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Allison Transmission Holdings

DB:1A7
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1A7
DB
$6B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. The last earnings update was 85 days ago. More info.


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1A7 Share Price and Events
7 Day Returns
0%
DB:1A7
-2.1%
DE Machinery
-0.3%
DE Market
1 Year Returns
-
DB:1A7
-28.7%
DE Machinery
-6.7%
DE Market
1A7 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Allison Transmission Holdings (1A7) 0% 0% -8.5% - - -
DE Machinery -2.1% -6.8% -14.6% -28.7% -20.9% 2.7%
DE Market -0.3% 2.3% -2% -6.7% 11.3% 12.2%
1 Year Return vs Industry and Market
  • No trading data on 1A7.
  • No trading data on 1A7.
Price Volatility
1A7
Industry
5yr Volatility vs Market

1A7 Value

 Is Allison Transmission Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Allison Transmission Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Allison Transmission Holdings.

DB:1A7 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:1A7
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.087 (1 + (1- 21%) (44.36%))
1.314
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.314 * 5.96%)
8.06%

Discounted Cash Flow Calculation for DB:1A7 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Allison Transmission Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:1A7 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.06%)
2020 632.95 Analyst x8 585.75
2021 631.03 Analyst x4 540.42
2022 577.60 Analyst x1 457.77
2023 564.44 Est @ -2.28% 413.98
2024 555.83 Est @ -1.53% 377.26
2025 550.27 Est @ -1% 345.64
2026 546.79 Est @ -0.63% 317.84
2027 544.75 Est @ -0.37% 293.04
2028 543.70 Est @ -0.19% 270.66
2029 543.33 Est @ -0.07% 250.31
Present value of next 10 years cash flows $3,852.67
DB:1A7 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $543.33 × (1 + 0.23%) ÷ (8.06% – 0.23%)
$6,954.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,954.50 ÷ (1 + 8.06%)10
$3,203.89
DB:1A7 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,852.67 + $3,203.89
$7,056.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,056.56 / 120.30
$58.66
DB:1A7 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:1A7 represents 0.82677x of NYSE:ALSN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.82677x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 58.66 x 0.82677
€48.50
Value per share (EUR) From above. €48.50
Current discount Discount to share price of €38.45
= -1 x (€38.45 - €48.50) / €48.50
20.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Allison Transmission Holdings is available for.
Intrinsic value
21%
Share price is €38.45 vs Future cash flow value of €48.5
Current Discount Checks
For Allison Transmission Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Allison Transmission Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Allison Transmission Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Allison Transmission Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Allison Transmission Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:1A7 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.05
NYSE:ALSN Share Price ** NYSE (2019-05-20) in USD $46.5
Germany Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 14.82x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Allison Transmission Holdings.

DB:1A7 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ALSN Share Price ÷ EPS (both in USD)

= 46.5 ÷ 5.05

9.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Allison Transmission Holdings is good value based on earnings compared to the DE Machinery industry average.
  • Allison Transmission Holdings is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Allison Transmission Holdings's expected growth come at a high price?
Raw Data
DB:1A7 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
-8%per year
Germany Machinery Industry PEG Ratio Median Figure of 29 Publicly-Listed Machinery Companies 1.3x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:1A7 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.21x ÷ -8%

-1.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Allison Transmission Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Allison Transmission Holdings's assets?
Raw Data
DB:1A7 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.96
NYSE:ALSN Share Price * NYSE (2019-05-20) in USD $46.5
Germany Machinery Industry PB Ratio Median Figure of 47 Publicly-Listed Machinery Companies 1.51x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:1A7 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ALSN Share Price ÷ Book Value per Share (both in USD)

= 46.5 ÷ 5.96

7.81x

* Primary Listing of Allison Transmission Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Allison Transmission Holdings is overvalued based on assets compared to the DE Machinery industry average.
X
Value checks
We assess Allison Transmission Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Allison Transmission Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1A7 Future Performance

 How is Allison Transmission Holdings expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Allison Transmission Holdings expected to grow at an attractive rate?
  • Allison Transmission Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Allison Transmission Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Allison Transmission Holdings's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:1A7 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:1A7 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts -8%
DB:1A7 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts -3.5%
Germany Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
Germany Machinery Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:1A7 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:1A7 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,196 1
2022-12-31 2,220 421 1
2021-12-31 2,547 639 512 7
2020-12-31 2,559 714 527 16
2019-12-31 2,639 740 576 16
DB:1A7 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,725 878 655
2018-12-31 2,713 837 639
2018-09-30 2,654 771 707
2018-06-30 2,557 747 651
2018-03-31 2,426 700 572
2017-12-31 2,262 658 504
2017-09-30 2,143 667 350
2017-06-30 1,982 580 284
2017-03-31 1,877 584 250
2016-12-31 1,840 591 215
2016-09-30 1,849 591 167
2016-06-30 1,908 625 169

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Allison Transmission Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Allison Transmission Holdings's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:1A7 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Allison Transmission Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:1A7 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 4.54 4.54 4.54 1.00
2021-12-31 4.78 5.75 3.63 7.00
2020-12-31 4.49 5.30 3.76 16.00
2019-12-31 4.61 5.06 4.25 16.00
DB:1A7 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.05
2018-12-31 4.80
2018-09-30 5.21
2018-06-30 4.64
2018-03-31 3.97
2017-12-31 3.38
2017-09-30 2.25
2017-06-30 1.78
2017-03-31 1.52
2016-12-31 1.28
2016-09-30 0.99
2016-06-30 0.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Allison Transmission Holdings is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Allison Transmission Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Allison Transmission Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1A7 Past Performance

  How has Allison Transmission Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Allison Transmission Holdings's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Allison Transmission Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Allison Transmission Holdings's 1-year earnings growth is less than its 5-year average (14.5% vs 30.6%)
  • Allison Transmission Holdings's earnings growth has exceeded the DE Machinery industry average in the past year (14.5% vs -1.3%).
Earnings and Revenue History
Allison Transmission Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Allison Transmission Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:1A7 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,725.00 655.00 344.00 134.00
2018-12-31 2,713.00 639.00 352.00 131.00
2018-09-30 2,654.00 707.00 366.00 125.00
2018-06-30 2,557.00 651.00 358.00 118.00
2018-03-31 2,426.00 572.00 353.00 110.00
2017-12-31 2,262.00 504.00 342.00 105.00
2017-09-30 2,143.00 350.00 330.00 98.00
2017-06-30 1,982.00 284.00 330.00 93.00
2017-03-31 1,877.00 250.00 320.00 90.00
2016-12-31 1,840.00 215.00 324.00 88.00
2016-09-30 1,849.20 167.00 321.50 87.50
2016-06-30 1,908.20 168.50 329.10 90.10
2016-03-31 1,944.20 161.90 326.70 91.30
2015-12-31 1,986.00 182.00 317.00 93.00
2015-09-30 2,052.00 219.80 324.40 102.60
2015-06-30 2,112.30 242.10 325.30 103.50
2015-03-31 2,137.40 244.90 334.80 101.50
2014-12-31 2,127.40 228.60 343.90 103.80
2014-09-30 2,074.00 221.00 343.20 94.60
2014-06-30 1,987.00 196.70 329.70 91.00
2014-03-31 1,963.00 190.00 330.20 92.60
2013-12-31 1,926.80 165.40 334.90 97.10
2013-09-30 1,922.80 133.70 359.50 100.80
2013-06-30 1,950.00 121.40 382.20 115.80
2013-03-31 1,997.30 483.70 405.70 116.20
2012-12-31 2,141.80 514.20 419.00 115.10
2012-09-30 2,170.90 547.50 417.00 113.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Allison Transmission Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Allison Transmission Holdings used its assets more efficiently than the DE Machinery industry average last year based on Return on Assets.
  • Allison Transmission Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Allison Transmission Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Allison Transmission Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1A7 Health

 How is Allison Transmission Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Allison Transmission Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Allison Transmission Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Allison Transmission Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Allison Transmission Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Allison Transmission Holdings Company Filings, last reported 3 months ago.

DB:1A7 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 746.00 2,538.00 324.00
2018-12-31 659.00 2,532.00 231.00
2018-09-30 684.00 2,522.00 221.00
2018-06-30 602.00 2,522.00 96.00
2018-03-31 706.00 2,544.00 195.00
2017-12-31 689.00 2,546.00 199.00
2017-09-30 555.00 2,567.00 210.00
2017-06-30 696.00 2,383.00 85.00
2017-03-31 737.00 2,427.00 120.00
2016-12-31 1,081.00 2,188.00 205.00
2016-09-30 1,116.70 2,200.70 164.70
2016-06-30 1,162.70 2,394.80 364.40
2016-03-31 1,182.80 2,411.90 299.10
2015-12-31 1,188.60 2,405.60 251.60
2015-09-30 1,214.50 2,440.60 148.40
2015-06-30 1,365.60 2,436.20 216.80
2015-03-31 1,419.00 2,491.50 265.10
2014-12-31 1,397.80 2,505.60 263.00
2014-09-30 1,353.50 2,597.20 208.10
2014-06-30 1,294.00 2,678.10 126.70
2014-03-31 1,393.80 2,689.70 159.90
2013-12-31 1,438.80 2,697.80 184.70
2013-09-30 1,367.80 2,760.20 152.30
2013-06-30 1,429.00 2,843.20 227.40
2013-03-31 1,394.80 2,858.00 120.90
2012-12-31 1,356.90 2,873.10 80.20
2012-09-30 1,324.20 2,977.10 81.90
  • Allison Transmission Holdings's level of debt (340.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (193.1% vs 340.2% today).
  • Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).
X
Financial health checks
We assess Allison Transmission Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Allison Transmission Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1A7 Dividends

 What is Allison Transmission Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.29%
Current annual income from Allison Transmission Holdings dividends. Estimated to be 1.33% next year.
If you bought €2,000 of Allison Transmission Holdings shares you are expected to receive €26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Allison Transmission Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Allison Transmission Holdings's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:1A7 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Germany Machinery Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:1A7 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.64 6.00
2020-12-31 0.62 10.00
2019-12-31 0.61 10.00
DB:1A7 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.600 1.346
2019-02-21 0.600 1.279
2018-10-25 0.600 1.300
2018-07-23 0.600 1.235
2018-05-10 0.600 1.439
2018-02-08 0.600 1.514
2017-11-08 0.600 1.406
2017-08-10 0.600 1.618
2017-05-11 0.600 1.589
2017-02-23 0.600 1.650
2016-11-04 0.600 1.769
2016-08-11 0.600 2.144
2016-05-12 0.600 2.122
2016-02-18 0.600 2.285
2015-11-05 0.600 2.391
2015-10-27 0.600 2.094
2015-10-26 0.600 2.112
2015-05-08 0.600 2.059
2015-02-19 0.600 1.891
2014-10-30 0.600 1.825
2014-08-07 0.480 1.628
2014-05-08 0.480 1.569
2014-02-19 0.480 1.612
2013-11-07 0.480 1.752
2013-08-08 0.480 1.999
2013-04-18 0.480 2.051
2013-02-14 0.240 1.037
2012-11-06 0.240 1.142
2012-08-09 0.240 1.242
2012-05-08 0.240 1.328

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Allison Transmission Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Allison Transmission Holdings only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Allison Transmission Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9x coverage).
X
Income/ dividend checks
We assess Allison Transmission Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Allison Transmission Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Allison Transmission Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1A7 Management

 What is the CEO of Allison Transmission Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Graziosi
COMPENSATION $16,905,055
AGE 53
TENURE AS CEO 1.1 years
CEO Bio

Mr. David S. Graziosi, also known as Dave, has been Chief Executive Officer of Allison Transmission Holdings, Inc. since June 1, 2018. Mr. Graziosi has been President of Allison Transmission Holdings, Inc. since January 5, 2016 and is its Director since 2018. He served as Chief Financial Officer and Assistant secretary of Allison Transmission Holdings, Inc. since November 2007 until June 1, 2018. Mr. Graziosi serves as Principal Accounting Officer at Allison Transmission Holdings, Inc. Mr. Graziosi serves as Chief Financial Officer of Allison Transmission, Inc. He served as Executive Vice President and Assistant Secretary of Allison Transmission Holdings, Inc. from November 2007 to January 5, 2016 and served as its Treasurer from November 2007 to July 17, 2017. Prior to joining Allison, Mr. Graziosi served as Chief Financial Officer and Executive Vice President of Covalence Specialty Materials Corp. He served as Chief Financial Officer and Executive Vice President of Covalence Specialty Adhesives LLC. Mr. Graziosi served as Chief Financial Officer and Executive Vice President of Berry Plastics Corporation from March 22, 2006 to 2007. He served as the Chief Financial Officer and Vice President of The General Chemical Group Inc. Mr. Graziosi served as Vice President of Finance of Epoxy Resins and Precursors at Hexion Specialty Chemicals Inc. from 2005 to 2006. He served as Chief Financial Officer and an Executive Vice President of Resolution Performance Products LLC and its subsidiary, RPP Capital from May 10, 2004 to 2005 and served as their Principal Accounting Officer. Mr. Graziosi served as Co-Chief Financial Officer of Resolution Performance Products LLC since May 10, 2004. He served as Chief Financial Officer and Vice President of Tata Chemicals North America Inc. (formerly, General Chemical Industrial Products Inc.). From 1999 to 2000, he held various positions at Reheis, Inc., a subsidiary of Gentek, Inc. and served as its Business Controller/Chief Financial Officer. Mr. Graziosi also served as Chief Financial Officer and Vice President of GCG of General Chemical Industrial Products Inc. From August 1996 to August 1999, he held various positions at Sun Chemical Group B.V., and served as its Assistant Corporate Controller and Internal Audit Director. He served as a Director of Finance for GenTek Inc. from August 1999 to February 2000. Prior thereto, Mr. Graziosi was employed at Colgate Palmolive from 1994 to 1996 and at Arthur Andersen LLP from 1988 to 1994. He has a broad international financial background including extensive chemical and material industry experience. Mr. Graziosi has been a Director of Fallbrook Technologies Inc. since September 13, 2016. He served as a Director of General Chemical Industrial Products Inc. Mr. Graziosi is also a Certified Public Accountant and a Certified Information Systems Auditor (non-practicing). He studied Bachelor's Degree in Business Economics from State University of New York. Mr. Graziosi holds an MBA from Rutgers University.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Allison Transmission Holdings management team in years:

4
Average Tenure
54.5
Average Age
  • The tenure for the Allison Transmission Holdings management team is about average.
Management Team

Dave Graziosi

TITLE
President
COMPENSATION
$17M
AGE
53
TENURE
1.1 yrs

Fred Bohley

TITLE
VP, CFO & Treasurer
COMPENSATION
$2M
AGE
50
TENURE
1.1 yrs

Mike Dick

TITLE
Senior Vice President of Operations & Purchasing
COMPENSATION
$2M
AGE
57
TENURE
3.5 yrs

John Coll

TITLE
Senior Vice President of Global Marketing
COMPENSATION
$2M
AGE
56
TENURE
2.8 yrs

Randy Kirk

TITLE
Senior Vice President of Product Engineering & Product Teams
COMPENSATION
$2M
AGE
63
TENURE
4.9 yrs

Dean Ranalli

TITLE
Chief Information Officer & VPof Information Systems & Services
TENURE
6 yrs

Raymond Posadas

TITLE
Director of Investor Relations

Eric Scroggins

TITLE
VP, General Counsel & Secretary
AGE
48
TENURE
11.6 yrs

Melissa Sauer

TITLE
Executive Director of Corporate Affairs & Communications

Mary Hoffman

TITLE
Vice President of Human Resources
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure and age of the Allison Transmission Holdings board of directors in years:

3.3
Average Tenure
65
Average Age
  • The tenure for the Allison Transmission Holdings board of directors is about average.
Board of Directors

Larry Dewey

TITLE
Chairman of the Board
COMPENSATION
$3M
AGE
63
TENURE
11.9 yrs

Dave Graziosi

TITLE
President
COMPENSATION
$17M
AGE
53
TENURE
1.2 yrs

Tom Rabaut

TITLE
Lead Director
COMPENSATION
$230K
AGE
71

Richard Reynolds

TITLE
Independent Director
COMPENSATION
$220K
AGE
70
TENURE
8.7 yrs

Alvaro Garcia-Tunon

TITLE
Independent Director
COMPENSATION
$215K
AGE
67
TENURE
3.5 yrs

Dave Everitt

TITLE
Independent Director
COMPENSATION
$200K
AGE
67
TENURE
4.9 yrs

Stan Askren

TITLE
Independent Director
COMPENSATION
$202K
AGE
58
TENURE
3.3 yrs

Richard Lavin

TITLE
Independent Director
COMPENSATION
$205K
AGE
67
TENURE
3.3 yrs

Carolann Haznedar

TITLE
Independent Director
COMPENSATION
$81K
AGE
59
TENURE
0.7 yrs

Judy Altmaier

TITLE
Independent Director
AGE
58
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Allison Transmission Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. May 19 Sell Ashe Capital Management, LP Company 09. May 19 09. May 19 -4,977,043 €41.58 €-206,953,809
04. May 19 Sell Ashe Capital Management, LP Company 01. May 19 01. May 19 -75,000 €41.87 €-3,140,125
30. Apr 19 Buy G. Bohley Individual 26. Apr 19 26. Apr 19 5,000 €41.21 €206,030
22. Aug 18 Sell David Graziosi Individual 20. Aug 18 20. Aug 18 -5,000 €42.43 €-212,149
X
Management checks
We assess Allison Transmission Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Allison Transmission Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1A7 News

Simply Wall St News

1A7 Company Info

Description

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles worldwide. It offers 12 transmission product lines for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under Allison Transmission brand name; and remanufactured transmissions under ReTran brand name. It also sells branded replacement parts, support equipment, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. As of February 28, 2019, the company served customers through an independent network of approximately 1,400 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

Details
Name: Allison Transmission Holdings, Inc.
1A7
Exchange: DB
Founded: 1915
$5,102,765,265
120,303,552
Website: http://www.allisontransmission.com
Address: Allison Transmission Holdings, Inc.
One Allison Way,
Indianapolis,
Indiana, 46222,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ALSN Common Stock New York Stock Exchange US USD 15. Mar 2012
DB 1A7 Common Stock Deutsche Boerse AG DE EUR 15. Mar 2012
Number of employees
Current staff
Staff numbers
2,900
Allison Transmission Holdings employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 21:40
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/23
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.