ALLISON TRANSMISSION HOLDING (ALSN) Fundamental Analysis & Valuation

NYSE:ALSN • US01973R1014

Current stock price

110.7 USD
-1.49 (-1.33%)
At close:
110.7 USD
0 (0%)
After Hours:

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

  • 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.
  • ALSN had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 10.24%, ALSN belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
  • The Return On Equity of ALSN (33.37%) is better than 95.42% of its industry peers.
  • The Return On Invested Capital of ALSN (13.63%) is better than 84.73% of its industry peers.
  • ALSN had an Average Return On Invested Capital over the past 3 years of 15.41%. This is significantly above the industry average of 10.16%.
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

  • The Profit Margin of ALSN (20.70%) is better than 97.71% of its industry peers.
  • ALSN's Profit Margin has improved in the last couple of years.
  • ALSN has a better Operating Margin (32.03%) than 100.00% of its industry peers.
  • ALSN's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 48.60%, ALSN belongs to the top of the industry, outperforming 88.55% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALSN has remained more or less at the same level.
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

  • ALSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for ALSN has been reduced compared to 1 year ago.
  • 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

  • An Altman-Z score of 2.68 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ALSN has a Altman-Z score (2.68) which is comparable to the rest of the industry.
  • 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.
  • ALSN has a Debt to FCF ratio (4.37) which is in line with its industry peers.
  • A Debt/Equity ratio of 1.55 is on the high side and indicates that ALSN has dependencies on debt financing.
  • ALSN's Debt to Equity ratio of 1.55 is on the low side compared to the rest of the industry. ALSN is outperformed by 83.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF 4.37
Altman-Z 2.68
ROIC/WACC1.46
WACC9.34%
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.
  • Looking at the Current ratio, with a value of 4.85, ALSN belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
  • 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.
  • ALSN's Quick ratio of 4.17 is amongst the best of the industry. ALSN outperforms 90.84% 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

5

3. ALSN Growth Analysis

3.1 Past

  • The earnings per share for ALSN have decreased by -6.50% in the last year.
  • ALSN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.30% yearly.
  • ALSN shows a decrease in Revenue. In the last year, the revenue decreased by -6.67%.
  • Measured over the past years, ALSN shows a small growth in Revenue. The Revenue has been growing by 7.66% on average per year.
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

  • The Earnings Per Share is expected to grow by 17.61% 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 17.97% yearly.
EPS Next Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue Next Year56.05%
Revenue Next 2Y27.07%
Revenue Next 3Y29.97%
Revenue Next 5Y17.97%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 14.25 indicates a correct valuation of ALSN.
  • ALSN's Price/Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 87.02% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, ALSN is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 11.40, the valuation of ALSN can be described as very reasonable.
  • ALSN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALSN is cheaper than 91.60% of the companies in the same industry.
  • ALSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 14.25
Fwd PE 11.4
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 80.15% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALSN is valued cheaper than 85.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.87
EV/EBITDA 9.82
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.
  • The excellent profitability rating of ALSN may justify a higher PE ratio.
  • A more expensive valuation may be justified as ALSN's earnings are expected to grow with 17.96% in the coming years.
PEG (NY)0.57
PEG (5Y)0.64
EPS Next 2Y17.6%
EPS Next 3Y17.96%

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

7

5. ALSN Dividend Analysis

5.1 Amount

  • ALSN has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.18, ALSN pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 1.03, ALSN pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

  • The dividend of ALSN is nicely growing with an annual growth rate of 9.76%!
  • 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)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 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • ALSN pays out 14.61% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of ALSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.61%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
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 (3/20/2026, 8:04:00 PM)

After market: 110.7 0 (0%)

110.7

-1.49 (-1.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-23
Earnings (Next)04-29
Inst Owners103.99%
Inst Owner Change0.95%
Ins Owners0.62%
Ins Owner Change5.92%
Market Cap9.17B
Revenue(TTM)3.01B
Net Income(TTM)623.00M
Analysts74.12
Price Target111.6 (0.81%)
Short Float %2.56%
Short Ratio2.32
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend1.08
Dividend Growth(5Y)9.76%
DP14.61%
Div Incr Years5
Div Non Decr Years12
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)0%
PT rev (3m)13.51%
EPS NQ rev (1m)11.15%
EPS NQ rev (3m)13.03%
EPS NY rev (1m)8.93%
EPS NY rev (3m)15.87%
Revenue NQ rev (1m)78%
Revenue NQ rev (3m)79.21%
Revenue NY rev (1m)54.68%
Revenue NY rev (3m)56.1%
Valuation
Industry RankSector Rank
PE 14.25
Fwd PE 11.4
P/S 3.05
P/FCF 13.87
P/OCF 10.97
P/B 4.91
P/tB N/A
EV/EBITDA 9.82
EPS(TTM)7.77
EY7.02%
EPS(NY)9.71
Fwd EY8.77%
FCF(TTM)7.98
FCFY7.21%
OCF(TTM)10.1
OCFY9.12%
SpS36.35
BVpS22.55
TBVpS-12.1
PEG (NY)0.57
PEG (5Y)0.64
Graham Number62.78
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 2.68
F-Score6
WACC9.34%
ROIC/WACC1.46
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 Y24.97%
EPS Next 2Y17.6%
EPS Next 3Y17.96%
EPS Next 5Y17.61%
Revenue 1Y (TTM)-6.67%
Revenue growth 3Y2.82%
Revenue growth 5Y7.66%
Sales Q2Q%-7.41%
Revenue Next Year56.05%
Revenue Next 2Y27.07%
Revenue Next 3Y29.97%
Revenue Next 5Y17.97%
EBIT growth 1Y-2.82%
EBIT growth 3Y7.46%
EBIT growth 5Y12.46%
EBIT Next Year50.4%
EBIT Next 3Y24.57%
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.


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 7 / 10 and the dividend payout ratio is 14.61%.