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Investors should take notice of NYSE:ALSN—it offers a great deal for the fundamentals it presents.

By Mill Chart

Last update: Mar 20, 2024

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.

Evaluating Valuation: NYSE:ALSN

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:

  • The Price/Earnings ratio is 10.40, which indicates a very decent valuation of ALSN.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 90.08% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.82. ALSN is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 10.05 indicates a reasonable valuation of ALSN.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 91.60% of the companies listed in the same industry.
  • ALSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.25.
  • ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 83.21% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 91.60% of the companies listed in the same industry.
  • ALSN has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NYSE:ALSN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ALSN, the assigned 8 is a significant indicator of profitability:

  • ALSN has a better Return On Assets (13.39%) than 89.31% of its industry peers.
  • The Return On Equity of ALSN (54.58%) is better than 98.47% of its industry peers.
  • ALSN has a better Return On Invested Capital (16.63%) than 90.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.64%.
  • The 3 year average ROIC (15.20%) for ALSN is below the current ROIC(16.63%), indicating increased profibility in the last year.
  • With an excellent Profit Margin value of 22.17%, ALSN belongs to the best of the industry, outperforming 98.47% of the companies in the same industry.
  • ALSN has a Operating Margin of 30.28%. This is amongst the best in the industry. ALSN outperforms 100.00% of its industry peers.
  • ALSN has a Gross Margin of 48.43%. This is amongst the best in the industry. ALSN outperforms 93.13% of its industry peers.

Evaluating Health: NYSE:ALSN

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ALSN has achieved a 6 out of 10:

  • The Debt to FCF ratio of ALSN is 3.80, which is a good value as it means it would take ALSN, 3.80 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.80, ALSN is in the better half of the industry, outperforming 61.83% 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.
  • Looking at the Current ratio, with a value of 2.50, ALSN is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
  • Looking at the Quick ratio, with a value of 1.94, ALSN is in the better half of the industry, outperforming 77.10% of the companies in the same industry.

A Closer Look at Growth 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.
  • Looking at the last year, ALSN shows a quite strong growth in Revenue. The Revenue has grown by 9.61% in the last year.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

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

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.

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ALLISON TRANSMISSION HOLDING

NYSE:ALSN (5/29/2024, 7:04:00 PM)

After market: 74.48 0 (0%)

74.48

-0.64 (-0.85%)

ALSN News

News Image3 days ago - ChartmillNYSE:ALSN stands out as a stock that provides good value for the fundamentals it showcases.

ALLISON TRANSMISSION HOLDING (NYSE:ALSN) is probably undervalued for the fundamentals it is displaying.

News Image14 days ago - Allison Transmission Holdings Inc.Allison Transmission Announces Strategic Investment in EnerTech Capital

/PRNewswire/ -- Allison Ventures, Allison Transmission's venture capital arm, is pleased to announce it has committed to a $10 million investment in EnerTech...

News Image22 days ago - Allison Transmission Holdings Inc.Allison Transmission Declares Quarterly Dividend

/PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN) today announced that its Board of Directors has declared a cash dividend of $0.25 per share on...

News Imagea month ago - InvestorPlaceALSN Stock Earnings: Allison Transmission Beats EPS, Beats Revenue for Q1 2024

ALSN stock results show that Allison Transmission beat analyst estimates for earnings per share and beat on revenue for the first quarter of 2024.

News Imagea month ago - BusinessInsiderALSN Stock Earnings: Allison Transmission Beats EPS, Beats Revenue for Q1 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Allison Transmission (NYSE:ALSN) just reported results for the first quarter of...

News Imagea month ago - Allison Transmission Holdings Inc.Allison Transmission Announces First Quarter 2024 Results

/PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), today reported first quarter net sales of $789 million and first quarter diluted EPS of $1.90,...

News Imagea month ago - Allison Transmission Holdings Inc.International Truck Integrates Allison Fully Automatic Transmissions with S13 Engine

/PRNewswire/ -- Allison Transmission announced today that International Truck, a Navistar brand, has integrated Allison fully automatic transmissions into...

News Imagea month ago - Market News VideoFirst Week of June 21st Options Trading For Allison Transmission Holdings (ALSN)
News Imagea month ago - Allison Transmission Holdings Inc.Allison Transmission Delivers Cross-Drive Transmission to Turkish Armed Forces for Next Generation Tracked Defense Vehicle

/PRNewswire/ -- Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions for tactical wheeled and...

News Imagea month ago - Allison Transmission Holdings Inc.Allison Transmission Expands Partnership with SANY to Provide Specialty Series™ Transmission for 500-Ton All-Terrain Crane

/PRNewswire/ -- Allison Transmission partnered with SANY, a leading global heavy equipment manufacturer for the mining and construction markets, to integrate...

News Image2 months ago - Allison Transmission Holdings Inc.Allison Transmission Schedules First Quarter 2024 Earnings Conference Call

/PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a leading designer and manufacturer of conventional and electrified vehicle propulsion...

News Image2 months ago - Allison TransmissionAllison Transmission and Yutong Expand Presence in Rwanda
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