Margin of ALSN (21.63%) is better than 98.46% of its industry peers.
ALSN has a Operating Margin of 29.75%. This is amongst the best in the industry. ALSN outperforms 100.00% of its industry peers.
Looking at the Gross Margin, with a value of 48.25%, ALSN belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

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.