ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

112.6 USD
-1.86 (-1.63%)
At close:
112.6 USD
0 (0%)
After Hours:

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

9

1. ALSN Profitability Analysis

1.1 Basic Checks

  • In the past year ALSN was profitable.
  • In the past year ALSN had a positive cash flow from operations.
  • In the past 5 years ALSN has always been profitable.
  • ALSN had a positive operating cash flow in each of the past 5 years.
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.
  • Looking at the Return On Equity, with a value of 33.37%, ALSN belongs to the top of the industry, outperforming 95.42% of the companies in the same industry.
  • ALSN has a Return On Invested Capital of 13.63%. This is amongst the best in the industry. ALSN outperforms 84.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.17%.
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

  • ALSN's Profit Margin of 20.70% is amongst the best of the industry. ALSN outperforms 96.95% of its industry peers.
  • ALSN's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 32.03%, ALSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • ALSN's Operating Margin has improved in the last couple of years.
  • The Gross Margin of ALSN (48.60%) is better than 88.55% of its industry peers.
  • 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

  • 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.
  • The number of shares outstanding for ALSN has been reduced compared to 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.
  • ALSN's Altman-Z score of 2.69 is in line compared to the rest of the industry. ALSN outperforms 46.56% of its industry peers.
  • ALSN has a debt to FCF ratio of 4.37. This is a neutral value as ALSN would need 4.37 years to pay back of all of its debts.
  • ALSN has a Debt to FCF ratio (4.37) which is in line with its industry peers.
  • ALSN has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
  • ALSN has a worse Debt to Equity ratio (1.55) than 83.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.69
ROIC/WACC1.39
WACC9.79%
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.
  • Looking at the Current ratio, with a value of 4.85, ALSN belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
  • 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.
  • The Earnings Per Share has been growing by 22.30% on average over the past years. This is a very strong growth
  • ALSN shows a decrease in Revenue. In the last year, the revenue decreased by -6.67%.
  • 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

  • Based on estimates for the next years, ALSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.61% on average per year.
  • Based on estimates for the next years, ALSN will show a quite strong growth in Revenue. The Revenue will grow by 17.97% on average per year.
EPS Next Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue Next Year78.92%
Revenue Next 2Y42.12%
Revenue Next 3Y29.24%
Revenue Next 5Y17.97%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

  • Based on the Price/Earnings ratio of 14.49, the valuation of ALSN can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 84.73% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.75, ALSN is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of ALSN.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 89.31% of the companies listed in the same industry.
  • ALSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
Industry RankSector Rank
PE 14.49
Fwd PE 11.6
ALSN Price Earnings VS Forward Price EarningsALSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALSN is valued a bit cheaper than the industry average as 77.10% 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 86.26% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.11
EV/EBITDA 9.85
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.
  • The excellent profitability rating of ALSN 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 1.00%, ALSN is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.20, ALSN pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ALSN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1%

5.2 History

  • The dividend of ALSN is nicely growing with an annual growth rate of 9.76%!
  • ALSN has paid a dividend for at least 10 years, which is 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)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.
  • The dividend of ALSN is growing, but earnings are growing more, so the dividend growth is 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 (3/30/2026, 8:04:00 PM)

After market: 112.6 0 (0%)

112.6

-1.86 (-1.63%)

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 Change5.92%
Market Cap9.32B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target124.99 (11%)
Short Float %2.56%
Short Ratio2.32
Dividend
Industry RankSector Rank
Dividend Yield 1%
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)12%
PT rev (3m)24.27%
EPS NQ rev (1m)8.6%
EPS NQ rev (3m)18.01%
EPS NY rev (1m)8.93%
EPS NY rev (3m)16.8%
Revenue NQ rev (1m)26.9%
Revenue NQ rev (3m)83.22%
Revenue NY rev (1m)43.7%
Revenue NY rev (3m)78.63%
Valuation
Industry RankSector Rank
PE 14.49
Fwd PE 11.6
P/S 3.1
P/FCF 14.11
P/OCF 11.15
P/B 4.99
P/tB N/A
EV/EBITDA 9.85
EPS(TTM)7.77
EY6.9%
EPS(NY)9.71
Fwd EY8.62%
FCF(TTM)7.98
FCFY7.09%
OCF(TTM)10.1
OCFY8.97%
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
WACC9.79%
ROIC/WACC1.39
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 Year78.92%
Revenue Next 2Y42.12%
Revenue Next 3Y29.24%
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 Fundamental Analysis 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%.