ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

117.06 USD
-1.78 (-1.5%)
At close:
117.06 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

  • ALSN had positive earnings in the past year.
  • In the past year ALSN had a positive cash flow from operations.
  • ALSN had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ALSN had a positive operating cash flow.
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 has a better Return On Assets (10.24%) than 83.97% of its industry peers.
  • The Return On Equity of ALSN (33.37%) is better than 95.42% of its industry peers.
  • The Return On Invested Capital of ALSN (13.63%) is better than 85.50% of its industry peers.
  • ALSN had an Average Return On Invested Capital over the past 3 years of 15.41%. This is significantly above the industry average of 10.04%.
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's Profit Margin of 20.70% is amongst the best of 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.
  • ALSN's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 48.60%, ALSN belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
  • ALSN's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALSN is creating some value.
  • ALSN has less shares outstanding than it did 1 year ago.
  • ALSN has less shares outstanding than it did 5 years ago.
  • ALSN has a worse debt/assets ratio than last year.
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

  • ALSN has an Altman-Z score of 2.74. This is not the best score and indicates that ALSN is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ALSN has a Altman-Z score (2.74) which is in line with its industry peers.
  • ALSN has a debt to FCF ratio of 4.37. This is a neutral value as ALSN would need 4.37 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 4.37, ALSN perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
  • A Debt/Equity ratio of 1.55 is on the high side and indicates that ALSN has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.55, ALSN is doing worse than 83.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.74
ROIC/WACC1.39
WACC9.83%
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.
  • Looking at the Current ratio, with a value of 4.85, ALSN belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
  • A Quick Ratio of 4.17 indicates that ALSN has no problem at all paying its short term obligations.
  • ALSN has a better Quick ratio (4.17) than 90.84% 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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5

3. ALSN Growth Analysis

3.1 Past

  • ALSN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.50%.
  • Measured over the past years, ALSN shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.30% on average per year.
  • ALSN shows a decrease in Revenue. In the last year, the revenue decreased by -6.67%.
  • The Revenue has been growing slightly by 7.66% on average over the past years.
EPS 1Y (TTM)-6.5%
EPS 3Y12%
EPS 5Y22.3%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%

3.2 Future

  • Based on estimates for the next years, ALSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.61% on average per year.
  • ALSN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.97% yearly.
EPS Next Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue Next Year80.29%
Revenue Next 2Y42.04%
Revenue Next 3Y28.86%
Revenue Next 5Y17.97%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 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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8

4. ALSN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 15.07, which indicates a correct valuation of ALSN.
  • Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 84.73% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, ALSN is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 12.05, ALSN is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 89.31% of the companies listed in the same industry.
  • ALSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.05.
Industry RankSector Rank
PE 15.07
Fwd PE 12.05
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 a bit cheaper than the industry average as 77.86% of the companies are valued more expensively.
  • 86.26% 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 14.67
EV/EBITDA 10.19
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 17.96% in the coming years.
PEG (NY)0.6
PEG (5Y)0.68
EPS Next 2Y17.6%
EPS Next 3Y17.96%

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7

5. ALSN Dividend Analysis

5.1 Amount

  • ALSN has a Yearly Dividend Yield of 1.01%.
  • ALSN's Dividend Yield is a higher than the industry average which is at 1.21.
  • Compared to an average S&P500 Dividend Yield of 1.89, ALSN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.01%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y17.6%
EPS Next 3Y17.96%
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 (4/2/2026, 8:07:47 PM)

After market: 117.06 0 (0%)

117.06

-1.78 (-1.5%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners103.99%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change6.06%
Market Cap9.69B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target124.99 (6.77%)
Short Float %2.35%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 1.01%
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)0.47%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)2.14%
EPS beat(12)9
Avg EPS beat(12)6.72%
EPS beat(16)12
Avg EPS beat(16)6.97%
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)2.83%
EPS NQ rev (3m)18.01%
EPS NY rev (1m)0%
EPS NY rev (3m)16.8%
Revenue NQ rev (1m)9.92%
Revenue NQ rev (3m)83.22%
Revenue NY rev (1m)15.54%
Revenue NY rev (3m)80%
Valuation
Industry RankSector Rank
PE 15.07
Fwd PE 12.05
P/S 3.22
P/FCF 14.67
P/OCF 11.6
P/B 5.19
P/tB N/A
EV/EBITDA 10.19
EPS(TTM)7.77
EY6.64%
EPS(NY)9.71
Fwd EY8.3%
FCF(TTM)7.98
FCFY6.82%
OCF(TTM)10.1
OCFY8.62%
SpS36.35
BVpS22.55
TBVpS-12.1
PEG (NY)0.6
PEG (5Y)0.68
Graham Number62.78
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 2.74
F-Score6
WACC9.83%
ROIC/WACC1.39
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)-6.5%
EPS 3Y12%
EPS 5Y22.3%
EPS Q2Q%-19.4%
EPS Next Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year80.29%
Revenue Next 2Y42.04%
Revenue Next 3Y28.86%
Revenue Next 5Y17.97%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year50.4%
EBIT Next 3Y24.57%
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 8 / 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 24.97% in the next year.