Why NYSE:ALSN provides a good dividend, while having solid fundamentals.

Last update: Dec 7, 2023

Consider ALLISON TRANSMISSION HOLDING (NYSE:ALSN) as a top pick for dividend investors, identified by our stock screening tool. NYSE:ALSN shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Insights: NYSE:ALSN

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:ALSN earns a 7 out of 10:

ALSN's Dividend Yield is a higher than the industry average which is at 1.84.
The dividend of ALSN is nicely growing with an annual growth rate of 7.40%!
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.
12.73% 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 Debt to FCF ratio of 4.14. This is in the better half of the industry: ALSN outperforms 64.12% of its industry peers.
ALSN has a Current Ratio of 2.41. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALSN (2.41) is better than 63.36% of its industry peers.
The Quick ratio of ALSN (1.86) is better than 75.57% of its industry peers.

Profitability Insights: NYSE:ALSN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ALSN has achieved a 8:

ALSN has a Return On Assets of 12.91%. This is amongst the best in the industry. ALSN outperforms 90.08% of its industry peers.
Looking at the Return On Equity, with a value of 54.39%, ALSN belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.77%, ALSN belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.32%.
The last Return On Invested Capital (15.77%) 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 21.63%, ALSN belongs to the top of the industry, outperforming 98.47% of the companies in the same industry.
ALSN has a Operating Margin of 29.75%. This is amongst the best in the industry. ALSN outperforms 100.00% of its industry peers.
ALSN has a better Gross Margin (48.25%) than 93.89% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of ALSN for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.