ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
NYSE:ALSN - New York Stock Exchange, Inc. - US01973R1014 - Common Stock
ALSN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. ALSN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
ALSN had a positive operating cash flow in the past year.
In the past 5 years ALSN has always been profitable.
Each year in the past 5 years ALSN had a positive operating cash flow.
1.2 Ratios
ALSN has a better Return On Assets (13.52%) than 91.34% of its industry peers.
The Return On Equity of ALSN (44.79%) is better than 95.28% of its industry peers.
ALSN has a better Return On Invested Capital (16.73%) than 88.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALSN is above the industry average of 11.19%.
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 98.43% of the companies in the same industry.
ALSN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 30.65%, ALSN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ALSN has declined.
The Gross Margin of ALSN (47.66%) is better than 88.98% of its industry peers.
ALSN's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALSN is creating some value.
The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
ALSN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALSN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that ALSN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.02, ALSN is in line with its industry, outperforming 46.46% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.39, ALSN is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
A Debt/Equity ratio of 1.48 is on the high side and indicates that ALSN has dependencies on debt financing.
ALSN's Debt to Equity ratio of 1.48 is on the low side compared to the rest of the industry. ALSN is outperformed by 87.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.78
WACC9.42%
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.
The Current ratio of ALSN (2.83) is better than 72.44% 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.
With an excellent Quick ratio value of 2.25, ALSN belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
| 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.
Looking at the last year, ALSN shows a small growth in Revenue. The Revenue has grown by 7.59% in the last 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
ALSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.27% yearly.
Based on estimates for the next years, ALSN will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y11.95%
EPS Next 2Y12.97%
EPS Next 3Y14.22%
EPS Next 5Y8.27%
Revenue Next Year6.88%
Revenue Next 2Y5.76%
Revenue Next 3Y6.25%
Revenue Next 5Y4.19%
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 stable.
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
With a Price/Earnings ratio of 14.56, ALSN is valued correctly.
81.89% of the companies in the same industry are more expensive than ALSN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.94. ALSN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.59, ALSN is valued correctly.
ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 88.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (24.11), we can say ALSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALSN is valued a bit cheaper than the industry average as 76.38% of the companies are valued more expensively.
87.40% 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 | 14.62 | ||
| EV/EBITDA | 10.76 |
4.3 Compensation for Growth
The 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.
ALSN's earnings are expected to grow with 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.57
EPS Next 2Y12.97%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
ALSN has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 1.65, ALSN has a dividend in line with its industry peers.
With a Dividend Yield of 0.85, ALSN pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of ALSN is nicely growing with an annual growth rate of 9.02%!
ALSN has been paying a dividend for at least 10 years, so it has a reliable track record.
ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.02%
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 2Y12.97%
EPS Next 3Y14.22%
ALLISON TRANSMISSION HOLDING
NYSE:ALSN (1/17/2025, 8:04:00 PM)
Premarket: 119.93 +0.42 (+0.35%)119.51
+1.95 (+1.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-0.11%
Ins Owners0.45%
Ins Owner Change-0.24%
Market Cap10.35B
Analysts72
Price Target112.33 (-6.01%)
Short Float %2.01%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend0.93
Dividend Growth(5Y)9.02%
DP11.85%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
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)2.2%
PT rev (3m)29.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.67%
EPS NY rev (1m)0%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 12.59 | ||
| P/S | 3.23 | ||
| P/FCF | 14.62 | ||
| P/OCF | 12.5 | ||
| P/B | 6.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.76 |
EPS(TTM)8.21
EY6.87%
EPS(NY)9.5
Fwd EY7.95%
FCF(TTM)8.17
FCFY6.84%
OCF(TTM)9.56
OCFY8%
SpS36.99
BVpS18.71
TBVpS-14.78
PEG (NY)1.22
PEG (5Y)1.57
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 | 3.02 |
F-Score7
WACC9.42%
ROIC/WACC1.78
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 Y11.95%
EPS Next 2Y12.97%
EPS Next 3Y14.22%
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 2Y5.76%
Revenue Next 3Y6.25%
Revenue Next 5Y4.19%
EBIT growth 1Y10.84%
EBIT growth 3Y19.32%
EBIT growth 5Y-0.17%
EBIT Next Year28.01%
EBIT Next 3Y14.01%
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%