ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

129.83 USD
+1.32 (+1.03%)
Last:

This ALSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ALSN Profitability Analysis

1.1 Basic Checks

  • ALSN had positive earnings in the past year.
  • In the past year ALSN had a positive cash flow from operations.
  • Each year in the past 5 years ALSN has been profitable.
  • Each year in the past 5 years ALSN had a positive operating cash flow.
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 2025 200M 400M 600M 800M

1.2 Ratios

  • With an excellent Return On Assets value of 10.24%, ALSN belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
  • ALSN has a better Return On Equity (33.37%) than 95.42% of its industry peers.
  • ALSN's Return On Invested Capital of 13.63% is amongst the best of the industry. ALSN outperforms 85.50% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.01%.
Industry RankSector Rank
ROA 10.24%
ROE 33.37%
ROIC 13.63%
ROA(3y)12.45%
ROA(5y)11.72%
ROE(3y)44.08%
ROE(5y)52.54%
ROIC(3y)15.41%
ROIC(5y)14.87%
ALSN Yearly ROA, ROE, ROICALSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • Looking at the Profit Margin, with a value of 20.70%, ALSN belongs to the top of the industry, outperforming 96.95% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ALSN has grown nicely.
  • With an excellent Operating Margin value of 32.03%, ALSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ALSN has grown nicely.
  • With an excellent Gross Margin value of 48.60%, ALSN belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
  • ALSN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 32.03%
PM (TTM) 20.7%
GM 48.6%
OM growth 3Y4.52%
OM growth 5Y4.45%
PM growth 3Y2.58%
PM growth 5Y7.57%
GM growth 3Y1.24%
GM growth 5Y0.13%
ALSN Yearly Profit, Operating, Gross MarginsALSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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6

2. ALSN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALSN is creating some value.
  • Compared to 1 year ago, ALSN has less shares outstanding
  • ALSN has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ALSN has a worse debt to assets ratio.
ALSN Yearly Shares OutstandingALSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 2B 4B 6B

2.2 Solvency

  • ALSN has an Altman-Z score of 2.88. 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 has a Altman-Z score of 2.88. This is comparable to the rest of the industry: ALSN outperforms 47.33% of its industry peers.
  • ALSN has a debt to FCF ratio of 4.37. This is a neutral value as ALSN would need 4.37 years to pay back of all of its debts.
  • The Debt to FCF ratio of ALSN (4.37) is comparable to the rest of the industry.
  • ALSN has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.55, ALSN is not doing good in the industry: 83.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.88
ROIC/WACC1.35
WACC10.13%
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 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • ALSN has a Current Ratio of 4.85. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • ALSN has a better Current ratio (4.85) than 90.08% of its industry peers.
  • ALSN has a Quick Ratio of 4.17. This indicates that ALSN is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Quick ratio value of 4.17, ALSN belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.85
Quick Ratio 4.17
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 2025 500M 1B 1.5B 2B

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5

3. ALSN Growth Analysis

3.1 Past

  • ALSN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.50%.
  • ALSN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.30% yearly.
  • The Revenue has decreased by -6.67% in the past year.
  • The Revenue has been growing slightly by 7.66% on average over the past years.
EPS 1Y (TTM)-6.5%
EPS 3Y12%
EPS 5Y22.3%
EPS Q2Q%-19.4%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%

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 17.61% yearly.
  • The Revenue is expected to grow by 17.97% on average over the next years. This is quite good.
EPS Next Y16.98%
EPS Next 2Y19.42%
EPS Next 3Y19.74%
EPS Next 5Y17.61%
Revenue Next Year80.29%
Revenue Next 2Y42.04%
Revenue Next 3Y28.86%
Revenue Next 5Y17.97%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 2030 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 2030 5 10 15

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8

4. ALSN Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 16.71 indicates a correct valuation of ALSN.
  • Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 83.21% of the companies are valued more expensively.
  • ALSN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 14.28 indicates a correct valuation of ALSN.
  • Based on the Price/Forward Earnings ratio, ALSN is valued cheaper than 90.08% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 37.39. ALSN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.71
Fwd PE 14.28
ALSN Price Earnings VS Forward Price EarningsALSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALSN indicates a somewhat cheap valuation: ALSN is cheaper than 77.86% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaper than 84.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.33
EV/EBITDA 11.1
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

  • ALSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ALSN has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ALSN's earnings are expected to grow with 19.74% in the coming years.
PEG (NY)0.98
PEG (5Y)0.75
EPS Next 2Y19.42%
EPS Next 3Y19.74%

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6

5. ALSN Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.91%, ALSN is not a good candidate for dividend investing.
  • ALSN's Dividend Yield is a higher than the industry average which is at 1.07.
  • With a Dividend Yield of 0.91, ALSN pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • The dividend of ALSN is nicely growing with an annual growth rate of 9.76%!
  • ALSN has paid a dividend for at least 10 years, which is a reliable track record.
  • ALSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.76%
Div Incr Years6
Div Non Decr Years13
ALSN Yearly Dividends per shareALSN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 14.61% 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.
DP14.61%
EPS Next 2Y19.42%
EPS Next 3Y19.74%
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 2025 200M 400M 600M
ALSN Dividend Payout.ALSN Dividend Payout, showing the Payout Ratio.ALSN Dividend Payout.PayoutRetained Earnings

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ALSN Fundamentals: All Metrics, Ratios and Statistics

ALLISON TRANSMISSION HOLDING

NYSE:ALSN (4/13/2026, 3:41:06 PM)

129.83

+1.32 (+1.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners103.41%
Inst Owner Change0.04%
Ins Owners0.66%
Ins Owner Change6.06%
Market Cap10.79B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target124.99 (-3.73%)
Short Float %2.35%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend1.08
Dividend Growth(5Y)9.76%
DP14.61%
Div Incr Years6
Div Non Decr Years13
Ex-Date03-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.86%
Min EPS beat(2)-10.27%
Max EPS beat(2)2.55%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)2.14%
EPS beat(12)9
Avg EPS beat(12)6.72%
EPS beat(16)12
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-4.97%
Min Revenue beat(2)-9.86%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-9.86%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-1.74%
Revenue beat(12)7
Avg Revenue beat(12)-1%
Revenue beat(16)10
Avg Revenue beat(16)-0.54%
PT rev (1m)12%
PT rev (3m)24.27%
EPS NQ rev (1m)3.57%
EPS NQ rev (3m)18.01%
EPS NY rev (1m)-6.4%
EPS NY rev (3m)9.33%
Revenue NQ rev (1m)2.93%
Revenue NQ rev (3m)83.22%
Revenue NY rev (1m)15.54%
Revenue NY rev (3m)80%
Valuation
Industry RankSector Rank
PE 16.71
Fwd PE 14.28
P/S 3.59
P/FCF 16.33
P/OCF 12.91
P/B 5.78
P/tB N/A
EV/EBITDA 11.1
EPS(TTM)7.77
EY5.98%
EPS(NY)9.09
Fwd EY7%
FCF(TTM)7.95
FCFY6.12%
OCF(TTM)10.06
OCFY7.75%
SpS36.21
BVpS22.46
TBVpS-12.05
PEG (NY)0.98
PEG (5Y)0.75
Graham Number62.66
Profitability
Industry RankSector Rank
ROA 10.24%
ROE 33.37%
ROCE 17.15%
ROIC 13.63%
ROICexc 18.57%
ROICexgc 60.91%
OM 32.03%
PM (TTM) 20.7%
GM 48.6%
FCFM 21.96%
ROA(3y)12.45%
ROA(5y)11.72%
ROE(3y)44.08%
ROE(5y)52.54%
ROIC(3y)15.41%
ROIC(5y)14.87%
ROICexc(3y)18.87%
ROICexc(5y)17.21%
ROICexgc(3y)66.28%
ROICexgc(5y)64.07%
ROCE(3y)19.39%
ROCE(5y)18.71%
ROICexgc growth 3Y-0.25%
ROICexgc growth 5Y1.86%
ROICexc growth 3Y5.99%
ROICexc growth 5Y10.58%
OM growth 3Y4.52%
OM growth 5Y4.45%
PM growth 3Y2.58%
PM growth 5Y7.57%
GM growth 3Y1.24%
GM growth 5Y0.13%
F-Score6
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Debt/EBITDA 2.65
Cap/Depr 141.13%
Cap/Sales 5.81%
Interest Coverage 8.03
Cash Conversion 76.84%
Profit Quality 106.1%
Current Ratio 4.85
Quick Ratio 4.17
Altman-Z 2.88
F-Score6
WACC10.13%
ROIC/WACC1.35
Cap/Depr(3y)113.49%
Cap/Depr(5y)112.98%
Cap/Sales(3y)4.79%
Cap/Sales(5y)5.54%
Profit Quality(3y)98.01%
Profit Quality(5y)98.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.5%
EPS 3Y12%
EPS 5Y22.3%
EPS Q2Q%-19.4%
EPS Next Y16.98%
EPS Next 2Y19.42%
EPS Next 3Y19.74%
EPS Next 5Y17.61%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year80.29%
Revenue Next 2Y42.04%
Revenue Next 3Y28.86%
Revenue Next 5Y17.97%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year55.34%
EBIT Next 3Y25.67%
EBIT Next 5Y18.39%
FCF growth 1Y0.46%
FCF growth 3Y10.49%
FCF growth 5Y8.19%
OCF growth 1Y4.37%
OCF growth 3Y8.36%
OCF growth 5Y8.31%

ALLISON TRANSMISSION HOLDING / ALSN Fundamental Analysis 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 8 / 10 to ALLISON TRANSMISSION HOLDING (ALSN). This can be considered as Undervalued.


How profitable is ALLISON TRANSMISSION HOLDING (ALSN) stock?

ALLISON TRANSMISSION HOLDING (ALSN) has a profitability rating of 9 / 10.


What is the financial health of ALLISON TRANSMISSION HOLDING (ALSN) stock?

The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 6 / 10.


What is the earnings growth outlook for ALLISON TRANSMISSION HOLDING?

The Earnings per Share (EPS) of ALLISON TRANSMISSION HOLDING (ALSN) is expected to grow by 16.98% in the next year.