ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis

NYSE:ALSN • US01973R1014

118.85 USD
+1.07 (+0.91%)
At close: Feb 20, 2026
118.85 USD
0 (0%)
After Hours: 2/20/2026, 6:40:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, ALSN scores 7 out of 10 in our fundamental rating. ALSN was compared to 131 industry peers in the Machinery industry. ALSN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALSN. These ratings would make ALSN suitable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ALSN was profitable.
  • ALSN had a positive operating cash flow in the past year.
  • In the past 5 years ALSN has always been profitable.
  • 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 200M 400M 600M 800M

1.2 Ratios

  • ALSN has a better Return On Assets (12.67%) than 90.08% of its industry peers.
  • ALSN's Return On Equity of 37.97% is amongst the best of the industry. ALSN outperforms 96.18% of its industry peers.
  • ALSN has a Return On Invested Capital of 15.60%. This is amongst the best in the industry. ALSN outperforms 90.84% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ALSN is significantly above the industry average of 10.17%.
Industry RankSector Rank
ROA 12.67%
ROE 37.97%
ROIC 15.6%
ROA(3y)12.82%
ROA(5y)11.01%
ROE(3y)53.2%
ROE(5y)53.78%
ROIC(3y)16.17%
ROIC(5y)14.56%
ALSN Yearly ROA, ROE, ROICALSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

  • ALSN has a Profit Margin of 22.78%. This is amongst the best in the industry. ALSN outperforms 98.47% of its industry peers.
  • In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 31.70%, ALSN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • ALSN's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of ALSN (48.29%) is better than 90.08% of its industry peers.
  • ALSN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 31.7%
PM (TTM) 22.78%
GM 48.29%
OM growth 3Y3.47%
OM growth 5Y-1.48%
PM growth 3Y7.2%
PM growth 5Y0.25%
GM growth 3Y-0.12%
GM growth 5Y-1.71%
ALSN Yearly Profit, Operating, Gross MarginsALSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALSN is creating value.
  • The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
  • Compared to 5 years ago, ALSN has less shares outstanding
  • ALSN has a better debt/assets ratio than last year.
ALSN Yearly Shares OutstandingALSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 2.99 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ALSN has a Altman-Z score (2.99) which is comparable to the rest of the industry.
  • ALSN has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as ALSN would need 3.82 years to pay back of all of its debts.
  • The Debt to FCF ratio of ALSN (3.82) is better than 61.07% of its industry peers.
  • A Debt/Equity ratio of 1.30 is on the high side and indicates that ALSN has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.30, ALSN is not doing good in the industry: 81.68% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 3.82
Altman-Z 2.99
ROIC/WACC1.74
WACC8.98%
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 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • ALSN has a Current Ratio of 3.82. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • ALSN's Current ratio of 3.82 is amongst the best of the industry. ALSN outperforms 86.26% of its industry peers.
  • ALSN has a Quick Ratio of 3.06. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of ALSN (3.06) is better than 87.79% of its industry peers.
Industry RankSector Rank
Current Ratio 3.82
Quick Ratio 3.06
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 500M 1B 1.5B

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

5

3. Growth

3.1 Past

  • The earnings per share for ALSN have decreased by -0.61% in the last year.
  • The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
  • Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -4.21% in the last year.
  • ALSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.63% yearly.
EPS 1Y (TTM)-0.61%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%-28.19%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.03% on average over the next years. This is quite good.
  • Based on estimates for the next years, ALSN will show a quite strong growth in Revenue. The Revenue will grow by 14.49% on average per year.
EPS Next Y-6.04%
EPS Next 2Y3.57%
EPS Next 3Y8.82%
EPS Next 5Y14.03%
Revenue Next Year-6.76%
Revenue Next 2Y-3.02%
Revenue Next 3Y1.83%
Revenue Next 5Y14.49%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 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 5 10 15

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.56, ALSN is valued correctly.
  • 90.08% of the companies in the same industry are more expensive than ALSN, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (26.99), we can say ALSN is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 13.33, the valuation of ALSN can be described as correct.
  • Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 91.60% of the companies in the same industry.
  • ALSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 14.56
Fwd PE 13.33
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

  • Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaper than 85.50% of the companies in the same industry.
  • 87.02% of the companies in the same industry are more expensive than ALSN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.75
EV/EBITDA 10.31
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

  • ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y3.57%
EPS Next 3Y8.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • ALSN has a yearly dividend return of 0.93%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.17, ALSN pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.93, ALSN pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 0.93%

5.2 History

  • The dividend of ALSN is nicely growing with an annual growth rate of 10.94%!
  • 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.
Dividend Growth(5Y)10.94%
Div Incr Years5
Div Non Decr Years12
ALSN Yearly Dividends per shareALSN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 12.88% 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.
DP12.88%
EPS Next 2Y3.57%
EPS Next 3Y8.82%
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 200M 400M 600M
ALSN Dividend Payout.ALSN Dividend Payout, showing the Payout Ratio.ALSN Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ALLISON TRANSMISSION HOLDING

NYSE:ALSN (2/20/2026, 6:40:00 PM)

After market: 118.85 0 (0%)

118.85

+1.07 (+0.91%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29
Earnings (Next)02-23
Inst Owners104.77%
Inst Owner Change-0.58%
Ins Owners0.59%
Ins Owner Change-0.25%
Market Cap9.89B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts74.12
Price Target111.6 (-6.1%)
Short Float %2.43%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 0.93%
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP12.88%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4%
Min EPS beat(2)-10.27%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)0.66%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)5.63%
EPS beat(12)9
Avg EPS beat(12)8.1%
EPS beat(16)12
Avg EPS beat(16)8.33%
Revenue beat(2)1
Avg Revenue beat(2)-4.65%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)0.55%
Revenue beat(8)5
Avg Revenue beat(8)-1.46%
Revenue beat(12)8
Avg Revenue beat(12)-0.65%
Revenue beat(16)11
Avg Revenue beat(16)-0.13%
PT rev (1m)10.96%
PT rev (3m)9.62%
EPS NQ rev (1m)1.86%
EPS NQ rev (3m)4.78%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 14.56
Fwd PE 13.33
P/S 3.22
P/FCF 15.75
P/OCF 12.3
P/B 5.37
P/tB N/A
EV/EBITDA 10.31
EPS(TTM)8.16
EY6.87%
EPS(NY)8.91
Fwd EY7.5%
FCF(TTM)7.55
FCFY6.35%
OCF(TTM)9.66
OCFY8.13%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.31
Graham Number63.73
Profitability
Industry RankSector Rank
ROA 12.67%
ROE 37.97%
ROCE 19.16%
ROIC 15.6%
ROICexc 18.97%
ROICexgc 61.62%
OM 31.7%
PM (TTM) 22.78%
GM 48.29%
FCFM 20.46%
ROA(3y)12.82%
ROA(5y)11.01%
ROE(3y)53.2%
ROE(5y)53.78%
ROIC(3y)16.17%
ROIC(5y)14.56%
ROICexc(3y)18.31%
ROICexc(5y)16.12%
ROICexgc(3y)68.06%
ROICexgc(5y)64.53%
ROCE(3y)19.85%
ROCE(5y)17.88%
ROICexgc growth 3Y4.74%
ROICexgc growth 5Y-6.1%
ROICexc growth 3Y12.45%
ROICexc growth 5Y1.03%
OM growth 3Y3.47%
OM growth 5Y-1.48%
PM growth 3Y7.2%
PM growth 5Y0.25%
GM growth 3Y-0.12%
GM growth 5Y-1.71%
F-Score7
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 3.82
Debt/EBITDA 2.18
Cap/Depr 143.09%
Cap/Sales 5.73%
Interest Coverage 8.11
Cash Conversion 73.36%
Profit Quality 89.84%
Current Ratio 3.82
Quick Ratio 3.06
Altman-Z 2.99
F-Score7
WACC8.98%
ROIC/WACC1.74
Cap/Depr(3y)102.36%
Cap/Depr(5y)100.29%
Cap/Sales(3y)4.86%
Cap/Sales(5y)5.48%
Profit Quality(3y)93.4%
Profit Quality(5y)106.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.61%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%-28.19%
EPS Next Y-6.04%
EPS Next 2Y3.57%
EPS Next 3Y8.82%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.76%
Revenue Next 2Y-3.02%
Revenue Next 3Y1.83%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year8.28%
EBIT Next 3Y11.54%
EBIT Next 5Y15.21%
FCF growth 1Y3.8%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y4.42%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%

ALLISON TRANSMISSION HOLDING / ALSN 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.


What is the profitability of ALSN stock?

ALLISON TRANSMISSION HOLDING (ALSN) has a profitability rating of 8 / 10.


How financially healthy is ALLISON TRANSMISSION HOLDING?

The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 7 / 10.


Is the dividend of ALLISON TRANSMISSION HOLDING sustainable?

The dividend rating of ALLISON TRANSMISSION HOLDING (ALSN) is 6 / 10 and the dividend payout ratio is 12.88%.