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

Last update: Dec 29, 2023

ALLISON TRANSMISSION HOLDING (NYSE:ALSN) has caught the attention of dividend investors as a stock worth considering. NYSE:ALSN excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Examination for NYSE:ALSN

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:ALSN scores a 7 out of 10:

Compared to an average industry Dividend Yield of 1.70, ALSN pays a bit more dividend than its industry peers.
On average, the dividend of ALSN grows each year by 7.40%, which is quite nice.
ALSN has been paying a dividend for at least 10 years, so it has a reliable track record.
ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
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.

Health Analysis for NYSE:ALSN

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 64.39% 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.
ALSN has a Current ratio of 2.41. This is in the better half of the industry: ALSN outperforms 62.88% of its industry peers.
ALSN has a better Quick ratio (1.86) than 75.00% of its industry peers.

Evaluating Profitability: NYSE:ALSN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ALSN was assigned a score of 8 for profitability:

ALSN has a better Return On Assets (12.91%) than 90.15% of its industry peers.
With an excellent Return On Equity value of 54.39%, ALSN belongs to the best of the industry, outperforming 98.48% of the companies in the same industry.
ALSN's Return On Invested Capital of 15.77% is amongst the best of the industry. ALSN outperforms 87.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.54%.
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.
The Profit Margin of ALSN (21.63%) is better than 98.48% of its industry peers.
ALSN's Operating Margin of 29.75% is amongst the best of the industry. ALSN outperforms 100.00% of its industry peers.
ALSN's Gross Margin of 48.25% is amongst the best of the industry. ALSN outperforms 93.18% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of ALSN contains the most current fundamental analsysis.

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.