ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

131.23 USD
-3.12 (-2.32%)
At close:
131.23 USD
0 (0%)
After Hours:

This ALSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ALSN Profitability Analysis

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.
  • In the past 5 years ALSN always reported a positive cash flow from operatings.
ALSN Yearly Net Income VS EBIT VS OCF VS FCFALSN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

1.2 Ratios

  • ALSN's Return On Assets of 10.24% is amongst the best of the industry. ALSN outperforms 83.97% of its industry peers.
  • ALSN has a better Return On Equity (33.37%) than 95.42% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.63%, ALSN belongs to the best of the industry, outperforming 86.26% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ALSN is significantly above the industry average of 10.06%.
Industry RankSector Rank
ROA 10.24%
ROE 33.37%
ROIC 13.63%
ROA(3y)12.45%
ROA(5y)11.72%
ROE(3y)44.08%
ROE(5y)52.54%
ROIC(3y)15.41%
ROIC(5y)14.87%
ALSN Yearly ROA, ROE, ROICALSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • ALSN has a Profit Margin of 20.70%. This is amongst the best in the industry. ALSN outperforms 96.95% of its industry peers.
  • In the last couple of years the Profit Margin of ALSN has grown nicely.
  • The Operating Margin of ALSN (32.03%) is better than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of ALSN has grown nicely.
  • ALSN has a Gross Margin of 48.60%. This is amongst the best in the industry. ALSN outperforms 87.79% of its industry peers.
  • In the last couple of years the Gross Margin of ALSN has remained more or less at the same level.
Industry RankSector Rank
OM 32.03%
PM (TTM) 20.7%
GM 48.6%
OM growth 3Y4.52%
OM growth 5Y4.45%
PM growth 3Y2.58%
PM growth 5Y7.57%
GM growth 3Y1.24%
GM growth 5Y0.13%
ALSN Yearly Profit, Operating, Gross MarginsALSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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6

2. ALSN Health Analysis

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.
  • ALSN has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ALSN has less shares outstanding
  • The debt/assets ratio for ALSN is higher compared to a year ago.
ALSN Yearly Shares OutstandingALSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ALSN Yearly Total Debt VS Total AssetsALSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 2.95 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.95, ALSN is in line with its industry, outperforming 49.62% of the companies in the same industry.
  • The Debt to FCF ratio of ALSN is 4.37, which is a neutral value as it means it would take ALSN, 4.37 years of fcf income to pay off all of its debts.
  • ALSN has a Debt to FCF ratio (4.37) which is in line with its industry peers.
  • ALSN has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ALSN (1.55) is worse than 83.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.95
ROIC/WACC1.34
WACC10.19%
ALSN Yearly LT Debt VS Equity VS FCFALSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 4.85 indicates that ALSN has no problem at all paying its short term obligations.
  • ALSN's Current ratio of 4.85 is amongst the best of the industry. ALSN outperforms 89.31% of its industry peers.
  • ALSN has a Quick Ratio of 4.17. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • ALSN's Quick ratio of 4.17 is amongst the best of the industry. ALSN outperforms 90.08% of its industry peers.
Industry RankSector Rank
Current Ratio 4.85
Quick Ratio 4.17
ALSN Yearly Current Assets VS Current LiabilitesALSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALSN Growth Analysis

3.1 Past

  • The earnings per share for ALSN have decreased by -4.81% in the last year.
  • ALSN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.74% yearly.
  • The Revenue has decreased by -6.67% in the past year.
  • Measured over the past years, ALSN shows a small growth in Revenue. The Revenue has been growing by 7.66% on average per year.
EPS 1Y (TTM)-4.81%
EPS 3Y12.67%
EPS 5Y22.74%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%

3.2 Future

  • ALSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.19% yearly.
  • The Revenue is expected to grow by 17.97% on average over the next years. This is quite good.
EPS Next Y14.91%
EPS Next 2Y18.36%
EPS Next 3Y19.03%
EPS Next 5Y17.19%
Revenue Next Year91.8%
Revenue Next 2Y42.11%
Revenue Next 3Y28.99%
Revenue Next 5Y17.97%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ALSN Yearly Revenue VS EstimatesALSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
ALSN Yearly EPS VS EstimatesALSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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7

4. ALSN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 16.59, the valuation of ALSN can be described as correct.
  • Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 82.44% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (26.64), we can say ALSN is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 14.44, which indicates a correct valuation of ALSN.
  • ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 83.97% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, ALSN is valued a bit cheaper.
Industry RankSector Rank
PE 16.59
Fwd PE 14.44
ALSN Price Earnings VS Forward Price EarningsALSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 77.86% of the companies in the same industry are more expensive than ALSN, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 83.21% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.5
EV/EBITDA 11.55
ALSN Per share dataALSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ALSN's earnings are expected to grow with 19.03% in the coming years.
PEG (NY)1.11
PEG (5Y)0.73
EPS Next 2Y18.36%
EPS Next 3Y19.03%

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6

5. ALSN Dividend Analysis

5.1 Amount

  • ALSN has a yearly dividend return of 0.85%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.13, ALSN pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, ALSN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.85%

5.2 History

  • On average, the dividend of ALSN grows each year by 9.76%, 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.
Dividend Growth(5Y)9.76%
Div Incr Years6
Div Non Decr Years13
ALSN Yearly Dividends per shareALSN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • ALSN pays out 14.61% of its income as dividend. This is a sustainable payout ratio.
  • ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.61%
EPS Next 2Y18.36%
EPS Next 3Y19.03%
ALSN Yearly Income VS Free CF VS DividendALSN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
ALSN Dividend Payout.ALSN Dividend Payout, showing the Payout Ratio.ALSN Dividend Payout.PayoutRetained Earnings

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ALSN Fundamentals: All Metrics, Ratios and Statistics

ALLISON TRANSMISSION HOLDING

NYSE:ALSN (5/1/2026, 8:09:22 PM)

After market: 131.23 0 (0%)

131.23

-3.12 (-2.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength85.09
Industry Growth81.99
Earnings (Last)02-23
Earnings (Next)05-04
Inst Owners103.41%
Inst Owner Change-0.34%
Ins Owners0.66%
Ins Owner Change6.21%
Market Cap10.91B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target124.99 (-4.76%)
Short Float %3.07%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 0.85%
Yearly Dividend1.08
Dividend Growth(5Y)9.76%
DP14.61%
Div Incr Years6
Div Non Decr Years13
Ex-Date03-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.86%
Min EPS beat(2)-10.27%
Max EPS beat(2)2.55%
EPS beat(4)3
Avg EPS beat(4)2.04%
Min EPS beat(4)-10.27%
Max EPS beat(4)8.53%
EPS beat(8)6
Avg EPS beat(8)2.92%
EPS beat(12)9
Avg EPS beat(12)7.24%
EPS beat(16)12
Avg EPS beat(16)7.36%
Revenue beat(2)0
Avg Revenue beat(2)-4.97%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-1.74%
Revenue beat(12)7
Avg Revenue beat(12)-1%
Revenue beat(16)10
Avg Revenue beat(16)-0.54%
PT rev (1m)12%
PT rev (3m)24.27%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)14.94%
EPS NY rev (1m)-6.4%
EPS NY rev (3m)7.57%
Revenue NQ rev (1m)10.85%
Revenue NQ rev (3m)103.09%
Revenue NY rev (1m)7.2%
Revenue NY rev (3m)91.99%
Valuation
Industry RankSector Rank
PE 16.59
Fwd PE 14.44
P/S 3.62
P/FCF 16.5
P/OCF 13.05
P/B 5.84
P/tB N/A
EV/EBITDA 11.55
EPS(TTM)7.91
EY6.03%
EPS(NY)9.09
Fwd EY6.93%
FCF(TTM)7.95
FCFY6.06%
OCF(TTM)10.06
OCFY7.66%
SpS36.21
BVpS22.46
TBVpS-12.05
PEG (NY)1.11
PEG (5Y)0.73
Graham Number63.2227 (-51.82%)
Profitability
Industry RankSector Rank
ROA 10.24%
ROE 33.37%
ROCE 17.15%
ROIC 13.63%
ROICexc 18.57%
ROICexgc 60.91%
OM 32.03%
PM (TTM) 20.7%
GM 48.6%
FCFM 21.96%
ROA(3y)12.45%
ROA(5y)11.72%
ROE(3y)44.08%
ROE(5y)52.54%
ROIC(3y)15.41%
ROIC(5y)14.87%
ROICexc(3y)18.87%
ROICexc(5y)17.21%
ROICexgc(3y)66.28%
ROICexgc(5y)64.07%
ROCE(3y)19.39%
ROCE(5y)18.71%
ROICexgc growth 3Y-0.25%
ROICexgc growth 5Y1.86%
ROICexc growth 3Y5.99%
ROICexc growth 5Y10.58%
OM growth 3Y4.52%
OM growth 5Y4.45%
PM growth 3Y2.58%
PM growth 5Y7.57%
GM growth 3Y1.24%
GM growth 5Y0.13%
F-Score6
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Debt/EBITDA 2.65
Cap/Depr 141.13%
Cap/Sales 5.81%
Interest Coverage 8.03
Cash Conversion 76.84%
Profit Quality 106.1%
Current Ratio 4.85
Quick Ratio 4.17
Altman-Z 2.95
F-Score6
WACC10.19%
ROIC/WACC1.34
Cap/Depr(3y)113.49%
Cap/Depr(5y)112.98%
Cap/Sales(3y)4.79%
Cap/Sales(5y)5.54%
Profit Quality(3y)98.01%
Profit Quality(5y)98.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.81%
EPS 3Y12.67%
EPS 5Y22.74%
EPS Q2Q%-19.4%
EPS Next Y14.91%
EPS Next 2Y18.36%
EPS Next 3Y19.03%
EPS Next 5Y17.19%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year91.8%
Revenue Next 2Y42.11%
Revenue Next 3Y28.99%
Revenue Next 5Y17.97%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year55.34%
EBIT Next 3Y25.67%
EBIT Next 5Y18.39%
FCF growth 1Y0.46%
FCF growth 3Y10.49%
FCF growth 5Y8.19%
OCF growth 1Y4.37%
OCF growth 3Y8.36%
OCF growth 5Y8.31%

ALLISON TRANSMISSION HOLDING / ALSN Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ALLISON TRANSMISSION HOLDING?

ChartMill assigns a fundamental rating of 7 / 10 to ALSN.


What is the valuation status of ALLISON TRANSMISSION HOLDING (ALSN) stock?

ChartMill assigns a valuation rating of 7 / 10 to ALLISON TRANSMISSION HOLDING (ALSN). This can be considered as Undervalued.


How profitable is ALLISON TRANSMISSION HOLDING (ALSN) stock?

ALLISON TRANSMISSION HOLDING (ALSN) has a profitability rating of 9 / 10.


What is the financial health of ALLISON TRANSMISSION HOLDING (ALSN) stock?

The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 6 / 10.


What is the earnings growth outlook for ALLISON TRANSMISSION HOLDING?

The Earnings per Share (EPS) of ALLISON TRANSMISSION HOLDING (ALSN) is expected to grow by 14.91% in the next year.