ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALSN - US01973R1014 - Common Stock
85.36 USD
+1.04 (+1.23%)
85.36 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. ALSN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ALSN also has an excellent dividend rating. These ratings would make ALSN suitable 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.
Each year in the past 5 years ALSN has been profitable.
ALSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.67%, ALSN belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
The Return On Equity of ALSN (37.97%) is better than 96.15% of its industry peers.
ALSN has a better Return On Invested Capital (15.60%) than 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 10.34%.
| 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.
ALSN's Operating Margin of 31.70% is amongst the best of 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.
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
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.
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 2.55 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALSN has a Altman-Z score (2.55) which is in line with its industry peers.
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.
ALSN has a better Debt to FCF ratio (3.82) than 63.85% 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.
ALSN's Debt to Equity ratio of 1.30 is on the low side compared to the rest of the industry. ALSN is outperformed by 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.71
WACC9.13%
2.3 Liquidity
A Current Ratio of 3.82 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a Current ratio of 3.82. This is amongst the best in the industry. ALSN outperforms 86.92% of its industry peers.
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 has a Quick ratio of 3.06. This is amongst the best in the industry. ALSN outperforms 88.46% 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.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
ALSN shows a decrease in Revenue. In the last year, the revenue decreased by -4.21%.
The Revenue has been growing slightly by 3.63% on average over the past years.
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.
The Revenue is expected to grow by 14.49% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 10.46, the valuation of ALSN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 94.62% of the companies listed in the same industry.
ALSN is valuated cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
ALSN is valuated reasonably with a Price/Forward Earnings ratio of 9.02.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 95.38% of the companies in the same industry.
ALSN is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than ALSN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 87.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.37 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.08
PEG (5Y)0.94
EPS Next 2Y6.74%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
ALSN has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
ALSN's Dividend Yield is a higher than the industry average which is at 1.97.
Compared to an average S&P500 Dividend Yield of 2.41, ALSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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 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
12.88% 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 earnings are growing more, so the dividend growth is sustainable.
DP12.88%
EPS Next 2Y6.74%
EPS Next 3Y6.8%
85.36
+1.04 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.52%
Inst Owner Change-0.47%
Ins Owners0.59%
Ins Owner Change0.02%
Market Cap7.14B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts73.75
Price Target98.32 (15.18%)
Short Float %3.23%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-2.31%
PT rev (3m)-2.31%
EPS NQ rev (1m)-5.66%
EPS NQ rev (3m)-10.22%
EPS NY rev (1m)-3.69%
EPS NY rev (3m)-8.71%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 9.02 | ||
| P/S | 2.33 | ||
| P/FCF | 11.37 | ||
| P/OCF | 8.88 | ||
| P/B | 3.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.88 |
EPS(TTM)8.16
EY9.56%
EPS(NY)9.47
Fwd EY11.09%
FCF(TTM)7.51
FCFY8.8%
OCF(TTM)9.61
OCFY11.26%
SpS36.7
BVpS22.02
TBVpS-12.56
PEG (NY)7.08
PEG (5Y)0.94
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 | 2.55 |
F-Score7
WACC9.13%
ROIC/WACC1.71
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 10.46 and the Price/Book (PB) ratio is 3.88.
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.