ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALSN - US01973R1014 - Common Stock
89.46 USD
+1.62 (+1.84%)
89.46 USD
0 (0%)
ALSN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. ALSN gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALSN. ALSN also has an excellent dividend rating. These ratings could make ALSN a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ALSN was profitable.
In the past year ALSN had a positive cash flow from operations.
ALSN had positive earnings in each of the past 5 years.
In the past 5 years ALSN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALSN (12.67%) is better than 90.77% of its industry peers.
The Return On Equity of ALSN (37.97%) is better than 96.15% of its industry peers.
ALSN's Return On Invested Capital of 15.60% is amongst the best of the industry. ALSN outperforms 87.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.67% | ||
| ROE | 37.97% | ||
| ROIC | 15.6% |
ROA(3y)12.82%
ROA(5y)11.01%
ROE(3y)53.2%
ROE(5y)53.78%
ROIC(3y)16.17%
ROIC(5y)14.56%
1.3 Margins
ALSN has a better Profit Margin (22.78%) than 99.23% of its industry peers.
In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
ALSN has a Operating Margin of 31.70%. This is amongst the best in the industry. ALSN outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of ALSN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 48.29%, ALSN belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
ALSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.7% | ||
| PM (TTM) | 22.78% | ||
| GM | 48.29% |
OM growth 3Y3.47%
OM growth 5Y-1.48%
PM growth 3Y7.2%
PM growth 5Y0.25%
GM growth 3Y-0.12%
GM growth 5Y-1.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALSN is creating some value.
ALSN has less shares outstanding than it did 1 year ago.
ALSN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALSN has been reduced compared to a year ago.
2.2 Solvency
ALSN has an Altman-Z score of 2.59. 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 2.59, ALSN is in line with its industry, outperforming 43.85% of the companies in the same industry.
The Debt to FCF ratio of ALSN is 3.82, which is a good value as it means it would take ALSN, 3.82 years of fcf income to pay off all of its debts.
ALSN has a better Debt to FCF ratio (3.82) than 63.85% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that ALSN has dependencies on debt financing.
ALSN has a worse Debt to Equity ratio (1.30) than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.71
WACC9.12%
2.3 Liquidity
ALSN has a Current Ratio of 3.82. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
ALSN has a Current ratio of 3.82. This is amongst the best in the industry. ALSN outperforms 86.92% of its industry peers.
ALSN has a Quick Ratio of 3.06. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
ALSN has a better Quick ratio (3.06) than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
The earnings per share for ALSN have decreased by -0.61% in the last year.
ALSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.10% yearly.
Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -4.21% in the last year.
Measured over the past years, ALSN shows a small growth in Revenue. The Revenue has been growing by 3.63% on average per year.
EPS 1Y (TTM)-0.61%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%-28.19%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
3.2 Future
Based on estimates for the next years, ALSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.03% on average per year.
ALSN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.49% yearly.
EPS Next Y1.48%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
EPS Next 5Y14.03%
Revenue Next Year-6.12%
Revenue Next 2Y-2.66%
Revenue Next 3Y0.53%
Revenue Next 5Y14.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.96, the valuation of ALSN can be described as reasonable.
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.
ALSN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 9.45, the valuation of ALSN can be described as reasonable.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 95.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
ALSN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALSN is cheaper than 86.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.91 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALSN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ALSN may justify a higher PE ratio.
PEG (NY)7.42
PEG (5Y)0.99
EPS Next 2Y6.74%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
ALSN's Dividend Yield is a higher than the industry average which is at 1.97.
Compared to an average S&P500 Dividend Yield of 2.41, ALSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of ALSN is nicely growing with an annual growth rate of 10.94%!
ALSN has paid a dividend for at least 10 years, which is a reliable track record.
ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.94%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
12.88% 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.
DP12.88%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
89.46
+1.62 (+1.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.52%
Inst Owner Change-0.47%
Ins Owners0.59%
Ins Owner Change0.02%
Market Cap7.48B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts73.75
Price Target98.32 (9.9%)
Short Float %3.23%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP12.88%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4%
Min EPS beat(2)-10.27%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)0.66%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)5.63%
EPS beat(12)9
Avg EPS beat(12)8.1%
EPS beat(16)12
Avg EPS beat(16)8.33%
Revenue beat(2)1
Avg Revenue beat(2)-4.65%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)0.55%
Revenue beat(8)5
Avg Revenue beat(8)-1.46%
Revenue beat(12)8
Avg Revenue beat(12)-0.65%
Revenue beat(16)11
Avg Revenue beat(16)-0.13%
PT rev (1m)-2.31%
PT rev (3m)-2.31%
EPS NQ rev (1m)-5.66%
EPS NQ rev (3m)-10.22%
EPS NY rev (1m)-3.69%
EPS NY rev (3m)-8.71%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.45 | ||
| P/S | 2.44 | ||
| P/FCF | 11.91 | ||
| P/OCF | 9.3 | ||
| P/B | 4.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.07 |
EPS(TTM)8.16
EY9.12%
EPS(NY)9.47
Fwd EY10.58%
FCF(TTM)7.51
FCFY8.4%
OCF(TTM)9.61
OCFY10.75%
SpS36.7
BVpS22.02
TBVpS-12.56
PEG (NY)7.42
PEG (5Y)0.99
Graham Number63.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.67% | ||
| ROE | 37.97% | ||
| ROCE | 19.16% | ||
| ROIC | 15.6% | ||
| ROICexc | 18.97% | ||
| ROICexgc | 61.62% | ||
| OM | 31.7% | ||
| PM (TTM) | 22.78% | ||
| GM | 48.29% | ||
| FCFM | 20.46% |
ROA(3y)12.82%
ROA(5y)11.01%
ROE(3y)53.2%
ROE(5y)53.78%
ROIC(3y)16.17%
ROIC(5y)14.56%
ROICexc(3y)18.31%
ROICexc(5y)16.12%
ROICexgc(3y)68.06%
ROICexgc(5y)64.53%
ROCE(3y)19.85%
ROCE(5y)17.88%
ROICexgc growth 3Y4.74%
ROICexgc growth 5Y-6.1%
ROICexc growth 3Y12.45%
ROICexc growth 5Y1.03%
OM growth 3Y3.47%
OM growth 5Y-1.48%
PM growth 3Y7.2%
PM growth 5Y0.25%
GM growth 3Y-0.12%
GM growth 5Y-1.71%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 143.09% | ||
| Cap/Sales | 5.73% | ||
| Interest Coverage | 8.11 | ||
| Cash Conversion | 73.36% | ||
| Profit Quality | 89.84% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.06 | ||
| Altman-Z | 2.59 |
F-Score7
WACC9.12%
ROIC/WACC1.71
Cap/Depr(3y)102.36%
Cap/Depr(5y)100.29%
Cap/Sales(3y)4.86%
Cap/Sales(5y)5.48%
Profit Quality(3y)93.4%
Profit Quality(5y)106.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.61%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%-28.19%
EPS Next Y1.48%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.12%
Revenue Next 2Y-2.66%
Revenue Next 3Y0.53%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year14.22%
EBIT Next 3Y9.57%
EBIT Next 5Y15.21%
FCF growth 1Y3.8%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y4.42%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%
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.
Can you provide the valuation status for ALLISON TRANSMISSION HOLDING?
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 8 / 10.
What are the PE and PB ratios of ALLISON TRANSMISSION HOLDING (ALSN) stock?
The Price/Earnings (PE) ratio for ALLISON TRANSMISSION HOLDING (ALSN) is 10.96 and the Price/Book (PB) ratio is 4.06.
What is the expected EPS growth for ALLISON TRANSMISSION HOLDING (ALSN) stock?
The Earnings per Share (EPS) of ALLISON TRANSMISSION HOLDING (ALSN) is expected to grow by 1.48% in the next year.