ALLISON TRANSMISSION HOLDING (ALSN)
US01973R1014 - Common Stock
Taking everything into account, ALSN scores 7 out of 10 in our fundamental rating. ALSN was compared to 132 industry peers in the Machinery industry. ALSN has an excellent profitability rating, but there are some minor concerns on its financial health. ALSN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ALSN a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ALSN was profitable.
ALSN had a positive operating cash flow in the past year.
Each year in the past 5 years ALSN has been profitable.
ALSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALSN (13.39%) is better than 89.15% of its industry peers.
ALSN has a better Return On Equity (54.58%) than 98.45% of its industry peers.
ALSN has a Return On Invested Capital of 16.63%. This is amongst the best in the industry. ALSN outperforms 89.92% 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 10.73%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.39% | ||
| ROE | 54.58% | ||
| ROIC | 16.63% |
ROA(3y)11.56%
ROA(5y)10.99%
ROE(3y)61.68%
ROE(5y)60.39%
ROIC(3y)15.2%
ROIC(5y)14.91%
1.3 Margins
ALSN has a better Profit Margin (22.17%) than 98.45% of its industry peers.
ALSN's Profit Margin has been stable in the last couple of years.
ALSN has a Operating Margin of 30.28%. 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 declined.
ALSN has a better Gross Margin (48.43%) than 93.02% of its industry peers.
In the last couple of years the Gross Margin of ALSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.28% | ||
| PM (TTM) | 22.17% | ||
| GM | 48.43% |
OM growth 3Y5.21%
OM growth 5Y-2.39%
PM growth 3Y15.56%
PM growth 5Y-1.2%
GM growth 3Y0.1%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALSN is creating value.
The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
ALSN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, ALSN is doing worse than 60.47% of the companies in the same industry.
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.
ALSN's Debt to FCF ratio of 3.80 is fine compared to the rest of the industry. ALSN outperforms 61.24% of its industry peers.
ALSN has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ALSN (2.03) is worse than 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.85
WACC8.97%
2.3 Liquidity
A Current Ratio of 2.50 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a better Current ratio (2.50) than 65.89% of its industry peers.
ALSN has a Quick Ratio of 1.94. This is a normal value and indicates that ALSN is financially healthy and should not expect problems in meeting its short term obligations.
ALSN has a Quick ratio of 1.94. This is in the better half of the industry: ALSN outperforms 77.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.54% over the past year.
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.
ALSN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
Measured over the past years, ALSN shows a small growth in Revenue. The Revenue has been growing by 2.27% on average per year.
EPS 1Y (TTM)34.54%
EPS 3Y37.85%
EPS 5Y9.25%
EPS growth Q2Q25.66%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y13.4%
Revenue growth 5Y2.27%
Revenue growth Q2Q7.94%
3.2 Future
Based on estimates for the next years, ALSN will show a small growth in Earnings Per Share. The EPS will grow by 7.47% on average per year.
ALSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
EPS Next Y3.53%
EPS Next 2Y7.4%
EPS Next 3Y10.49%
EPS Next 5Y7.47%
Revenue Next Year3.07%
Revenue Next 2Y4.16%
Revenue Next 3Y4.87%
Revenue Next 5Y3.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 10.65, which indicates a very decent valuation of ALSN.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (25.25), we can say ALSN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.29, the valuation of ALSN can be described as reasonable.
91.47% of the companies in the same industry are more expensive than ALSN, based on the Price/Forward Earnings ratio.
ALSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
82.17% of the companies in the same industry are more expensive than ALSN, based on the Enterprise Value to EBITDA ratio.
ALSN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALSN is cheaper than 92.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 8.35 |
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.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)1.15
EPS Next 2Y7.4%
EPS Next 3Y10.49%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 1.71, ALSN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.26, ALSN pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of ALSN grows each year by 9.02%, which is quite nice.
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)9.02%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
ALSN pays out 12.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALSN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.33%
EPS Next 2Y7.4%
EPS Next 3Y10.49%
ALLISON TRANSMISSION HOLDING
NYSE:ALSN (4/25/2024, 12:34:04 PM)
79.245
-0.78 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 10.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.02
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.39% | ||
| ROE | 54.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.28% | ||
| PM (TTM) | 22.17% | ||
| GM | 48.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.54%
EPS 3Y37.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.61%
Revenue growth 3Y13.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y