ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - NYSE:ALSN - US01973R1014 - Common Stock
79.7 USD
+0.43 (+0.54%)
79.7 USD
0 (0%)
Taking everything into account, ALSN scores 7 out of 10 in our fundamental rating. ALSN was compared to 130 industry peers in the Machinery industry. ALSN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALSN. ALSN also has an excellent dividend rating. These ratings could make ALSN a good candidate 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.
In the past 5 years ALSN has always been profitable.
In the past 5 years ALSN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALSN (12.67%) is better than 90.77% of its industry peers.
ALSN has a Return On Equity of 37.97%. This is amongst the best in 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 87.69% 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 10.24%.
| 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 99.23% of its industry peers.
ALSN's Profit Margin has been stable in the last couple of years.
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.
ALSN's Operating Margin has been stable in the last couple of years.
ALSN has a better Gross Margin (48.29%) than 89.23% of its industry peers.
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.
Compared to 1 year ago, ALSN has less shares outstanding
Compared to 5 years ago, ALSN has less shares outstanding
Compared to 1 year ago, ALSN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.47 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.47, ALSN is in line with its industry, outperforming 42.31% of the companies in the same industry.
The Debt to FCF ratio of ALSN is 3.82, which is a good value as it means it would take ALSN, 3.82 years of fcf income to pay off all of its debts.
ALSN's Debt to FCF ratio of 3.82 is fine compared to the rest of the industry. ALSN outperforms 63.85% 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.
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 | 2.47 |
ROIC/WACC1.69
WACC9.25%
2.3 Liquidity
ALSN has a Current Ratio of 3.82. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.82, ALSN belongs to the top of the industry, outperforming 87.69% 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's Quick ratio of 3.06 is amongst the best of the industry. ALSN outperforms 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
The earnings per share for ALSN have decreased by -0.61% in the last year.
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.
Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -4.21% in the last 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.
ALSN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.49% yearly.
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.
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
The Price/Earnings ratio is 9.77, which indicates a very decent valuation of ALSN.
ALSN's Price/Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 94.62% of the companies in the same industry.
ALSN is valuated cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.42, which indicates a very decent valuation of ALSN.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (34.98), we can say ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 8.42 |
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 90.77% 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 89.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.61 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALSN does not grow enough to justify the current Price/Earnings ratio.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.61
PEG (5Y)0.88
EPS Next 2Y6.74%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.31%.
ALSN's Dividend Yield is a higher than the industry average which is at 1.87.
With a Dividend Yield of 1.31, ALSN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of ALSN grows each year by 10.94%, which is quite nice.
ALSN has paid a dividend for at least 10 years, which is 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.
The dividend of ALSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.88%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
79.7
+0.43 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.52%
Inst Owner Change-0.51%
Ins Owners0.59%
Ins Owner Change-0.2%
Market Cap6.66B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts73.75
Price Target101.81 (27.74%)
Short Float %3.23%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-7.83%
EPS NQ rev (3m)-11.87%
EPS NY rev (1m)-4.62%
EPS NY rev (3m)-5.69%
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)-5.65%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-4.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 8.42 | ||
| P/S | 2.17 | ||
| P/FCF | 10.61 | ||
| P/OCF | 8.29 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)8.16
EY10.24%
EPS(NY)9.47
Fwd EY11.88%
FCF(TTM)7.51
FCFY9.42%
OCF(TTM)9.61
OCFY12.06%
SpS36.7
BVpS22.02
TBVpS-12.56
PEG (NY)6.61
PEG (5Y)0.88
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 | 2.47 |
F-Score7
WACC9.25%
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 9.77 and the Price/Book (PB) ratio is 3.62.
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.