ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

113.39 USD
+0.57 (+0.51%)
At close:
113.39 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.
  • Each year in the past 5 years ALSN has been profitable.
  • ALSN had a positive operating cash flow in each of the past 5 years.
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 82.44% of its industry peers.
  • Looking at the Return On Equity, with a value of 33.37%, ALSN belongs to the top of the industry, outperforming 95.42% of the companies in the same industry.
  • ALSN has a Return On Invested Capital of 13.63%. This is amongst the best in the industry. ALSN outperforms 84.73% 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 10.18%.
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

  • With an excellent Profit Margin value of 20.70%, ALSN belongs to the best of the industry, outperforming 97.71% of the companies in the same industry.
  • ALSN's Profit Margin has improved in the last couple of years.
  • ALSN has a better Operating Margin (32.03%) than 100.00% of its industry peers.
  • ALSN's Operating Margin has improved in the last couple of years.
  • ALSN has a Gross Margin of 48.60%. This is amongst the best in the industry. ALSN outperforms 89.31% of its industry peers.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
  • The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
  • 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 2.69 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ALSN has a Altman-Z score (2.69) which is comparable to the rest of the 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.
  • With a Debt to FCF ratio value of 4.37, ALSN perfoms like the industry average, outperforming 57.25% 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 2.69
ROIC/WACC1.5
WACC9.08%
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's Quick ratio of 4.17 is amongst the best of the industry. ALSN outperforms 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

More info and screens

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

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%.
  • ALSN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.30% yearly.
  • Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -6.67% in the last 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)-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 Year56.05%
Revenue Next 2Y27.07%
Revenue Next 3Y29.97%
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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

8

4. ALSN Valuation Analysis

4.1 Price/Earnings Ratio

  • ALSN is valuated correctly with a Price/Earnings ratio of 14.59.
  • Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 87.02% of the companies are valued more expensively.
  • ALSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
  • ALSN is valuated reasonably with a Price/Forward Earnings ratio of 11.68.
  • Based on the Price/Forward Earnings ratio, ALSN is valued cheaply inside the industry as 90.84% of the companies are valued more expensively.
  • ALSN is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.59
Fwd PE 11.68
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

  • ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 80.92% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaper than 87.02% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.21
EV/EBITDA 9.87
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)0.58
PEG (5Y)0.65
EPS Next 2Y17.6%
EPS Next 3Y17.96%

More info and screens

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

7

5. ALSN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.03%, ALSN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.18, ALSN pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 1.03, ALSN pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

  • The dividend of ALSN is nicely growing with an annual growth rate of 9.76%!
  • 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 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 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

More info and screens

Find the best dividend stocksShow peers with best dividend

ALSN Fundamentals: All Metrics, Ratios and Statistics

ALLISON TRANSMISSION HOLDING

NYSE:ALSN (3/16/2026, 8:07:33 PM)

After market: 113.39 0 (0%)

113.39

+0.57 (+0.51%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners103.99%
Inst Owner Change0.95%
Ins Owners0.62%
Ins Owner Change5.92%
Market Cap9.39B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target111.6 (-1.58%)
Short Float %2.56%
Short Ratio2.32
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend1.08
Dividend Growth(5Y)9.76%
DP14.61%
Div Incr Years5
Div Non Decr Years12
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)0%
PT rev (3m)13.51%
EPS NQ rev (1m)11.15%
EPS NQ rev (3m)13.03%
EPS NY rev (1m)8.93%
EPS NY rev (3m)15.87%
Revenue NQ rev (1m)78%
Revenue NQ rev (3m)79.21%
Revenue NY rev (1m)54.68%
Revenue NY rev (3m)56.1%
Valuation
Industry RankSector Rank
PE 14.59
Fwd PE 11.68
P/S 3.12
P/FCF 14.21
P/OCF 11.23
P/B 5.03
P/tB N/A
EV/EBITDA 9.87
EPS(TTM)7.77
EY6.85%
EPS(NY)9.71
Fwd EY8.56%
FCF(TTM)7.98
FCFY7.04%
OCF(TTM)10.1
OCFY8.9%
SpS36.35
BVpS22.55
TBVpS-12.1
PEG (NY)0.58
PEG (5Y)0.65
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 2.69
F-Score6
WACC9.08%
ROIC/WACC1.5
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 Year56.05%
Revenue Next 2Y27.07%
Revenue Next 3Y29.97%
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.


What is the profitability of ALSN stock?

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


How financially healthy is ALLISON TRANSMISSION HOLDING?

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


Is the dividend of ALLISON TRANSMISSION HOLDING sustainable?

The dividend rating of ALLISON TRANSMISSION HOLDING (ALSN) is 7 / 10 and the dividend payout ratio is 14.61%.