ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALSN - US01973R1014 - Common Stock
98.69 USD
-0.73 (-0.73%)
98.69 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ALSN. ALSN was compared to 130 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. ALSN may be a bit undervalued, certainly considering the very reasonable score on growth ALSN also has an excellent dividend rating. These ratings would make ALSN suitable for value and dividend and quality investing!
1. Profitability
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.
Each year in the past 5 years ALSN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.67%, ALSN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Equity value of 37.97%, ALSN belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.60%, ALSN belongs to the best of the industry, outperforming 88.46% 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 10.30%.
| Industry Rank | Sector 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%
1.3 Margins
ALSN has a Profit Margin of 22.78%. This is amongst the best in the industry. ALSN outperforms 98.46% 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.
With an excellent Gross Margin value of 48.29%, ALSN belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
In the last couple of years the Gross Margin of ALSN has declined.
| Industry Rank | Sector 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%
2. Health
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.
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
Compared to 1 year ago, ALSN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALSN has a Altman-Z score (2.74) which is in line with its industry peers.
The Debt to FCF ratio of ALSN is 3.82, which is a good value as it means it would take ALSN, 3.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.82, ALSN is in the better half of the industry, outperforming 62.31% of the companies in the same industry.
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: 83.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.66
WACC9.42%
2.3 Liquidity
A Current Ratio of 3.82 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a better Current ratio (3.82) than 86.92% of its industry peers.
A Quick Ratio of 3.06 indicates that ALSN has no problem at all paying its short term obligations.
The Quick ratio of ALSN (3.06) is better than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
The earnings per share for ALSN have decreased by -0.61% in the last year.
ALSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.10% yearly.
The Revenue has decreased by -4.21% in the past year.
The Revenue has been growing slightly by 3.63% on average over the past years.
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
ALSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.03% yearly.
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-6.47%
EPS Next 2Y0.42%
EPS Next 3Y6.47%
EPS Next 5Y14.03%
Revenue Next Year-6.89%
Revenue Next 2Y-3.46%
Revenue Next 3Y0.3%
Revenue Next 5Y14.49%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALSN is valuated correctly with a Price/Earnings ratio of 12.09.
Based on the Price/Earnings ratio, ALSN is valued cheaper than 93.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.55. ALSN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.78, the valuation of ALSN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 90.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 86.92% of the companies in the same industry.
86.15% of the companies in the same industry are more expensive than ALSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| EV/EBITDA | 8.91 |
4.3 Compensation for Growth
The excellent profitability rating of ALSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y0.42%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.00, ALSN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.09, ALSN pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of ALSN is nicely growing with an annual growth rate of 10.94%!
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)10.94%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
ALSN pays out 12.88% 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.
DP12.88%
EPS Next 2Y0.42%
EPS Next 3Y6.47%
98.69
-0.73 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.76%
Inst Owner Change-0.56%
Ins Owners0.59%
Ins Owner Change0%
Market Cap8.21B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts72.94
Price Target98.32 (-0.37%)
Short Float %3.98%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP12.88%
Div Incr Years5
Div Non Decr Years12
Ex-Date
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)-3.43%
PT rev (3m)-2.31%
EPS NQ rev (1m)1.95%
EPS NQ rev (3m)-10.17%
EPS NY rev (1m)-7.83%
EPS NY rev (3m)-15.86%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 11.78 | ||
| P/S | 2.68 | ||
| P/FCF | 13.08 | ||
| P/OCF | 10.22 | ||
| P/B | 4.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.91 |
EPS(TTM)8.16
EY8.27%
EPS(NY)8.38
Fwd EY8.49%
FCF(TTM)7.55
FCFY7.65%
OCF(TTM)9.66
OCFY9.79%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.09
Graham Number63.73
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.74 |
F-Score7
WACC9.42%
ROIC/WACC1.66
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-6.47%
EPS Next 2Y0.42%
EPS Next 3Y6.47%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.89%
Revenue Next 2Y-3.46%
Revenue Next 3Y0.3%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year8.47%
EBIT Next 3Y5.85%
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.
Can you provide the valuation status for ALLISON TRANSMISSION HOLDING?
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.
What are the PE and PB ratios of ALLISON TRANSMISSION HOLDING (ALSN) stock?
The Price/Earnings (PE) ratio for ALLISON TRANSMISSION HOLDING (ALSN) is 12.09 and the Price/Book (PB) ratio is 4.46.
What is the expected EPS growth for ALLISON TRANSMISSION HOLDING (ALSN) stock?
The Earnings per Share (EPS) of ALLISON TRANSMISSION HOLDING (ALSN) is expected to decline by -6.47% in the next year.