ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - NYSE:ALSN - US01973R1014 - Common Stock
81.95 USD
+0.48 (+0.59%)
82 USD
+0.05 (+0.06%)
We assign a fundamental rating of 7 out of 10 to ALSN. ALSN was compared to 130 industry peers in the Machinery industry. ALSN gets an excellent profitability rating and is at the same time showing great financial health properties. ALSN may be a bit undervalued, certainly considering the very reasonable score on growth ALSN also has an excellent dividend rating. With these ratings, ALSN could be worth investigating further for value and dividend and quality investing!.
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.
1.2 Ratios
ALSN has a better Return On Assets (12.67%) than 90.77% of its industry peers.
ALSN has a Return On Equity of 37.97%. This is amongst the best in the industry. ALSN outperforms 96.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.60%, ALSN belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALSN is significantly above the industry average of 10.24%.
| 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.
ALSN's Operating Margin has been stable in the last couple of years.
The Gross Margin of ALSN (48.29%) is better than 90.00% 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.
Compared to 1 year ago, ALSN has less shares outstanding
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
Compared to 1 year ago, ALSN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ALSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALSN has a Altman-Z score of 2.50. This is comparable to the rest of the industry: ALSN outperforms 43.08% of 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.
With a decent Debt to FCF ratio value of 3.82, ALSN is doing good in the industry, outperforming 61.54% 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 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.68
WACC9.26%
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 better Current ratio (3.82) than 87.69% 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.
Looking at the Quick ratio, with a value of 3.06, ALSN belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
| 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.
Looking at the last year, ALSN shows a decrease in Revenue. The Revenue has decreased by -4.21% in the last year.
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
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.
Based on estimates for the next years, ALSN will show a quite strong growth in Revenue. The Revenue will grow by 14.49% on average per year.
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
A Price/Earnings ratio of 10.04 indicates a reasonable valuation of ALSN.
93.85% of the companies in the same industry are more expensive than ALSN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALSN to the average of the S&P500 Index (25.83), we can say ALSN is valued rather cheaply.
ALSN is valuated reasonably with a Price/Forward Earnings ratio of 8.66.
96.92% of the companies in the same industry are more expensive than ALSN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ALSN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 8.66 |
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 89.23% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALSN indicates a rather cheap valuation: ALSN is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 7.58 |
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)6.79
PEG (5Y)0.9
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.
Compared to an average industry Dividend Yield of 1.83, ALSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 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 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)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 2Y6.74%
EPS Next 3Y6.8%
81.95
+0.48 (+0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.52%
Inst Owner Change-1.72%
Ins Owners0.59%
Ins Owner Change0.25%
Market Cap6.85B
Revenue(TTM)3.07B
Net Income(TTM)699.00M
Analysts73.75
Price Target101.81 (24.23%)
Short Float %3.52%
Short Ratio3.42
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)1.16%
PT rev (3m)-2.46%
EPS NQ rev (1m)-2.33%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)-2.56%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 8.66 | ||
| P/S | 2.23 | ||
| P/FCF | 10.91 | ||
| P/OCF | 8.52 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)8.16
EY9.96%
EPS(NY)9.47
Fwd EY11.55%
FCF(TTM)7.51
FCFY9.16%
OCF(TTM)9.61
OCFY11.73%
SpS36.7
BVpS22.02
TBVpS-12.56
PEG (NY)6.79
PEG (5Y)0.9
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 | 2.5 |
F-Score7
WACC9.26%
ROIC/WACC1.68
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 10.04 and the Price/Book (PB) ratio is 3.72.
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.