Why NYSE:ALSN provides a good dividend, while having solid fundamentals.

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 employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:ALSN has been assigned a 7 for dividend:

• ALSN's Dividend Yield is a higher than the industry average which is at 1.77.
• The dividend of ALSN is nicely growing with an annual growth rate of 7.40%!
• 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.
• 12.73% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
• The dividend of ALSN is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NYSE:ALSN

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ALSN has earned a 6 out of 10:

• ALSN's Debt to FCF ratio of 4.14 is fine compared to the rest of the industry. ALSN outperforms 65.65% of its industry peers.
• A Current Ratio of 2.41 indicates that ALSN has no problem at all paying its short term obligations.
• ALSN has a better Current ratio (2.41) than 62.60% of its industry peers.
• ALSN's Quick ratio of 1.86 is fine compared to the rest of the industry. ALSN outperforms 74.81% of its industry peers.

Profitability Assessment of NYSE:ALSN

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:

• With an excellent Return On Assets value of 12.91%, ALSN belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
• ALSN has a better Return On Equity (54.39%) than 98.47% of its industry peers.
• With an excellent Return On Invested Capital value of 15.77%, ALSN belongs to the best of the industry, outperforming 87.79% 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 3 year average ROIC (12.92%) for ALSN is below the current ROIC(15.77%), indicating increased profibility in the last year.
• The Profit Margin of ALSN (21.63%) is better than 98.47% of its industry peers.
• With an excellent Operating Margin value of 29.75%, ALSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• ALSN's Gross Margin of 48.25% is amongst the best of the industry. ALSN outperforms 93.13% of its industry peers.

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

Our latest full fundamental report of ALSN contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.