ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
NYSE:ALSN - New York Stock Exchange, Inc. - US01973R1014 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ALSN. ALSN was compared to 128 industry peers in the Machinery industry. ALSN gets an excellent profitability rating and is at the same time showing great financial health properties. ALSN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ALSN very considerable for value 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 14.05%, ALSN belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
The Return On Equity of ALSN (45.29%) is better than 96.09% of its industry peers.
ALSN has a better Return On Invested Capital (16.90%) than 89.06% of its industry peers.
ALSN had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 10.69%.
The last Return On Invested Capital (16.90%) for ALSN is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.05% | ||
| ROE | 45.29% | ||
| ROIC | 16.9% |
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 23.55%. This is amongst the best in the industry. ALSN outperforms 98.44% of its industry peers.
In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
Looking at the Operating Margin, with a value of 31.45%, ALSN belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
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 48.13%, ALSN belongs to the top of the industry, outperforming 91.41% of the companies in the same industry.
ALSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.45% | ||
| PM (TTM) | 23.55% | ||
| GM | 48.13% |
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.
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.
The debt/assets ratio for ALSN has been reduced compared to a year ago.
2.2 Solvency
ALSN has an Altman-Z score of 2.79. 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.
The Altman-Z score of ALSN (2.79) is comparable to the rest of the industry.
The Debt to FCF ratio of ALSN is 3.69, which is a good value as it means it would take ALSN, 3.69 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.69, ALSN is doing good in the industry, outperforming 60.16% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that ALSN has dependencies on debt financing.
ALSN has a Debt to Equity ratio of 1.44. This is amonst the worse of the industry: ALSN underperforms 83.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.75
WACC9.65%
2.3 Liquidity
ALSN has a Current Ratio of 3.05. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
ALSN has a better Current ratio (3.05) than 77.34% of its industry peers.
ALSN has a Quick Ratio of 2.37. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.37, ALSN belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.35% over the past year.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
ALSN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.86%.
ALSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.63% yearly.
EPS 1Y (TTM)15.35%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%17.37%
Revenue 1Y (TTM)3.86%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-2.92%
3.2 Future
ALSN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.32% yearly.
ALSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
EPS Next Y6.98%
EPS Next 2Y10.51%
EPS Next 3Y9%
EPS Next 5Y6.32%
Revenue Next Year-0.73%
Revenue Next 2Y1.54%
Revenue Next 3Y1.68%
Revenue Next 5Y3.34%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALSN is valuated reasonably with a Price/Earnings ratio of 11.70.
Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 89.06% of the companies listed in the same industry.
ALSN is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.96, the valuation of ALSN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.40. ALSN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)1.05
EPS Next 2Y10.51%
EPS Next 3Y9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, ALSN has a reasonable but not impressive dividend return.
ALSN's Dividend Yield is comparable with the industry average which is at 1.91.
Compared to an average S&P500 Dividend Yield of 2.39, ALSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of ALSN is nicely growing with an annual growth rate of 10.94%!
ALSN has been paying a dividend for at least 10 years, so it has a reliable track record.
ALSN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.94%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
ALSN pays out 11.80% of its income as dividend. This is a sustainable payout ratio.
ALSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.8%
EPS Next 2Y10.51%
EPS Next 3Y9%
NYSE:ALSN (6/12/2025, 11:15:03 AM)
101.075
-1.23 (-1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.31%
Inst Owner Change-0.8%
Ins Owners0.45%
Ins Owner Change5.48%
Market Cap8.52B
Analysts72
Price Target101.85 (0.77%)
Short Float %3.8%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP11.8%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.32%
Min EPS beat(2)3.3%
Max EPS beat(2)7.34%
EPS beat(4)4
Avg EPS beat(4)6.02%
Min EPS beat(4)3.14%
Max EPS beat(4)10.3%
EPS beat(8)6
Avg EPS beat(8)8.51%
EPS beat(12)9
Avg EPS beat(12)8.97%
EPS beat(16)12
Avg EPS beat(16)8.9%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-1.42%
Revenue beat(4)2
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)-0.48%
Revenue beat(12)8
Avg Revenue beat(12)-0.18%
Revenue beat(16)10
Avg Revenue beat(16)0.13%
PT rev (1m)1.45%
PT rev (3m)-6.55%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 9.96 | ||
| P/S | 2.66 | ||
| P/FCF | 13.08 | ||
| P/OCF | 10.53 | ||
| P/B | 5.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)8.64
EY8.55%
EPS(NY)10.15
Fwd EY10.04%
FCF(TTM)7.73
FCFY7.64%
OCF(TTM)9.6
OCFY9.5%
SpS38.01
BVpS19.76
TBVpS-14.6
PEG (NY)1.68
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.05% | ||
| ROE | 45.29% | ||
| ROCE | 20.75% | ||
| ROIC | 16.9% | ||
| ROICexc | 20% | ||
| ROICexgc | 68.06% | ||
| OM | 31.45% | ||
| PM (TTM) | 23.55% | ||
| GM | 48.13% | ||
| FCFM | 20.33% |
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%
ROICexcg growth 3Y4.74%
ROICexcg 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-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 132.77% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 8.25 | ||
| Cash Conversion | 71.85% | ||
| Profit Quality | 86.34% | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z | 2.79 |
F-Score8
WACC9.65%
ROIC/WACC1.75
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)15.35%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%17.37%
EPS Next Y6.98%
EPS Next 2Y10.51%
EPS Next 3Y9%
EPS Next 5Y6.32%
Revenue 1Y (TTM)3.86%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-2.92%
Revenue Next Year-0.73%
Revenue Next 2Y1.54%
Revenue Next 3Y1.68%
Revenue Next 5Y3.34%
EBIT growth 1Y9.1%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year15.77%
EBIT Next 3Y8.15%
EBIT Next 5Y7.04%
FCF growth 1Y26.16%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y17.76%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%