ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis

NYSE:ALSN • US01973R1014

118.48 USD
+2.73 (+2.36%)
Last: Feb 13, 2026, 01:24 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall ALSN gets a fundamental rating of 7 out of 10. We evaluated ALSN against 131 industry peers in the Machinery industry. ALSN gets an excellent profitability rating and is at the same time showing great financial health properties. 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!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • ALSN had positive earnings in the past year.
  • In the past year ALSN had a positive cash flow from operations.
  • ALSN had positive earnings in each of the past 5 years.
  • In the past 5 years ALSN always reported a positive cash flow from operatings.
ALSN Yearly Net Income VS EBIT VS OCF VS FCFALSN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

1.2 Ratios

  • ALSN has a Return On Assets of 12.67%. This is amongst the best in the industry. ALSN outperforms 90.08% 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 96.18% 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 90.84% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.21%.
Industry RankSector 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%
ALSN Yearly ROA, ROE, ROICALSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

  • With an excellent Profit Margin value of 22.78%, ALSN belongs to the best of the industry, outperforming 98.47% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
  • ALSN's Operating Margin of 31.70% is amongst the best of the industry. ALSN outperforms 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 90.08% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALSN has declined.
Industry RankSector 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%
ALSN Yearly Profit, Operating, Gross MarginsALSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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7

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.
  • 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.
ALSN Yearly Shares OutstandingALSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
ALSN Yearly Total Debt VS Total AssetsALSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

  • ALSN has an Altman-Z score of 2.96. 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.
  • ALSN's Altman-Z score of 2.96 is in line compared to the rest of the industry. ALSN outperforms 53.44% of its industry peers.
  • 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 61.83% 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 81.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.3
Debt/FCF 3.82
Altman-Z 2.96
ROIC/WACC1.66
WACC9.38%
ALSN Yearly LT Debt VS Equity VS FCFALSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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 86.26% 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.
  • ALSN's Quick ratio of 3.06 is amongst the best of the industry. ALSN outperforms 88.55% of its industry peers.
Industry RankSector Rank
Current Ratio 3.82
Quick Ratio 3.06
ALSN Yearly Current Assets VS Current LiabilitesALSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • ALSN shows a decrease in Revenue. In the last year, the revenue decreased by -4.21%.
  • 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.
  • 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 Y-6.04%
EPS Next 2Y3.57%
EPS Next 3Y8.82%
EPS Next 5Y14.03%
Revenue Next Year-6.76%
Revenue Next 2Y-3.02%
Revenue Next 3Y1.83%
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.
ALSN Yearly Revenue VS EstimatesALSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
ALSN Yearly EPS VS EstimatesALSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.52, ALSN is valued correctly.
  • 89.31% of the companies in the same industry are more expensive than ALSN, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (27.67), we can say ALSN is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 13.29 indicates a correct 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 90.84% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (27.69), we can say ALSN is valued rather cheaply.
Industry RankSector Rank
PE 14.52
Fwd PE 13.29
ALSN Price Earnings VS Forward Price EarningsALSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • ALSN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALSN is cheaper than 85.50% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 87.79% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.7
EV/EBITDA 10.15
ALSN Per share dataALSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

  • The excellent profitability rating of ALSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y3.57%
EPS Next 3Y8.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • ALSN has a yearly dividend return of 0.95%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.14, ALSN pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.95, ALSN pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.95%

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 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
ALSN Yearly Dividends per shareALSN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • ALSN pays out 12.88% of its income as dividend. This is a sustainable payout ratio.
  • ALSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.88%
EPS Next 2Y3.57%
EPS Next 3Y8.82%
ALSN Yearly Income VS Free CF VS DividendALSN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
ALSN Dividend Payout.ALSN Dividend Payout, showing the Payout Ratio.ALSN Dividend Payout.PayoutRetained Earnings

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ALLISON TRANSMISSION HOLDING

NYSE:ALSN (2/13/2026, 1:24:57 PM)

118.48

+2.73 (+2.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29
Earnings (Next)02-18
Inst Owners104.77%
Inst Owner Change-1.92%
Ins Owners0.59%
Ins Owner Change-0.02%
Market Cap9.86B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts74.12
Price Target111.6 (-5.81%)
Short Float %2.45%
Short Ratio2.19
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
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)10.96%
PT rev (3m)9.62%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)3.2%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 14.52
Fwd PE 13.29
P/S 3.21
P/FCF 15.7
P/OCF 12.27
P/B 5.36
P/tB N/A
EV/EBITDA 10.15
EPS(TTM)8.16
EY6.89%
EPS(NY)8.91
Fwd EY7.52%
FCF(TTM)7.55
FCFY6.37%
OCF(TTM)9.66
OCFY8.15%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.31
Graham Number63.73
Profitability
Industry RankSector 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 RankSector 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 2.96
F-Score7
WACC9.38%
ROIC/WACC1.66
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-6.04%
EPS Next 2Y3.57%
EPS Next 3Y8.82%
EPS Next 5Y14.03%
Revenue 1Y (TTM)-4.21%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-15.9%
Revenue Next Year-6.76%
Revenue Next 2Y-3.02%
Revenue Next 3Y1.83%
Revenue Next 5Y14.49%
EBIT growth 1Y-0.92%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year8.28%
EBIT Next 3Y11.54%
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 6 / 10 and the dividend payout ratio is 12.88%.