ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALSN - US01973R1014 - Common Stock
104.25 USD
+2.07 (+2.03%)
104.25 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ALSN. ALSN was compared to 132 industry peers in the Machinery industry. ALSN gets an excellent profitability rating and is at the same time showing great financial health properties. ALSN may be a bit undervalued, certainly considering the very reasonable score on growth 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
In the past year ALSN was profitable.
In the past year ALSN had a positive cash flow from operations.
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 better Return On Assets (12.67%) than 90.15% of its industry peers.
Looking at the Return On Equity, with a value of 37.97%, ALSN belongs to the top of the industry, outperforming 96.21% of the companies in the same industry.
ALSN has a Return On Invested Capital of 15.60%. This is amongst the best in the industry. ALSN outperforms 89.39% of its industry peers.
ALSN had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 10.25%.
| 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 Profit Margin of 22.78%. This is amongst the best in the industry. ALSN outperforms 98.48% 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 has a better Operating Margin (31.70%) than 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 90.15% 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
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
The debt/assets ratio for ALSN has been reduced compared to a year ago.
2.2 Solvency
ALSN has an Altman-Z score of 2.80. This is not the best score and indicates that ALSN is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ALSN (2.80) 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.
ALSN's Debt to FCF ratio of 3.82 is fine compared to the rest of the industry. ALSN outperforms 62.12% 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 Debt to Equity ratio of 1.30. This is amonst the worse of the industry: ALSN underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.65
WACC9.46%
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 87.88% of the companies in the same industry.
ALSN has a Quick Ratio of 3.06. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ALSN (3.06) is better than 89.39% 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%.
ALSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.10% yearly.
The Revenue has decreased by -4.21% in the past year.
Measured over the past years, ALSN shows a small growth in Revenue. The Revenue has been growing by 3.63% on average per year.
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.
The Revenue is expected to grow by 14.49% on average over the next years. This is quite good.
EPS Next Y-6.56%
EPS Next 2Y0.02%
EPS Next 3Y6.41%
EPS Next 5Y14.03%
Revenue Next Year-6.83%
Revenue Next 2Y-3.36%
Revenue Next 3Y0.26%
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
With a Price/Earnings ratio of 12.78, ALSN is valued correctly.
Based on the Price/Earnings ratio, ALSN is valued cheaper than 93.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (27.19), we can say ALSN is valued rather cheaply.
A Price/Forward Earnings ratio of 12.54 indicates a correct valuation of ALSN.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 91.67% of the companies in the same industry.
ALSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 12.54 |
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 87.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALSN is valued cheaper than 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.82 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y0.02%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 0.80, ALSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, ALSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of ALSN is nicely growing with an annual growth rate of 10.94%!
ALSN has paid a dividend for at least 10 years, which is a reliable track record.
ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of ALSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.88%
EPS Next 2Y0.02%
EPS Next 3Y6.41%
104.25
+2.07 (+2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.77%
Inst Owner Change-0.11%
Ins Owners0.59%
Ins Owner Change0%
Market Cap8.68B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts74.12
Price Target100.58 (-3.52%)
Short Float %3.08%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP12.88%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
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)2.31%
PT rev (3m)-0.06%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-5.91%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-12.18%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 12.54 | ||
| P/S | 2.83 | ||
| P/FCF | 13.82 | ||
| P/OCF | 10.79 | ||
| P/B | 4.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.28 |
EPS(TTM)8.16
EY7.83%
EPS(NY)8.31
Fwd EY7.97%
FCF(TTM)7.55
FCFY7.24%
OCF(TTM)9.66
OCFY9.27%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.15
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 | 2.8 |
F-Score7
WACC9.46%
ROIC/WACC1.65
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-6.56%
EPS Next 2Y0.02%
EPS Next 3Y6.41%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.83%
Revenue Next 2Y-3.36%
Revenue Next 3Y0.26%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year8.47%
EBIT Next 3Y5.79%
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.
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.
What is the profitability of ALSN stock?
ALLISON TRANSMISSION HOLDING (ALSN) has a profitability rating of 8 / 10.
How financially healthy is ALLISON TRANSMISSION HOLDING?
The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 7 / 10.
Is the dividend of ALLISON TRANSMISSION HOLDING sustainable?
The dividend rating of ALLISON TRANSMISSION HOLDING (ALSN) is 7 / 10 and the dividend payout ratio is 12.88%.