ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALSN - US01973R1014 - Common Stock
100.28 USD
-1.3 (-1.28%)
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. Both the health and profitability get an excellent rating, making ALSN a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALSN. ALSN also has an excellent dividend rating. This makes ALSN very considerable 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.
Each year in the past 5 years ALSN has been profitable.
Each year in the past 5 years ALSN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.67%, ALSN belongs to the top of the industry, outperforming 90.15% of the companies in the same industry.
ALSN has a better Return On Equity (37.97%) than 96.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.60%, ALSN belongs to the top of the industry, outperforming 88.64% 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 10.21%.
| 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 Profit Margin of 22.78%. This is amongst the best in the industry. ALSN outperforms 98.48% 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.
The Gross Margin of ALSN (48.29%) is better than 90.15% of its industry peers.
In the last couple of years the Gross Margin of ALSN has declined.
| 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
ALSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ALSN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
The debt/assets ratio for ALSN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.77 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.77, ALSN perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
ALSN has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as ALSN would need 3.82 years to pay back of all of its debts.
ALSN has a better Debt to FCF ratio (3.82) than 62.88% 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's Debt to Equity ratio of 1.30 is on the low side compared to the rest of the industry. ALSN is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.66
WACC9.41%
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.
With an excellent Current ratio value of 3.82, ALSN belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
A Quick Ratio of 3.06 indicates that ALSN has no problem at all paying its short term obligations.
The Quick ratio of ALSN (3.06) is better than 89.39% 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.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
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
ALSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.03% yearly.
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 Y-6.56%
EPS Next 2Y0.02%
EPS Next 3Y6.41%
EPS Next 5Y14.03%
Revenue Next Year-6.83%
Revenue Next 2Y-3.36%
Revenue Next 3Y0.26%
Revenue Next 5Y14.49%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.29, ALSN is valued correctly.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 94.70% of the companies are valued more expensively.
ALSN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
The Price/Forward Earnings ratio is 12.06, which indicates a correct valuation of ALSN.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, ALSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 87.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
The excellent profitability rating of ALSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y0.02%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.10%.
ALSN's Dividend Yield is a higher than the industry average which is at 0.85.
Compared to an average S&P500 Dividend Yield of 1.94, ALSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of ALSN grows each year by 10.94%, 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)10.94%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
ALSN pays out 12.88% of its income as dividend. This is a sustainable payout ratio.
ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.88%
EPS Next 2Y0.02%
EPS Next 3Y6.41%
NYSE:ALSN (1/7/2026, 12:35:28 PM)
100.28
-1.3 (-1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.77%
Inst Owner Change0%
Ins Owners0.59%
Ins Owner Change0%
Market Cap8.35B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts72.94
Price Target100.58 (0.3%)
Short Float %3.08%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP12.88%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
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)-0.06%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-5.91%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-12.18%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.06 | ||
| P/S | 2.72 | ||
| P/FCF | 13.29 | ||
| P/OCF | 10.38 | ||
| P/B | 4.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.08 |
EPS(TTM)8.16
EY8.14%
EPS(NY)8.31
Fwd EY8.29%
FCF(TTM)7.55
FCFY7.52%
OCF(TTM)9.66
OCFY9.63%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.11
Graham Number63.73
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 | 2.77 |
F-Score7
WACC9.41%
ROIC/WACC1.66
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 Y-6.56%
EPS Next 2Y0.02%
EPS Next 3Y6.41%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.83%
Revenue Next 2Y-3.36%
Revenue Next 3Y0.26%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year8.47%
EBIT Next 3Y5.79%
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.
What is the valuation status of ALLISON TRANSMISSION HOLDING (ALSN) stock?
ChartMill assigns a valuation rating of 7 / 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.
How financially healthy is ALLISON TRANSMISSION HOLDING?
The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 7 / 10.
Is the dividend of ALLISON TRANSMISSION HOLDING sustainable?
The dividend rating of ALLISON TRANSMISSION HOLDING (ALSN) is 7 / 10 and the dividend payout ratio is 12.88%.