ALLISON TRANSMISSION HOLDING (ALSN)
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 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! These ratings would make ALSN suitable for value 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.
ALSN had positive earnings in each of the past 5 years.
Each year in the past 5 years ALSN had a positive operating cash flow.
1.2 Ratios
ALSN's Return On Assets of 13.52% is amongst the best of the industry. ALSN outperforms 92.13% of its industry peers.
ALSN's Return On Equity of 44.79% is amongst the best of the industry. ALSN outperforms 96.06% of its industry peers.
ALSN's Return On Invested Capital of 16.73% is amongst the best of the industry. ALSN outperforms 89.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALSN is above the industry average of 10.98%.
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
ALSN has a better Profit Margin (22.66%) than 99.21% 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 (30.65%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of ALSN has declined.
ALSN has a better Gross Margin (47.66%) than 90.55% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALSN is creating value.
Compared to 1 year ago, ALSN has less shares outstanding
Compared to 5 years ago, ALSN has less shares outstanding
ALSN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.97 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ALSN (2.97) is comparable to the rest of the 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.
ALSN has a Debt to FCF ratio of 3.39. This is in the better half of the industry: ALSN outperforms 63.78% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that ALSN has dependencies on debt financing.
ALSN has a Debt to Equity ratio of 1.48. This is amonst the worse of the industry: ALSN underperforms 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.84
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.83 indicates that ALSN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.83, ALSN is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
A Quick Ratio of 2.25 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a Quick ratio of 2.25. This is in the better half of the industry: ALSN outperforms 79.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.45% over the past year.
Measured over the past years, ALSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.25% on average per year.
The Revenue has been growing slightly by 7.59% in the past year.
Measured over the past years, ALSN shows a small growth in Revenue. The Revenue has been growing by 2.27% on average per year.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.48% yearly.
Based on estimates for the next years, ALSN will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y12.03%
EPS Next 2Y11.55%
EPS Next 3Y12.65%
EPS Next 5Y7.48%
Revenue Next Year6.69%
Revenue Next 2Y5.4%
Revenue Next 3Y5.99%
Revenue Next 5Y3.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.30, the valuation of ALSN can be described as correct.
80.31% of the companies in the same industry are more expensive than ALSN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.53, ALSN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.68, ALSN is valued correctly.
ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 88.98% 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 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
ALSN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALSN is cheaper than 77.17% of the companies 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 88.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 10.5 |
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.
A more expensive valuation may be justified as ALSN's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)1.19
PEG (5Y)1.55
EPS Next 2Y11.55%
EPS Next 3Y12.65%
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 1.54, 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 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
On average, the dividend of ALSN grows each year by 9.02%, 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)9.02%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
11.85% 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.
DP11.85%
EPS Next 2Y11.55%
EPS Next 3Y12.65%
ALLISON TRANSMISSION HOLDING
NYSE:ALSN (11/18/2024, 4:03:07 PM)
After market: 117.41 0 (0%)117.41
+1.55 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.19
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 44.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.65% | ||
| PM (TTM) | 22.66% | ||
| GM | 47.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.45%
EPS 3Y37.85%
EPS 5Y
EPS Q2Q%
EPS Next Y12.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.59%
Revenue growth 3Y13.4%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y