ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALSN • US01973R1014
108.7 USD
-2.86 (-2.56%)
At close: Jan 30, 2026
108.7 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
ALSN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 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 could make ALSN a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year ALSN was profitable.
- In the past year ALSN had a positive cash flow from operations.
- 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.
1.2 Ratios
- ALSN has a better Return On Assets (12.67%) than 90.91% of its industry peers.
- ALSN's Return On Equity of 37.97% is amongst the best of the industry. ALSN outperforms 96.21% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.60%, ALSN belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.20%.
| 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
- The Profit Margin of ALSN (22.78%) is better than 97.73% of its industry peers.
- ALSN's Profit Margin has been stable in the last couple of years.
- ALSN has a better Operating Margin (31.70%) than 100.00% of its industry peers.
- ALSN's Operating Margin has been stable in the last couple of years.
- ALSN's Gross Margin of 48.29% is amongst the best of the industry. ALSN outperforms 90.15% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALSN is still creating some value.
- Compared to 1 year ago, ALSN has less shares outstanding
- ALSN has less shares outstanding than it did 5 years ago.
- ALSN has a better debt/assets ratio than last year.
2.2 Solvency
- ALSN has an Altman-Z score of 2.90. 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.
- The Altman-Z score of ALSN (2.90) is comparable to the rest of the industry.
- 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 61.36% of the companies in the same industry.
- ALSN has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.30, ALSN is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.66
WACC9.42%
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.
- Looking at the Current ratio, with a value of 3.82, ALSN belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
- 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.
- ALSN has a Quick ratio of 3.06. This is amongst the best in the industry. ALSN outperforms 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
- ALSN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.61%.
- 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
- Based on estimates for the next years, ALSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.03% on average per year.
- 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-6.57%
EPS Next 2Y0.84%
EPS Next 3Y7.51%
EPS Next 5Y14.03%
Revenue Next Year-6.76%
Revenue Next 2Y-3.49%
Revenue Next 3Y1.45%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.32, the valuation of ALSN can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 91.67% of the companies listed in the same industry.
- ALSN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- A Price/Forward Earnings ratio of 12.86 indicates a correct valuation of ALSN.
- Based on the Price/Forward Earnings ratio, ALSN is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (25.57), we can say ALSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
- ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 85.61% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.41 | ||
| EV/EBITDA | 9.84 |
4.3 Compensation for Growth
- The excellent profitability rating of ALSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y0.84%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.97%, ALSN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.02, ALSN pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.97, ALSN pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
- On average, the dividend of ALSN grows each year by 10.94%, 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)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 2Y0.84%
EPS Next 3Y7.51%
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%.