ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

112.23 USD
-0.95 (-0.84%)
Last: Mar 12, 2026, 12:52 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ALSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to ALSN. ALSN was compared to 131 industry peers in the Machinery industry. ALSN has an excellent profitability rating, but there are some minor concerns on its financial health. ALSN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ALSN a good candidate for value investing.


Dividend Valuation Growth Profitability Health

9

1. ALSN Profitability Analysis

1.1 Basic Checks

  • In the past year ALSN was profitable.
  • ALSN had a positive operating cash flow in the past year.
  • ALSN had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ALSN had a positive operating cash flow.
ALSN Yearly Net Income VS EBIT VS OCF VS FCFALSN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of ALSN (10.24%) is better than 82.44% of its industry peers.
  • ALSN's Return On Equity of 33.37% is amongst the best of the industry. ALSN outperforms 95.42% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.63%, ALSN belongs to the best of the industry, outperforming 84.73% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.16%.
Industry RankSector Rank
ROA 10.24%
ROE 33.37%
ROIC 13.63%
ROA(3y)12.45%
ROA(5y)11.72%
ROE(3y)44.08%
ROE(5y)52.54%
ROIC(3y)15.41%
ROIC(5y)14.87%
ALSN Yearly ROA, ROE, ROICALSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • With an excellent Profit Margin value of 20.70%, ALSN belongs to the best of the industry, outperforming 97.71% of the companies in the same industry.
  • ALSN's Profit Margin has improved in the last couple of years.
  • ALSN's Operating Margin of 32.03% is amongst the best of the industry. ALSN outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of ALSN has grown nicely.
  • Looking at the Gross Margin, with a value of 48.60%, ALSN belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
  • ALSN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 32.03%
PM (TTM) 20.7%
GM 48.6%
OM growth 3Y4.52%
OM growth 5Y4.45%
PM growth 3Y2.58%
PM growth 5Y7.57%
GM growth 3Y1.24%
GM growth 5Y0.13%
ALSN Yearly Profit, Operating, Gross MarginsALSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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6

2. ALSN Health Analysis

2.1 Basic Checks

  • ALSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
  • ALSN has less shares outstanding than it did 5 years ago.
  • ALSN has a worse debt/assets ratio than last year.
ALSN Yearly Shares OutstandingALSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ALSN Yearly Total Debt VS Total AssetsALSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • ALSN has an Altman-Z score of 2.69. This is not the best score and indicates that ALSN is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.69, ALSN is in line with its industry, outperforming 45.04% of the companies in the same industry.
  • The Debt to FCF ratio of ALSN is 4.37, which is a neutral value as it means it would take ALSN, 4.37 years of fcf income to pay off all of its debts.
  • ALSN has a Debt to FCF ratio (4.37) which is in line with its industry peers.
  • A Debt/Equity ratio of 1.55 is on the high side and indicates that ALSN has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.55, ALSN is doing worse than 83.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.69
ROIC/WACC1.51
WACC9%
ALSN Yearly LT Debt VS Equity VS FCFALSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 4.85 indicates that ALSN has no problem at all paying its short term obligations.
  • ALSN has a Current ratio of 4.85. This is amongst the best in the industry. ALSN outperforms 90.08% of its industry peers.
  • ALSN has a Quick Ratio of 4.17. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • ALSN has a Quick ratio of 4.17. This is amongst the best in the industry. ALSN outperforms 90.84% of its industry peers.
Industry RankSector Rank
Current Ratio 4.85
Quick Ratio 4.17
ALSN Yearly Current Assets VS Current LiabilitesALSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALSN Growth Analysis

3.1 Past

  • The earnings per share for ALSN have decreased by -6.50% in the last year.
  • ALSN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.30% yearly.
  • Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -6.67% in the last year.
  • The Revenue has been growing slightly by 7.66% on average over the past years.
EPS 1Y (TTM)-6.5%
EPS 3Y12%
EPS 5Y22.3%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%

3.2 Future

  • The Earnings Per Share is expected to grow by 17.61% on average over the next years. This is quite good.
  • ALSN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.97% yearly.
EPS Next Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue Next Year56.05%
Revenue Next 2Y27.07%
Revenue Next 3Y29.97%
Revenue Next 5Y17.97%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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.
ALSN Yearly Revenue VS EstimatesALSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ALSN Yearly EPS VS EstimatesALSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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8

4. ALSN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.44, which indicates a correct valuation of ALSN.
  • Based on the Price/Earnings ratio, ALSN is valued cheaper than 87.79% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.15. ALSN is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 11.56, 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 92.37% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.27. ALSN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 14.44
Fwd PE 11.56
ALSN Price Earnings VS Forward Price EarningsALSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaply inside the industry as 84.73% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 88.55% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.06
EV/EBITDA 9.9
ALSN Per share dataALSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
  • ALSN's earnings are expected to grow with 17.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.65
EPS Next 2Y17.6%
EPS Next 3Y17.96%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ALSN Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.95%, ALSN is not a good candidate for dividend investing.
  • ALSN's Dividend Yield is a higher than the industry average which is at 1.13.
  • Compared to an average S&P500 Dividend Yield of 1.82, ALSN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.95%

5.2 History

  • The dividend of ALSN is nicely growing with an annual growth rate of 9.76%!
  • ALSN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.76%
Div Incr Years5
Div Non Decr Years12
ALSN Yearly Dividends per shareALSN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 14.61% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
  • ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.61%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
ALSN Yearly Income VS Free CF VS DividendALSN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
ALSN Dividend Payout.ALSN Dividend Payout, showing the Payout Ratio.ALSN Dividend Payout.PayoutRetained Earnings

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ALSN Fundamentals: All Metrics, Ratios and Statistics

ALLISON TRANSMISSION HOLDING

NYSE:ALSN (3/12/2026, 12:52:41 PM)

112.23

-0.95 (-0.84%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners103.99%
Inst Owner Change0.95%
Ins Owners0.62%
Ins Owner Change6.01%
Market Cap9.29B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target111.6 (-0.56%)
Short Float %2.81%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
Yearly Dividend1.08
Dividend Growth(5Y)9.76%
DP14.61%
Div Incr Years5
Div Non Decr Years12
Ex-Date03-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.86%
Min EPS beat(2)-10.27%
Max EPS beat(2)2.55%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)2.14%
EPS beat(12)9
Avg EPS beat(12)6.72%
EPS beat(16)12
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-4.97%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-1.74%
Revenue beat(12)7
Avg Revenue beat(12)-1%
Revenue beat(16)10
Avg Revenue beat(16)-0.54%
PT rev (1m)0%
PT rev (3m)13.51%
EPS NQ rev (1m)11.95%
EPS NQ rev (3m)13.85%
EPS NY rev (1m)8.93%
EPS NY rev (3m)15.87%
Revenue NQ rev (1m)66.68%
Revenue NQ rev (3m)67.82%
Revenue NY rev (1m)54.68%
Revenue NY rev (3m)56.1%
Valuation
Industry RankSector Rank
PE 14.44
Fwd PE 11.56
P/S 3.09
P/FCF 14.06
P/OCF 11.12
P/B 4.98
P/tB N/A
EV/EBITDA 9.9
EPS(TTM)7.77
EY6.92%
EPS(NY)9.71
Fwd EY8.65%
FCF(TTM)7.98
FCFY7.11%
OCF(TTM)10.1
OCFY9%
SpS36.35
BVpS22.55
TBVpS-12.1
PEG (NY)0.58
PEG (5Y)0.65
Graham Number62.78
Profitability
Industry RankSector Rank
ROA 10.24%
ROE 33.37%
ROCE 17.15%
ROIC 13.63%
ROICexc 18.57%
ROICexgc 60.91%
OM 32.03%
PM (TTM) 20.7%
GM 48.6%
FCFM 21.96%
ROA(3y)12.45%
ROA(5y)11.72%
ROE(3y)44.08%
ROE(5y)52.54%
ROIC(3y)15.41%
ROIC(5y)14.87%
ROICexc(3y)18.87%
ROICexc(5y)17.21%
ROICexgc(3y)66.28%
ROICexgc(5y)64.07%
ROCE(3y)19.39%
ROCE(5y)18.71%
ROICexgc growth 3Y-0.25%
ROICexgc growth 5Y1.86%
ROICexc growth 3Y5.99%
ROICexc growth 5Y10.58%
OM growth 3Y4.52%
OM growth 5Y4.45%
PM growth 3Y2.58%
PM growth 5Y7.57%
GM growth 3Y1.24%
GM growth 5Y0.13%
F-Score6
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Debt/EBITDA 2.65
Cap/Depr 141.13%
Cap/Sales 5.81%
Interest Coverage 8.03
Cash Conversion 76.84%
Profit Quality 106.1%
Current Ratio 4.85
Quick Ratio 4.17
Altman-Z 2.69
F-Score6
WACC9%
ROIC/WACC1.51
Cap/Depr(3y)113.49%
Cap/Depr(5y)112.98%
Cap/Sales(3y)4.79%
Cap/Sales(5y)5.54%
Profit Quality(3y)98.01%
Profit Quality(5y)98.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.5%
EPS 3Y12%
EPS 5Y22.3%
EPS Q2Q%-19.4%
EPS Next Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year56.05%
Revenue Next 2Y27.07%
Revenue Next 3Y29.97%
Revenue Next 5Y17.97%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year50.4%
EBIT Next 3Y24.57%
EBIT Next 5Y18.39%
FCF growth 1Y0.46%
FCF growth 3Y10.49%
FCF growth 5Y8.19%
OCF growth 1Y4.37%
OCF growth 3Y8.36%
OCF growth 5Y8.31%

ALLISON TRANSMISSION HOLDING / ALSN FAQ

Can you provide the ChartMill fundamental rating for ALLISON TRANSMISSION HOLDING?

ChartMill assigns a fundamental rating of 7 / 10 to ALSN.


What is the valuation status of ALLISON TRANSMISSION HOLDING (ALSN) stock?

ChartMill assigns a valuation rating of 8 / 10 to ALLISON TRANSMISSION HOLDING (ALSN). This can be considered as Undervalued.


What is the profitability of ALSN stock?

ALLISON TRANSMISSION HOLDING (ALSN) has a profitability rating of 9 / 10.


How financially healthy is ALLISON TRANSMISSION HOLDING?

The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 6 / 10.


Is the dividend of ALLISON TRANSMISSION HOLDING sustainable?

The dividend rating of ALLISON TRANSMISSION HOLDING (ALSN) is 6 / 10 and the dividend payout ratio is 14.61%.