ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - NYSE:ALSN - US01973R1014 - Common Stock
87.68 USD
-0.05 (-0.06%)
87.68 USD
0 (0%)
Overall ALSN gets a fundamental rating of 7 out of 10. We evaluated ALSN against 128 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ALSN could be worth investigating further for value 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.
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
With an excellent Return On Assets value of 14.08%, ALSN belongs to the best of the industry, outperforming 92.97% of the companies in the same industry.
The Return On Equity of ALSN (43.47%) is better than 96.88% of its industry peers.
ALSN has a Return On Invested Capital of 16.74%. This is amongst the best in the industry. ALSN outperforms 91.41% 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 10.02%.
The 3 year average ROIC (16.17%) for ALSN is below the current ROIC(16.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 43.47% | ||
| ROIC | 16.74% |
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
The Profit Margin of ALSN (23.81%) is better than 99.22% of its industry peers.
In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
The Operating Margin of ALSN (31.72%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ALSN has remained more or less at the same level.
The Gross Margin of ALSN (48.41%) is better than 91.41% of its industry peers.
ALSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.72% | ||
| PM (TTM) | 23.81% | ||
| GM | 48.41% |
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.
ALSN has less shares outstanding than it did 5 years ago.
ALSN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.62, ALSN perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
ALSN has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as ALSN would need 3.67 years to pay back of all of its debts.
ALSN has a Debt to FCF ratio of 3.67. This is in the better half of the industry: ALSN outperforms 60.94% of its industry peers.
A Debt/Equity ratio of 1.37 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 1.37, ALSN is doing worse than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.73
WACC9.67%
2.3 Liquidity
A Current Ratio of 3.36 indicates that ALSN has no problem at all paying its short term obligations.
ALSN's Current ratio of 3.36 is amongst the best of the industry. ALSN outperforms 82.03% of its industry peers.
A Quick Ratio of 2.64 indicates that ALSN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.64, ALSN belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.29% over the past year.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.70% 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)14.29%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%7.51%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-0.25%
3.2 Future
ALSN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.32% yearly.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y11.16%
EPS Next 2Y10.09%
EPS Next 3Y8.26%
EPS Next 5Y6.32%
Revenue Next Year-3.14%
Revenue Next 2Y-0.23%
Revenue Next 3Y2.87%
Revenue Next 5Y3.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.96, the valuation of ALSN can be described as very reasonable.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (27.20), we can say ALSN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.71 indicates a reasonable valuation of ALSN.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 97.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 92.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
ALSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)0.9
EPS Next 2Y10.09%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 1.74, ALSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ALSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
11.68% of the earnings are spent on dividend by ALSN. This is a low number and sustainable payout ratio.
The dividend of ALSN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.68%
EPS Next 2Y10.09%
EPS Next 3Y8.26%
87.68
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.88%
Inst Owner Change2.34%
Ins Owners0.58%
Ins Owner Change0.14%
Market Cap7.33B
Analysts74.67
Price Target100.64 (14.78%)
Short Float %3.87%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP11.68%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.81%
Min EPS beat(2)2.27%
Max EPS beat(2)7.34%
EPS beat(4)4
Avg EPS beat(4)5.8%
Min EPS beat(4)2.27%
Max EPS beat(4)10.3%
EPS beat(8)6
Avg EPS beat(8)6.76%
EPS beat(12)10
Avg EPS beat(12)9.84%
EPS beat(16)12
Avg EPS beat(16)8.81%
Revenue beat(2)1
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)9
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)0.19%
PT rev (1m)-2.31%
PT rev (3m)-1.19%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-12.59%
EPS NY rev (1m)3.3%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.71 | ||
| P/S | 2.29 | ||
| P/FCF | 11.21 | ||
| P/OCF | 8.92 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)8.8
EY10.04%
EPS(NY)10.07
Fwd EY11.49%
FCF(TTM)7.82
FCFY8.92%
OCF(TTM)9.83
OCFY11.21%
SpS38.27
BVpS20.96
TBVpS-13.65
PEG (NY)0.89
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 43.47% | ||
| ROCE | 20.55% | ||
| ROIC | 16.74% | ||
| ROICexc | 19.86% | ||
| ROICexgc | 65.24% | ||
| OM | 31.72% | ||
| PM (TTM) | 23.81% | ||
| GM | 48.41% | ||
| FCFM | 20.44% |
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%
ROICexcg growth 3Y4.74%
ROICexcg 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-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 140% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 8.32 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 85.83% | ||
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 2.62 |
F-Score8
WACC9.67%
ROIC/WACC1.73
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)14.29%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%7.51%
EPS Next Y11.16%
EPS Next 2Y10.09%
EPS Next 3Y8.26%
EPS Next 5Y6.32%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-0.25%
Revenue Next Year-3.14%
Revenue Next 2Y-0.23%
Revenue Next 3Y2.87%
Revenue Next 5Y3.34%
EBIT growth 1Y7.52%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year14.22%
EBIT Next 3Y10.03%
EBIT Next 5Y7.04%
FCF growth 1Y8.64%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y7.87%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%