NYSE:ALSN stands out as a stock that provides good value for the fundamentals it showcases.

Consider ALLISON TRANSMISSION HOLDING (NYSE:ALSN) as a top value stock, identified by our stock screening tool. NYSE:ALSN shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Looking at the Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ALSN boasts a 8 out of 10:

• ALSN is valuated reasonably with a Price/Earnings ratio of 10.12.
• Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 89.15% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (28.27), we can say ALSN is valued rather cheaply.
• ALSN is valuated reasonably with a Price/Forward Earnings ratio of 8.56.
• Based on the Price/Forward Earnings ratio, ALSN is valued cheaply inside the industry as 92.25% of the companies are valued more expensively.
• ALSN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.18, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 84.50% of the companies listed 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 93.02% of the companies listed in the same industry.
• The excellent profitability rating of ALSN may justify a higher PE ratio.
• A more expensive valuation may be justified as ALSN's earnings are expected to grow with 13.39% in the coming years.

Looking at the Profitability

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:

• The Return On Assets of ALSN (13.29%) is better than 88.37% of its industry peers.
• With an excellent Return On Equity value of 50.07%, ALSN belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
• The Return On Invested Capital of ALSN (16.65%) is better than 89.92% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ALSN is above the industry average of 10.72%.
• The last Return On Invested Capital (16.65%) for ALSN is above the 3 year average (15.20%), which is a sign of increasing profitability.
• The Profit Margin of ALSN (21.80%) is better than 98.45% of its industry peers.
• ALSN has a better Operating Margin (29.94%) than 100.00% of its industry peers.
• ALSN has a better Gross Margin (47.84%) than 93.02% of its industry peers.

Exploring NYSE:ALSN's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ALSN has earned a 6 out of 10:

• The Debt to FCF ratio of ALSN is 3.69, which is a good value as it means it would take ALSN, 3.69 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.69, ALSN is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
• A Current Ratio of 2.51 indicates that ALSN has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.51, ALSN is in the better half of the industry, outperforming 65.89% of the companies in the same industry.
• ALSN has a better Quick ratio (1.95) than 75.97% of its industry peers.

How do we evaluate the Growth for NYSE:ALSN?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ALSN has achieved a 5 out of 10:

• ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.19%, which is quite impressive.
• ALSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.25% yearly.
• The Revenue has grown by 8.82% in the past year. This is quite good.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

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

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.