ALLISON TRANSMISSION HOLDING (ALSN)
US01973R1014 - Common Stock
Overall ALSN gets a fundamental rating of 7 out of 10. We evaluated ALSN 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. ALSN is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ALSN could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
ALSN had positive earnings in the past year.
In the past year ALSN had a positive cash flow from operations.
In the past 5 years ALSN has always been profitable.
In the past 5 years ALSN always reported a positive cash flow from operatings.
1.2 Ratios
ALSN's Return On Assets of 13.52% is amongst the best of the industry. ALSN outperforms 91.54% of its industry peers.
ALSN has a Return On Equity of 44.79%. This is amongst the best in the industry. ALSN outperforms 96.15% of its industry peers.
ALSN's Return On Invested Capital of 16.73% is amongst the best of the industry. ALSN outperforms 89.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALSN is above the industry average of 10.90%.
The 3 year average ROIC (15.20%) for ALSN is below the current ROIC(16.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 44.79% | ||
| ROIC | 16.73% |
ROA(3y)11.56%
ROA(5y)10.99%
ROE(3y)61.68%
ROE(5y)60.39%
ROIC(3y)15.2%
ROIC(5y)14.91%
1.3 Margins
With an excellent Profit Margin value of 22.66%, ALSN belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
With an excellent Operating Margin value of 30.65%, ALSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALSN's Operating Margin has declined in the last couple of years.
The Gross Margin of ALSN (47.66%) is better than 89.23% of its industry peers.
In the last couple of years the Gross Margin of ALSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.65% | ||
| PM (TTM) | 22.66% | ||
| GM | 47.66% |
OM growth 3Y5.21%
OM growth 5Y-2.39%
PM growth 3Y15.56%
PM growth 5Y-1.2%
GM growth 3Y0.1%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALSN is creating value.
The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
Compared to 5 years ago, ALSN has less shares outstanding
ALSN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.85 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALSN has a Altman-Z score of 2.85. This is comparable to the rest of the industry: ALSN outperforms 49.23% of its industry peers.
ALSN has a debt to FCF ratio of 3.39. This is a good value and a sign of high solvency as ALSN would need 3.39 years to pay back of all of its debts.
ALSN's Debt to FCF ratio of 3.39 is fine compared to the rest of the industry. ALSN outperforms 64.62% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that ALSN has dependencies on debt financing.
The Debt to Equity ratio of ALSN (1.48) is worse than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.89
WACC8.87%
2.3 Liquidity
ALSN has a Current Ratio of 2.83. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
ALSN has a Current ratio of 2.83. This is in the better half of the industry: ALSN outperforms 72.31% of its industry peers.
ALSN has a Quick Ratio of 2.25. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
ALSN has a better Quick ratio (2.25) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.45%, which is quite good.
ALSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.25% yearly.
The Revenue has been growing slightly by 7.59% in the past year.
The Revenue has been growing slightly by 2.27% on average over the past years.
EPS 1Y (TTM)16.45%
EPS 3Y37.85%
EPS 5Y9.25%
EPS Q2Q%28.98%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y13.4%
Revenue growth 5Y2.27%
Sales Q2Q%11.96%
3.2 Future
The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.
ALSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.19% yearly.
EPS Next Y12%
EPS Next 2Y12.99%
EPS Next 3Y14.25%
EPS Next 5Y8.27%
Revenue Next Year6.88%
Revenue Next 2Y5.69%
Revenue Next 3Y6.2%
Revenue Next 5Y4.19%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 13.31.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ALSN is valued rather cheaply.
ALSN is valuated reasonably with a Price/Forward Earnings ratio of 11.51.
ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 87.69% of the companies in the same industry.
ALSN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
ALSN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALSN is cheaper than 79.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
ALSN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ALSN may justify a higher PE ratio.
A more expensive valuation may be justified as ALSN's earnings are expected to grow with 14.25% in the coming years.
PEG (NY)1.11
PEG (5Y)1.44
EPS Next 2Y12.99%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, ALSN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.61, ALSN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.86, ALSN pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of ALSN grows each year by 9.02%, 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)9.02%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
11.85% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
ALSN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.85%
EPS Next 2Y12.99%
EPS Next 3Y14.25%
ALLISON TRANSMISSION HOLDING
NYSE:ALSN (12/20/2024, 8:04:00 PM)
After market: 109.3 0 (0%)109.3
+2.08 (+1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change-0.3%
Ins Owners4.07%
Ins Owner Change-0.3%
Market Cap9.47B
Analysts72
Price Target109.91 (0.56%)
Short Float %1.5%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Dividend Growth(5Y)9.02%
DP11.85%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.72%
Min EPS beat(2)3.14%
Max EPS beat(2)10.3%
EPS beat(4)3
Avg EPS beat(4)10.6%
Min EPS beat(4)-1.53%
Max EPS beat(4)30.5%
EPS beat(8)6
Avg EPS beat(8)11.82%
EPS beat(12)9
Avg EPS beat(12)10.89%
EPS beat(16)11
Avg EPS beat(16)8.66%
Revenue beat(2)2
Avg Revenue beat(2)1.16%
Min Revenue beat(2)0.06%
Max Revenue beat(2)2.26%
Revenue beat(4)4
Avg Revenue beat(4)1.15%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.26%
Revenue beat(8)7
Avg Revenue beat(8)1.07%
Revenue beat(12)10
Avg Revenue beat(12)1.19%
Revenue beat(16)11
Avg Revenue beat(16)0.56%
PT rev (1m)13.57%
PT rev (3m)26.76%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)5.67%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 11.51 | ||
| P/S | 2.95 | ||
| P/FCF | 13.37 | ||
| P/OCF | 11.43 | ||
| P/B | 5.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)8.21
EY7.51%
EPS(NY)9.5
Fwd EY8.69%
FCF(TTM)8.17
FCFY7.48%
OCF(TTM)9.56
OCFY8.75%
SpS36.99
BVpS18.71
TBVpS-14.78
PEG (NY)1.11
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 44.79% | ||
| ROCE | 20.44% | ||
| ROIC | 16.73% | ||
| ROICexc | 20.01% | ||
| ROICexgc | 72.02% | ||
| OM | 30.65% | ||
| PM (TTM) | 22.66% | ||
| GM | 47.66% | ||
| FCFM | 22.1% |
ROA(3y)11.56%
ROA(5y)10.99%
ROE(3y)61.68%
ROE(5y)60.39%
ROIC(3y)15.2%
ROIC(5y)14.91%
ROICexc(3y)16.42%
ROICexc(5y)16%
ROICexgc(3y)65.37%
ROICexgc(5y)70.07%
ROCE(3y)18.57%
ROCE(5y)18.21%
ROICexcg growth 3Y7.12%
ROICexcg growth 5Y-11.73%
ROICexc growth 3Y17.54%
ROICexc growth 5Y-2.21%
OM growth 3Y5.21%
OM growth 5Y-2.39%
PM growth 3Y15.56%
PM growth 5Y-1.2%
GM growth 3Y0.1%
GM growth 5Y-1.57%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 3.39 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 92.31% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 7.73 | ||
| Cash Conversion | 74.46% | ||
| Profit Quality | 97.52% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 2.85 |
F-Score7
WACC8.87%
ROIC/WACC1.89
Cap/Depr(3y)101.86%
Cap/Depr(5y)97.37%
Cap/Sales(3y)5.81%
Cap/Sales(5y)5.87%
Profit Quality(3y)98.09%
Profit Quality(5y)111.01%
High Growth Momentum
Growth
EPS 1Y (TTM)16.45%
EPS 3Y37.85%
EPS 5Y9.25%
EPS Q2Q%28.98%
EPS Next Y12%
EPS Next 2Y12.99%
EPS Next 3Y14.25%
EPS Next 5Y8.27%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y13.4%
Revenue growth 5Y2.27%
Sales Q2Q%11.96%
Revenue Next Year6.88%
Revenue Next 2Y5.69%
Revenue Next 3Y6.2%
Revenue Next 5Y4.19%
EBIT growth 1Y10.84%
EBIT growth 3Y19.32%
EBIT growth 5Y-0.17%
EBIT Next Year27.68%
EBIT Next 3Y13.84%
EBIT Next 5Y8.56%
FCF growth 1Y52.92%
FCF growth 3Y13.9%
FCF growth 5Y-2.13%
OCF growth 1Y37.77%
OCF growth 3Y11.8%
OCF growth 5Y-1.3%