ALLISON TRANSMISSION HOLDING (ALSN) Stock Fundamental Analysis
USA - NYSE:ALSN - US01973R1014 - Common Stock
80.88 USD
-0.85 (-1.04%)
80.88 USD
0 (0%)
We assign a fundamental rating of 8 out of 10 to ALSN. ALSN was compared to 129 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 Finally 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.
In the past 5 years ALSN has always been profitable.
In the past 5 years ALSN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.08%, ALSN belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
ALSN has a Return On Equity of 43.47%. This is amongst the best in the industry. ALSN outperforms 96.90% of its industry peers.
The Return On Invested Capital of ALSN (16.74%) is better than 91.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALSN is significantly above the industry average of 10.01%.
The last Return On Invested Capital (16.74%) for ALSN is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 43.47% | ||
| ROIC | 16.74% |
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
With an excellent Profit Margin value of 23.81%, ALSN belongs to the best of the industry, outperforming 99.22% of the companies in the same industry.
In the last couple of years the Profit Margin of ALSN has remained more or less at the same level.
The Operating Margin of ALSN (31.72%) is better than 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.
The Gross Margin of ALSN (48.41%) is better than 89.92% of its industry peers.
In the last couple of years the Gross Margin of ALSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.72% | ||
| PM (TTM) | 23.81% | ||
| GM | 48.41% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALSN is creating value.
ALSN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALSN has been reduced compared to 5 years ago.
ALSN has a better debt/assets ratio than last year.
2.2 Solvency
ALSN has an Altman-Z score of 2.54. 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 (2.54) which is in line with its industry peers.
ALSN has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as ALSN would need 3.67 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.67, ALSN is doing good in the industry, outperforming 63.57% of the companies in the same industry.
ALSN has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.37, ALSN is doing worse than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.82
WACC9.21%
2.3 Liquidity
A Current Ratio of 3.36 indicates that ALSN has no problem at all paying its short term obligations.
The Current ratio of ALSN (3.36) is better than 82.95% of its industry peers.
A Quick Ratio of 2.64 indicates that ALSN has no problem at all paying its short term obligations.
ALSN has a better Quick ratio (2.64) than 84.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
ALSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
The Earnings Per Share has been growing by 11.10% on average over the past years. This is quite good.
ALSN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
The Revenue has been growing slightly by 3.63% on average over the past years.
EPS 1Y (TTM)14.29%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%7.51%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-0.25%
3.2 Future
The Earnings Per Share is expected to grow by 14.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.78% on average over the next years. This is quite good.
EPS Next Y6.4%
EPS Next 2Y10.22%
EPS Next 3Y8.26%
EPS Next 5Y14.32%
Revenue Next Year-3.14%
Revenue Next 2Y-0.23%
Revenue Next 3Y2.87%
Revenue Next 5Y14.78%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.19, the valuation of ALSN can be described as reasonable.
Based on the Price/Earnings ratio, ALSN is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
ALSN is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.01 indicates a reasonable valuation of ALSN.
Based on the Price/Forward Earnings ratio, ALSN is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.94. ALSN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.01 |
4.2 Price Multiples
90.70% 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 93.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 7.45 |
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.
PEG (NY)1.44
PEG (5Y)0.83
EPS Next 2Y10.22%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, ALSN has a reasonable but not impressive dividend return.
ALSN's Dividend Yield is a higher than the industry average which is at 1.82.
With a Dividend Yield of 1.33, ALSN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of ALSN grows each year by 10.94%, which is quite nice.
ALSN has been paying a dividend for at least 10 years, so it has 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
ALSN pays out 11.68% 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.
DP11.68%
EPS Next 2Y10.22%
EPS Next 3Y8.26%
80.88
-0.85 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.52%
Inst Owner Change0.33%
Ins Owners0.59%
Ins Owner Change0.25%
Market Cap6.76B
Analysts74.67
Price Target100.64 (24.43%)
Short Float %3.29%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1
Dividend Growth(5Y)10.94%
DP11.68%
Div Incr Years5
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.81%
Min EPS beat(2)2.27%
Max EPS beat(2)7.34%
EPS beat(4)4
Avg EPS beat(4)5.8%
Min EPS beat(4)2.27%
Max EPS beat(4)10.3%
EPS beat(8)6
Avg EPS beat(8)6.76%
EPS beat(12)10
Avg EPS beat(12)9.84%
EPS beat(16)12
Avg EPS beat(16)8.81%
Revenue beat(2)1
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-5.59%
Max Revenue beat(4)2.26%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)9
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)0.19%
PT rev (1m)0%
PT rev (3m)-3.58%
EPS NQ rev (1m)-2.09%
EPS NQ rev (3m)-14.7%
EPS NY rev (1m)-4.28%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.01 | ||
| P/S | 2.11 | ||
| P/FCF | 10.34 | ||
| P/OCF | 8.23 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.45 |
EPS(TTM)8.8
EY10.88%
EPS(NY)10.1
Fwd EY12.48%
FCF(TTM)7.82
FCFY9.67%
OCF(TTM)9.83
OCFY12.15%
SpS38.27
BVpS20.96
TBVpS-13.65
PEG (NY)1.44
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 43.47% | ||
| ROCE | 20.55% | ||
| ROIC | 16.74% | ||
| ROICexc | 19.86% | ||
| ROICexgc | 65.24% | ||
| OM | 31.72% | ||
| PM (TTM) | 23.81% | ||
| GM | 48.41% | ||
| FCFM | 20.44% |
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%
ROICexcg growth 3Y4.74%
ROICexcg 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-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 140% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 8.32 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 85.83% | ||
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 2.54 |
F-Score8
WACC9.21%
ROIC/WACC1.82
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)14.29%
EPS 3Y26.35%
EPS 5Y11.1%
EPS Q2Q%7.51%
EPS Next Y6.4%
EPS Next 2Y10.22%
EPS Next 3Y8.26%
EPS Next 5Y14.32%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y10.32%
Revenue growth 5Y3.63%
Sales Q2Q%-0.25%
Revenue Next Year-3.14%
Revenue Next 2Y-0.23%
Revenue Next 3Y2.87%
Revenue Next 5Y14.78%
EBIT growth 1Y7.52%
EBIT growth 3Y14.15%
EBIT growth 5Y2.1%
EBIT Next Year14.22%
EBIT Next 3Y9.57%
EBIT Next 5Y15.51%
FCF growth 1Y8.64%
FCF growth 3Y12.67%
FCF growth 5Y-0.48%
OCF growth 1Y7.87%
OCF growth 3Y8.05%
OCF growth 5Y-1.11%