ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALSN - US01973R1014 - Common Stock
94.14 USD
-0.94 (-0.99%)
We assign a fundamental rating of 7 out of 10 to ALSN. ALSN was compared to 130 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! Finally ALSN also has an excellent dividend rating. With these ratings, ALSN could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
ALSN had positive earnings in the past year.
ALSN had a positive operating cash flow in the past year.
In the past 5 years ALSN has always been profitable.
ALSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALSN's Return On Assets of 12.67% is amongst the best of the industry. ALSN outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 37.97%, ALSN belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.60%, ALSN belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALSN is significantly above the industry average of 10.46%.
| 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
ALSN's Profit Margin of 22.78% is amongst the best of the industry. ALSN outperforms 98.46% of its industry peers.
In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
ALSN's Operating Margin of 31.70% is amongst the best of the industry. ALSN outperforms 100.00% of its industry peers.
ALSN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 48.29%, ALSN belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
ALSN's Gross Margin has declined in the last couple of years.
| 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
Compared to 5 years ago, ALSN has less shares outstanding
The debt/assets ratio for ALSN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.68 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALSN has a Altman-Z score (2.68) which is comparable to the rest of the industry.
ALSN has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as ALSN would need 3.82 years to pay back of all of its debts.
The Debt to FCF ratio of ALSN (3.82) is better than 63.08% of its industry peers.
ALSN has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
ALSN has a worse Debt to Equity ratio (1.30) than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.67
WACC9.33%
2.3 Liquidity
A Current Ratio of 3.82 indicates that ALSN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.82, ALSN belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
A Quick Ratio of 3.06 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a better Quick ratio (3.06) than 88.46% 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%.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -4.21% in the last 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-6.47%
EPS Next 2Y0.42%
EPS Next 3Y6.47%
EPS Next 5Y14.03%
Revenue Next Year-6.89%
Revenue Next 2Y-3.46%
Revenue Next 3Y0.3%
Revenue Next 5Y14.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 11.54, the valuation of ALSN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 93.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ALSN is valued rather cheaply.
A Price/Forward Earnings ratio of 11.23 indicates a reasonable valuation of ALSN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 91.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 87.69% of the companies listed in the same industry.
ALSN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALSN is cheaper than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y0.42%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.19%.
ALSN's Dividend Yield is a higher than the industry average which is at 1.84.
With a Dividend Yield of 1.19, ALSN pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of ALSN grows each year by 10.94%, 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)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 2Y0.42%
EPS Next 3Y6.47%
NYSE:ALSN (12/9/2025, 11:11:54 AM)
94.14
-0.94 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.76%
Inst Owner Change-0.56%
Ins Owners0.59%
Ins Owner Change0%
Market Cap7.84B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts72.94
Price Target98.32 (4.44%)
Short Float %3.9%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP12.88%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4%
Min EPS beat(2)-10.27%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)0.66%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)5.63%
EPS beat(12)9
Avg EPS beat(12)8.1%
EPS beat(16)12
Avg EPS beat(16)8.33%
Revenue beat(2)1
Avg Revenue beat(2)-4.65%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)0.55%
Revenue beat(8)5
Avg Revenue beat(8)-1.46%
Revenue beat(12)8
Avg Revenue beat(12)-0.65%
Revenue beat(16)11
Avg Revenue beat(16)-0.13%
PT rev (1m)-3.43%
PT rev (3m)-2.31%
EPS NQ rev (1m)1.95%
EPS NQ rev (3m)-10.17%
EPS NY rev (1m)-7.83%
EPS NY rev (3m)-15.86%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 11.23 | ||
| P/S | 2.55 | ||
| P/FCF | 12.48 | ||
| P/OCF | 9.75 | ||
| P/B | 4.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.59 |
EPS(TTM)8.16
EY8.67%
EPS(NY)8.38
Fwd EY8.9%
FCF(TTM)7.55
FCFY8.02%
OCF(TTM)9.66
OCFY10.26%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.04
Graham Number63.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.67% | ||
| ROE | 37.97% | ||
| ROCE | 19.16% | ||
| ROIC | 15.6% | ||
| ROICexc | 18.97% | ||
| ROICexgc | 61.62% | ||
| OM | 31.7% | ||
| PM (TTM) | 22.78% | ||
| GM | 48.29% | ||
| FCFM | 20.46% |
ROA(3y)12.82%
ROA(5y)11.01%
ROE(3y)53.2%
ROE(5y)53.78%
ROIC(3y)16.17%
ROIC(5y)14.56%
ROICexc(3y)18.31%
ROICexc(5y)16.12%
ROICexgc(3y)68.06%
ROICexgc(5y)64.53%
ROCE(3y)19.85%
ROCE(5y)17.88%
ROICexgc growth 3Y4.74%
ROICexgc growth 5Y-6.1%
ROICexc growth 3Y12.45%
ROICexc growth 5Y1.03%
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%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 143.09% | ||
| Cap/Sales | 5.73% | ||
| Interest Coverage | 8.11 | ||
| Cash Conversion | 73.36% | ||
| Profit Quality | 89.84% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.06 | ||
| Altman-Z | 2.68 |
F-Score7
WACC9.33%
ROIC/WACC1.67
Cap/Depr(3y)102.36%
Cap/Depr(5y)100.29%
Cap/Sales(3y)4.86%
Cap/Sales(5y)5.48%
Profit Quality(3y)93.4%
Profit Quality(5y)106.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.61%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%-28.19%
EPS Next Y-6.47%
EPS Next 2Y0.42%
EPS Next 3Y6.47%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.89%
Revenue Next 2Y-3.46%
Revenue Next 3Y0.3%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year8.47%
EBIT Next 3Y5.85%
EBIT Next 5Y15.21%
FCF growth 1Y3.8%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y4.42%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%
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.
Can you provide the valuation status for ALLISON TRANSMISSION HOLDING?
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 8 / 10.
What are the PE and PB ratios of ALLISON TRANSMISSION HOLDING (ALSN) stock?
The Price/Earnings (PE) ratio for ALLISON TRANSMISSION HOLDING (ALSN) is 11.54 and the Price/Book (PB) ratio is 4.26.
What is the expected EPS growth for ALLISON TRANSMISSION HOLDING (ALSN) stock?
The Earnings per Share (EPS) of ALLISON TRANSMISSION HOLDING (ALSN) is expected to decline by -6.47% in the next year.