ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis

NYSE:ALSN • US01973R1014

125.3 USD
+0.49 (+0.39%)
At close: Feb 27, 2026
125.3 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

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 on profitability, but there are some minor concerns on its financial health. ALSN is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ALSN very considerable for value investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year ALSN was profitable.
  • In the past year ALSN had a positive cash flow from operations.
  • ALSN had positive earnings in each of the past 5 years.
  • 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

  • ALSN's Return On Assets of 10.24% is amongst the best of the industry. ALSN outperforms 82.31% of its industry peers.
  • ALSN's Return On Equity of 33.37% is amongst the best of the industry. ALSN outperforms 95.38% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.63%, ALSN belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ALSN is significantly above the industry average of 10.27%.
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

  • ALSN has a Profit Margin of 20.70%. This is amongst the best in the industry. ALSN outperforms 97.69% of its industry peers.
  • In the last couple of years the Profit Margin of ALSN has grown nicely.
  • ALSN's Operating Margin of 32.03% 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 grown nicely.
  • ALSN's Gross Margin of 48.60% is amongst the best of the industry. ALSN outperforms 89.23% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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
  • The debt/assets ratio for ALSN is higher compared to a year ago.
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 2.84. 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.
  • Looking at the Altman-Z score, with a value of 2.84, ALSN is in line with its industry, outperforming 53.08% of the companies in the same industry.
  • The Debt to FCF ratio of ALSN is 4.37, which is a neutral value as it means it would take ALSN, 4.37 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ALSN (4.37) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.55 is on the high side and indicates that ALSN has dependencies on debt financing.
  • ALSN has a Debt to Equity ratio of 1.55. This is amonst the worse of the industry: ALSN underperforms 83.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.84
ROIC/WACC1.52
WACC8.97%
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

  • A Current Ratio of 4.85 indicates that ALSN has no problem at all paying its short term obligations.
  • ALSN has a better Current ratio (4.85) than 90.00% 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.
  • The Quick ratio of ALSN (4.17) is better than 90.77% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • ALSN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.54%.
  • The Earnings Per Share has been growing by 22.55% on average over the past years. This is a very strong growth
  • ALSN shows a decrease in Revenue. In the last year, the revenue decreased by -6.67%.
  • The Revenue has been growing slightly by 7.66% on average over the past years.
EPS 1Y (TTM)-5.54%
EPS 3Y12.39%
EPS 5Y22.55%
EPS Q2Q%-15.42%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%

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 19.53% on average per year.
  • Based on estimates for the next years, ALSN will show a very strong growth in Revenue. The Revenue will grow by 20.52% on average per year.
EPS Next Y13.56%
EPS Next 2Y16.8%
EPS Next 3Y22.62%
EPS Next 5Y19.53%
Revenue Next Year24.51%
Revenue Next 2Y20.94%
Revenue Next 3Y26.61%
Revenue Next 5Y20.52%

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 stable.
  • 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.
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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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • ALSN is valuated correctly with a Price/Earnings ratio of 15.96.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 87.69% of the companies listed in the same industry.
  • ALSN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 14.06, which indicates a correct valuation of ALSN.
  • ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 89.23% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ALSN to the average of the S&P500 Index (28.05), we can say ALSN is valued slightly cheaper.
Industry RankSector Rank
PE 15.96
Fwd PE 14.06
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

  • Based on the Enterprise Value to EBITDA ratio, ALSN is valued cheaper than 83.85% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaply inside the industry as 86.92% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.78
EV/EBITDA 10.87
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 22.62% in the coming years.
PEG (NY)1.18
PEG (5Y)0.71
EPS Next 2Y16.8%
EPS Next 3Y22.62%

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

6

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.87%, ALSN is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.13, ALSN pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.87, ALSN pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.87%

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 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

  • 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 2Y16.8%
EPS Next 3Y22.62%
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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ALLISON TRANSMISSION HOLDING

NYSE:ALSN (2/27/2026, 8:04:00 PM)

After market: 125.3 0 (0%)

125.3

+0.49 (+0.39%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners104.77%
Inst Owner Change0.97%
Ins Owners0.59%
Ins Owner Change1.67%
Market Cap10.43B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target111.6 (-10.93%)
Short Float %2.43%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
Yearly Dividend1.08
Dividend Growth(5Y)9.76%
DP14.61%
Div Incr Years5
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.33%
Min EPS beat(2)-10.27%
Max EPS beat(2)7.62%
EPS beat(4)3
Avg EPS beat(4)1.74%
Min EPS beat(4)-10.27%
Max EPS beat(4)7.62%
EPS beat(8)6
Avg EPS beat(8)2.77%
EPS beat(12)9
Avg EPS beat(12)7.15%
EPS beat(16)12
Avg EPS beat(16)7.28%
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)10.96%
PT rev (3m)13.51%
EPS NQ rev (1m)6%
EPS NQ rev (3m)7%
EPS NY rev (1m)5.5%
EPS NY rev (3m)-5.85%
Revenue NQ rev (1m)44.38%
Revenue NQ rev (3m)45.37%
Revenue NY rev (1m)24.63%
Revenue NY rev (3m)22.51%
Valuation
Industry RankSector Rank
PE 15.96
Fwd PE 14.06
P/S 3.46
P/FCF 15.78
P/OCF 12.47
P/B 5.59
P/tB N/A
EV/EBITDA 10.87
EPS(TTM)7.85
EY6.26%
EPS(NY)8.91
Fwd EY7.11%
FCF(TTM)7.94
FCFY6.34%
OCF(TTM)10.04
OCFY8.02%
SpS36.16
BVpS22.43
TBVpS-12.04
PEG (NY)1.18
PEG (5Y)0.71
Graham Number62.94
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 2.84
F-Score6
WACC8.97%
ROIC/WACC1.52
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)-5.54%
EPS 3Y12.39%
EPS 5Y22.55%
EPS Q2Q%-15.42%
EPS Next Y13.56%
EPS Next 2Y16.8%
EPS Next 3Y22.62%
EPS Next 5Y19.53%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year24.51%
Revenue Next 2Y20.94%
Revenue Next 3Y26.61%
Revenue Next 5Y20.52%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year35.6%
EBIT Next 3Y28.44%
EBIT Next 5Y22.29%
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 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.


What is the profitability of ALSN stock?

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


How financially healthy is ALLISON TRANSMISSION HOLDING?

The financial health rating of ALLISON TRANSMISSION HOLDING (ALSN) is 6 / 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 14.61%.