ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALSN • US01973R1014
115.63 USD
+1.88 (+1.65%)
At close: Feb 6, 2026
115.63 USD
0 (0%)
After Hours: 2/6/2026, 8:17:36 PM
ALSN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 131 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. ALSN is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ALSN could be worth investigating further for value 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.
- 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.
1.2 Ratios
- ALSN has a better Return On Assets (12.67%) than 90.91% 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.
- The Return On Invested Capital of ALSN (15.60%) is better than 90.15% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.26%.
| 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
- Looking at the Profit Margin, with a value of 22.78%, ALSN belongs to the top of the industry, outperforming 98.48% 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 has a Operating Margin of 31.70%. This is amongst the best in the industry. ALSN outperforms 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.
- 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.
- In the last couple of years the Gross Margin of ALSN has declined.
| 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.
- ALSN has less shares outstanding than it did 1 year ago.
- ALSN has less shares outstanding than it did 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 2.96. 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.
- With a Altman-Z score value of 2.96, ALSN perfoms like the industry average, outperforming 51.52% of the companies in the same 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.
- With a decent Debt to FCF ratio value of 3.82, ALSN is doing good in the industry, outperforming 60.61% of the companies in the same industry.
- ALSN has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
- ALSN has a worse Debt to Equity ratio (1.30) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.66
WACC9.39%
2.3 Liquidity
- A Current Ratio of 3.82 indicates that ALSN has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.82, ALSN belongs to the best of the industry, outperforming 87.12% 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 has a Quick ratio of 3.06. This is amongst the best in the industry. ALSN outperforms 88.64% 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
- ALSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.03% yearly.
- The Revenue is expected to grow by 14.49% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
- ALSN is valuated correctly with a Price/Earnings ratio of 14.17.
- Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (27.93), we can say ALSN is valued slightly cheaper.
- The Price/Forward Earnings ratio is 12.97, which indicates a correct valuation of ALSN.
- Based on the Price/Forward Earnings ratio, ALSN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (27.77), we can say ALSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 12.97 |
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 85.61% of the companies listed in the same industry.
- ALSN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALSN is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
- ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y3.57%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
- ALSN has a yearly dividend return of 0.95%, which is pretty low.
- ALSN's Dividend Yield is a higher than the industry average which is at 1.15.
- With a Dividend Yield of 0.95, ALSN pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- On average, the dividend of ALSN grows each year by 10.94%, 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)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.
- 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%
115.63
+1.88 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners104.77%
Inst Owner Change-1.92%
Ins Owners0.59%
Ins Owner Change-0.02%
Market Cap9.62B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts74.12
Price Target111.6 (-3.49%)
Short Float %2.45%
Short Ratio2.19
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 12.97 | ||
| P/S | 3.14 | ||
| P/FCF | 15.32 | ||
| P/OCF | 11.97 | ||
| P/B | 5.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)8.16
EY7.06%
EPS(NY)8.91
Fwd EY7.71%
FCF(TTM)7.55
FCFY6.53%
OCF(TTM)9.66
OCFY8.35%
SpS36.87
BVpS22.12
TBVpS-12.62
PEG (NY)N/A
PEG (5Y)1.28
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 | 2.96 |
F-Score7
WACC9.39%
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%.