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

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.

Valuation Insights: NYSE:ALSN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ALSN boasts a 9 out of 10:

• A Price/Earnings ratio of 8.08 indicates a reasonable valuation of ALSN.
• ALSN's Price/Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 94.62% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 25.82, ALSN is valued rather cheaply.
• A Price/Forward Earnings ratio of 7.69 indicates a rather cheap valuation of ALSN.
• Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 95.38% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 20.77. ALSN is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaply inside the industry as 86.92% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, ALSN is valued cheaper than 90.77% of the companies in the same industry.
• 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.
• A more expensive valuation may be justified as ALSN's earnings are expected to grow with 13.94% in the coming years.

Profitability Analysis for NYSE:ALSN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ALSN has achieved a 8:

• ALSN has a Return On Assets of 12.91%. This is amongst the best in the industry. ALSN outperforms 90.00% of its industry peers.
• ALSN's Return On Equity of 54.39% is amongst the best of the industry. ALSN outperforms 98.46% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 15.77%, ALSN belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.60%.
• 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.
• With an excellent Profit Margin value of 21.63%, ALSN belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
• ALSN has a Operating Margin of 29.75%. This is amongst the best in the industry. ALSN outperforms 100.00% of its industry peers.
• With an excellent Gross Margin value of 48.25%, ALSN belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.

Assessing Health Metrics for NYSE:ALSN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ALSN, the assigned 5 for health provides valuable insights:

• The Debt to FCF ratio of ALSN (4.14) is better than 65.38% of its industry peers.
• 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.
• The Current ratio of ALSN (2.41) is better than 63.08% of its industry peers.
• The Quick ratio of ALSN (1.86) is better than 75.38% of its industry peers.

Exploring NYSE:ALSN's Growth

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 5 out of 10:

• ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.63%, which is quite impressive.
• The Earnings Per Share has been growing by 18.97% on average over the past years. This is quite good.
• ALSN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.50%.
• Based on estimates for the next years, ALSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.41% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.