ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
NYSE:ALSN - US01973R1014 - Common Stock
87.79 USD
-1.41 (-1.58%)
Taking everything into account, ALSN scores 7 out of 10 in our fundamental rating. ALSN was compared to 127 industry peers in the Machinery industry. ALSN gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
ALSN had positive earnings in each of the past 5 years.
Each year in the past 5 years ALSN had a positive operating cash flow.
1.2 Ratios
ALSN has a better Return On Assets (14.08%) than 92.13% of its industry peers.
Looking at the Return On Equity, with a value of 43.47%, ALSN belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.
The Return On Invested Capital of ALSN (16.74%) is better than 90.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALSN is significantly above the industry average of 10.48%.
The last Return On Invested Capital (16.74%) for ALSN is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 43.47% | ||
| ROIC | 16.74% |
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
With an excellent Profit Margin value of 23.81%, ALSN belongs to the best of the industry, outperforming 98.43% of the companies in the same industry.
ALSN's Profit Margin has been stable in the last couple of years.
ALSN has a better Operating Margin (31.72%) than 99.21% of its industry peers.
ALSN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 48.41%, ALSN belongs to the top of the industry, outperforming 90.55% of the companies in the same industry.
In the last couple of years the Gross Margin of ALSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.72% | ||
| PM (TTM) | 23.81% | ||
| GM | 48.41% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALSN is still 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.
Compared to 1 year ago, ALSN has an improved debt to assets ratio.
2.2 Solvency
ALSN has an Altman-Z score of 2.64. 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 has a Altman-Z score (2.64) which is in line with its industry peers.
ALSN has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as ALSN would need 3.67 years to pay back of all of its debts.
ALSN has a better Debt to FCF ratio (3.67) than 60.63% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that ALSN has dependencies on debt financing.
ALSN has a Debt to Equity ratio of 1.37. This is amonst the worse of the industry: ALSN underperforms 85.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.74
WACC9.61%
2.3 Liquidity
A Current Ratio of 3.36 indicates that ALSN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.36, ALSN belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
ALSN has a Quick Ratio of 2.64. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
ALSN has a Quick ratio of 2.64. This is amongst the best in the industry. ALSN outperforms 85.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
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 small growth in Revenue. The Revenue has grown by 2.70% in the last year.
The Revenue has been growing slightly by 3.63% on average over the past years.
EPS 1Y (TTM)14.29%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%7.51%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-0.25%
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 Y11.16%
EPS Next 2Y10.09%
EPS Next 3Y8.26%
EPS Next 5Y6.32%
Revenue Next Year-3.02%
Revenue Next 2Y-0.23%
Revenue Next 3Y2.87%
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
The Price/Earnings ratio is 9.98, which indicates a very decent valuation of ALSN.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 92.13% of the companies are valued more expensively.
ALSN is valuated cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.72, the valuation of ALSN can be described as reasonable.
ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 96.85% of the companies in the same industry.
ALSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 89.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 92.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.22 | ||
| EV/EBITDA | 8 |
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.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)0.9
EPS Next 2Y10.09%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 1.87, ALSN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.25, ALSN pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
11.68% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
ALSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.68%
EPS Next 2Y10.09%
EPS Next 3Y8.26%
NYSE:ALSN (8/28/2025, 1:57:27 PM)
87.79
-1.41 (-1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.88%
Inst Owner Change2.34%
Ins Owners0.58%
Ins Owner Change3.64%
Market Cap7.34B
Analysts74.67
Price Target100.64 (14.64%)
Short Float %4.2%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP11.68%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.81%
Min EPS beat(2)2.27%
Max EPS beat(2)7.34%
EPS beat(4)4
Avg EPS beat(4)5.8%
Min EPS beat(4)2.27%
Max EPS beat(4)10.3%
EPS beat(8)6
Avg EPS beat(8)6.76%
EPS beat(12)10
Avg EPS beat(12)9.84%
EPS beat(16)12
Avg EPS beat(16)8.81%
Revenue beat(2)1
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)9
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)0.19%
PT rev (1m)-3.58%
PT rev (3m)0.24%
EPS NQ rev (1m)-11.95%
EPS NQ rev (3m)-17.47%
EPS NY rev (1m)3.3%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)-1.71%
Revenue NQ rev (3m)-6.25%
Revenue NY rev (1m)-2.3%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.72 | ||
| P/S | 2.29 | ||
| P/FCF | 11.22 | ||
| P/OCF | 8.93 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8 |
EPS(TTM)8.8
EY10.02%
EPS(NY)10.07
Fwd EY11.47%
FCF(TTM)7.82
FCFY8.91%
OCF(TTM)9.83
OCFY11.2%
SpS38.27
BVpS20.96
TBVpS-13.65
PEG (NY)0.89
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 43.47% | ||
| ROCE | 20.55% | ||
| ROIC | 16.74% | ||
| ROICexc | 19.86% | ||
| ROICexgc | 65.24% | ||
| OM | 31.72% | ||
| PM (TTM) | 23.81% | ||
| GM | 48.41% | ||
| FCFM | 20.44% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 140% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 8.32 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 85.83% | ||
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 2.64 |
F-Score8
WACC9.61%
ROIC/WACC1.74
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)14.29%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%7.51%
EPS Next Y11.16%
EPS Next 2Y10.09%
EPS Next 3Y8.26%
EPS Next 5Y6.32%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-0.25%
Revenue Next Year-3.02%
Revenue Next 2Y-0.23%
Revenue Next 3Y2.87%
Revenue Next 5Y3.34%
EBIT growth 1Y7.52%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year14.22%
EBIT Next 3Y10.03%
EBIT Next 5Y7.04%
FCF growth 1Y8.64%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y7.87%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%