Is NYSE:ALSN a Good Fit for Dividend Investing?

Take a closer look at ALLISON TRANSMISSION HOLDING (NYSE:ALSN), a stock of interest to dividend investors uncovered by our stock screener. NYSE:ALSN excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

How do we evaluate the Dividend for NYSE:ALSN?

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:ALSN has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.96, ALSN pays a bit more dividend than its industry peers.
• On average, the dividend of ALSN grows each year by 7.41%, which is quite nice.
• 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.
• 13.12% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
• ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ALSN has earned a 5 out of 10:

• ALSN has a better Debt to FCF ratio (4.16) than 69.23% of its industry peers.
• ALSN has a Current Ratio of 2.15. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
• ALSN has a Quick ratio of 1.59. This is in the better half of the industry: ALSN outperforms 70.77% of its industry peers.

Profitability Examination for NYSE:ALSN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ALSN scores a 8 out of 10:

• With an excellent Return On Assets value of 12.87%, ALSN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• ALSN has a better Return On Equity (59.19%) than 99.23% of its industry peers.
• ALSN has a better Return On Invested Capital (15.87%) than 88.46% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for ALSN is above the industry average of 9.96%.
• The last Return On Invested Capital (15.87%) for ALSN is above the 3 year average (12.92%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 21.17%, ALSN belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
• The Operating Margin of ALSN (29.37%) is better than 100.00% of its industry peers.
• With an excellent Gross Margin value of 47.70%, ALSN belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.

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For an up to date full fundamental analysis you can check the fundamental report of ALSN

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.