In a market where value is scarce, NYSE:ALSN offers a refreshing opportunity with its solid fundamentals.

Last update: Feb 28, 2024

Take a closer look at ALLISON TRANSMISSION HOLDING (NYSE:ALSN), a remarkable value stock uncovered by our stock screener. NYSE:ALSN excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ALSN, the assigned 8 reflects its valuation:

With a Price/Earnings ratio of 10.13, the valuation of ALSN can be described as very reasonable.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 91.60% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, ALSN is valued rather cheaply.
The Price/Forward Earnings ratio is 10.62, which indicates a very decent valuation of ALSN.
ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 89.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.57, ALSN is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaper than 81.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 89.31% of the companies are valued more expensively.
The excellent profitability rating of ALSN may justify a higher PE ratio.

Evaluating Profitability: 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 better Return On Assets (13.39%) than 90.84% of its industry peers.
With an excellent Return On Equity value of 54.58%, ALSN belongs to the best of the industry, outperforming 98.47% of the companies in the same industry.
ALSN has a better Return On Invested Capital (16.63%) than 89.31% of its industry peers.
ALSN had an Average Return On Invested Capital over the past 3 years of 15.20%. This is above the industry average of 10.63%.
The last Return On Invested Capital (16.63%) for ALSN is above the 3 year average (15.20%), which is a sign of increasing profitability.
ALSN's Profit Margin of 22.17% is amongst the best of the industry. ALSN outperforms 98.47% of its industry peers.
The Operating Margin of ALSN (30.28%) is better than 100.00% of its industry peers.
Looking at the Gross Margin, with a value of 48.43%, ALSN belongs to the top of the industry, outperforming 93.13% of the companies in the same industry.

Health Insights: NYSE:ALSN

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ALSN, the assigned 6 reflects its health status:

ALSN has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as ALSN would need 3.80 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.80, ALSN is doing good in the industry, outperforming 62.60% of the companies in the same industry.
A Current Ratio of 2.50 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a Current ratio of 2.50. This is in the better half of the industry: ALSN outperforms 64.12% of its industry peers.
ALSN has a better Quick ratio (1.94) than 77.10% of its industry peers.

Growth Analysis for NYSE:ALSN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ALSN boasts a 5 out of 10:

ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.54%, which is quite impressive.
Measured over the past years, ALSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.25% on average per year.
The Revenue has grown by 9.61% in the past year. This is quite good.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.