ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

131.34 USD
+1.6 (+1.23%)
At close:
131.34 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.
  • ALSN had a positive operating cash flow in the past year.
  • Each year in the past 5 years ALSN has 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 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 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 10.00%.
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.
  • ALSN's Operating Margin of 32.03% is amongst the best of the industry. ALSN outperforms 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 88.55% of its industry peers.
  • In the last couple of years the Gross Margin of ALSN has remained more or less at the same level.
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.
  • Compared to 1 year ago, ALSN has less shares outstanding
  • Compared to 5 years ago, ALSN has less shares outstanding
  • 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

  • An Altman-Z score of 2.89 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.89, ALSN perfoms like the industry average, outperforming 47.33% of the companies in the same 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.
  • Looking at the Debt to FCF ratio, with a value of 4.37, ALSN is in line with its industry, 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.
  • ALSN's Debt to Equity ratio of 1.55 is on the low side compared to the rest of the industry. ALSN is outperformed by 83.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.89
ROIC/WACC1.36
WACC10%
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.
  • ALSN has a Current ratio of 4.85. This is amongst the best in the industry. ALSN outperforms 90.08% of its industry peers.
  • A Quick Ratio of 4.17 indicates that ALSN has no problem at all paying its short term obligations.
  • The Quick ratio of ALSN (4.17) is better 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ALSN Growth Analysis

3.1 Past

  • The earnings per share for ALSN have decreased by -4.81% in the last year.
  • Measured over the past years, ALSN shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.74% on average per year.
  • The Revenue has decreased by -6.67% in the past year.
  • ALSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.66% yearly.
EPS 1Y (TTM)-4.81%
EPS 3Y12.67%
EPS 5Y22.74%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%

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 17.19% yearly.
  • 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 Y14.91%
EPS Next 2Y18.36%
EPS Next 3Y19.03%
EPS Next 5Y17.19%
Revenue Next Year91.8%
Revenue Next 2Y42.11%
Revenue Next 3Y28.99%
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.
  • 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.
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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7

4. ALSN Valuation Analysis

4.1 Price/Earnings Ratio

  • ALSN is valuated correctly with a Price/Earnings ratio of 16.60.
  • Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 85.50% of the companies are valued more expensively.
  • ALSN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.71, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 14.45, the valuation of ALSN can be described as correct.
  • Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 89.31% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (38.09), we can say ALSN is valued rather cheaply.
Industry RankSector Rank
PE 16.6
Fwd PE 14.45
ALSN Price Earnings VS Forward Price EarningsALSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 77.86% of the companies in the same industry are more expensive than ALSN, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaper than 85.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.52
EV/EBITDA 11.2
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 19.03% in the coming years.
PEG (NY)1.11
PEG (5Y)0.73
EPS Next 2Y18.36%
EPS Next 3Y19.03%

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6

5. ALSN Dividend Analysis

5.1 Amount

  • ALSN has a yearly dividend return of 0.92%, which is pretty low.
  • ALSN's Dividend Yield is a higher than the industry average which is at 1.08.
  • With a Dividend Yield of 0.92, ALSN pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.92%

5.2 History

  • On average, the dividend of ALSN grows each year by 9.76%, which is quite nice.
  • ALSN has been paying a dividend for at least 10 years, so it has 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

  • 14.61% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
  • The dividend of ALSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.61%
EPS Next 2Y18.36%
EPS Next 3Y19.03%
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 (4/21/2026, 8:25:42 PM)

After market: 131.34 0 (0%)

131.34

+1.6 (+1.23%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners103.41%
Inst Owner Change0.02%
Ins Owners0.66%
Ins Owner Change6.21%
Market Cap10.92B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target124.99 (-4.83%)
Short Float %3.03%
Short Ratio2.81
Dividend
Industry RankSector Rank
Dividend Yield 0.92%
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)2.04%
Min EPS beat(4)-10.27%
Max EPS beat(4)8.53%
EPS beat(8)6
Avg EPS beat(8)2.92%
EPS beat(12)9
Avg EPS beat(12)7.24%
EPS beat(16)12
Avg EPS beat(16)7.36%
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)4.04%
EPS NQ rev (3m)17.83%
EPS NY rev (1m)-6.4%
EPS NY rev (3m)9.33%
Revenue NQ rev (1m)10.85%
Revenue NQ rev (3m)103.09%
Revenue NY rev (1m)7.2%
Revenue NY rev (3m)91.48%
Valuation
Industry RankSector Rank
PE 16.6
Fwd PE 14.45
P/S 3.63
P/FCF 16.52
P/OCF 13.06
P/B 5.85
P/tB N/A
EV/EBITDA 11.2
EPS(TTM)7.91
EY6.02%
EPS(NY)9.09
Fwd EY6.92%
FCF(TTM)7.95
FCFY6.05%
OCF(TTM)10.06
OCFY7.66%
SpS36.21
BVpS22.46
TBVpS-12.05
PEG (NY)1.11
PEG (5Y)0.73
Graham Number63.2227 (-51.86%)
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 2.89
F-Score6
WACC10%
ROIC/WACC1.36
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)-4.81%
EPS 3Y12.67%
EPS 5Y22.74%
EPS Q2Q%-19.4%
EPS Next Y14.91%
EPS Next 2Y18.36%
EPS Next 3Y19.03%
EPS Next 5Y17.19%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year91.8%
Revenue Next 2Y42.11%
Revenue Next 3Y28.99%
Revenue Next 5Y17.97%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year55.34%
EBIT Next 3Y25.67%
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 7 / 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 14.91% in the next year.