ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - NYSE:ALSN - US01973R1014 - Common Stock
81.73 USD
-0.57 (-0.69%)
81.73 USD
0 (0%)
Overall ALSN gets a fundamental rating of 7 out of 10. We evaluated ALSN against 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making ALSN a very profitable company, without any liquidiy or solvency issues. ALSN is valued quite cheap, while showing a decent growth score. This is a good combination! 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
In the past year ALSN was profitable.
ALSN had a positive operating cash flow in the past year.
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.
1.2 Ratios
ALSN has a Return On Assets of 12.67%. This is amongst the best in the industry. ALSN outperforms 90.77% of its industry peers.
ALSN's Return On Equity of 37.97% is amongst the best of the industry. ALSN outperforms 96.15% of its industry peers.
ALSN has a Return On Invested Capital of 15.60%. This is amongst the best in the industry. ALSN outperforms 88.46% 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 10.28%.
| 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 has a better Profit Margin (22.78%) than 99.23% of its industry peers.
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 31.70%, ALSN belongs to the best 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 remained more or less at the same level.
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
ALSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ALSN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
Compared to 1 year ago, ALSN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.51 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 2.51. This is comparable to the rest of the industry: ALSN outperforms 42.31% of its industry peers.
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.
ALSN has a better Debt to FCF ratio (3.82) than 63.08% of its industry peers.
A Debt/Equity ratio of 1.30 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 1.30, ALSN is doing worse than 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.69
WACC9.24%
2.3 Liquidity
A Current Ratio of 3.82 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a better Current ratio (3.82) than 87.69% of its industry peers.
A Quick Ratio of 3.06 indicates that ALSN has no problem at all paying its short term obligations.
The Quick ratio of ALSN (3.06) is better 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%.
Measured over the past years, ALSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.10% on average per year.
The Revenue has decreased by -4.21% in the past year.
ALSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.63% yearly.
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
The Earnings Per Share is expected to grow by 14.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.49% on average over the next years. This is quite good.
EPS Next Y1.48%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
EPS Next 5Y14.03%
Revenue Next Year-6.12%
Revenue Next 2Y-2.66%
Revenue Next 3Y0.53%
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
ALSN is valuated reasonably with a Price/Earnings ratio of 10.02.
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.
ALSN is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.63 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 95.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 8.63 |
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 89.23% of the companies listed 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 87.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.88 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.78
PEG (5Y)0.9
EPS Next 2Y6.74%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, ALSN has a reasonable but not impressive dividend return.
ALSN's Dividend Yield is a higher than the industry average which is at 1.86.
With a Dividend Yield of 1.33, ALSN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of ALSN is nicely growing with an annual growth rate of 10.94%!
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
12.88% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.88%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
81.73
-0.57 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.52%
Inst Owner Change-2.33%
Ins Owners0.59%
Ins Owner Change-0.18%
Market Cap6.83B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts73.75
Price Target101.81 (24.57%)
Short Float %3.52%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)1.16%
PT rev (3m)-1.18%
EPS NQ rev (1m)-8.54%
EPS NQ rev (3m)-29.3%
EPS NY rev (1m)-4.62%
EPS NY rev (3m)-5.69%
Revenue NQ rev (1m)-5.65%
Revenue NQ rev (3m)-9.82%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-4.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 8.63 | ||
| P/S | 2.23 | ||
| P/FCF | 10.88 | ||
| P/OCF | 8.5 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.64 |
EPS(TTM)8.16
EY9.98%
EPS(NY)9.47
Fwd EY11.58%
FCF(TTM)7.51
FCFY9.19%
OCF(TTM)9.61
OCFY11.76%
SpS36.7
BVpS22.02
TBVpS-12.56
PEG (NY)6.78
PEG (5Y)0.9
Graham Number63.58
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 | 2.51 |
F-Score7
WACC9.24%
ROIC/WACC1.69
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 Y1.48%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.12%
Revenue Next 2Y-2.66%
Revenue Next 3Y0.53%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year14.22%
EBIT Next 3Y9.57%
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 10.02 and the Price/Book (PB) ratio is 3.71.
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 grow by 1.48% in the next year.