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. More Details
Good value with mediocre balance sheet.
Share Price & News
How has Allison Transmission Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALSN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ALSN's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: ALSN underperformed the US Machinery industry which returned 45.3% over the past year.
Return vs Market: ALSN underperformed the US Market which returned 36.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Allison Transmission Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StDoes Allison Transmission Holdings' (NYSE:ALSN) Share Price Gain of 40% Match Its Business Performance?
1 month ago | Simply Wall StSlowing Rates Of Return At Allison Transmission Holdings (NYSE:ALSN) Leave Little Room For Excitement
2 months ago | Simply Wall StAllison Transmission Holdings' (NYSE:ALSN) Upcoming Dividend Will Be Larger Than Last Year's
Is Allison Transmission Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALSN ($39.89) is trading below our estimate of fair value ($94.03)
Significantly Below Fair Value: ALSN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALSN is good value based on its PE Ratio (16.1x) compared to the US Machinery industry average (33.3x).
PE vs Market: ALSN is good value based on its PE Ratio (16.1x) compared to the US market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: ALSN is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: ALSN is overvalued based on its PB Ratio (5.8x) compared to the US Machinery industry average (2.9x).
How is Allison Transmission Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALSN's forecast earnings growth (13.6% per year) is above the savings rate (2%).
Earnings vs Market: ALSN's earnings (13.6% per year) are forecast to grow slower than the US market (15.1% per year).
High Growth Earnings: ALSN's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALSN's revenue (7.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: ALSN's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALSN's Return on Equity is forecast to be very high in 3 years time (55.8%).
How has Allison Transmission Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALSN has high quality earnings.
Growing Profit Margin: ALSN's current net profit margins (13.8%) are lower than last year (21.7%).
Past Earnings Growth Analysis
Earnings Trend: ALSN's earnings have grown by 12.6% per year over the past 5 years.
Accelerating Growth: ALSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ALSN had negative earnings growth (-51.4%) over the past year, making it difficult to compare to the Machinery industry average (-6.2%).
Return on Equity
High ROE: Whilst ALSN's Return on Equity (36.65%) is high, this metric is skewed due to their high level of debt.
How is Allison Transmission Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: ALSN's short term assets ($820.0M) exceed its short term liabilities ($418.0M).
Long Term Liabilities: ALSN's short term assets ($820.0M) do not cover its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: ALSN's debt to equity ratio (334.8%) is considered high.
Reducing Debt: ALSN's debt to equity ratio has increased from 203.9% to 334.8% over the past 5 years.
Debt Coverage: ALSN's debt is well covered by operating cash flow (21.1%).
Interest Coverage: ALSN's interest payments on its debt are well covered by EBIT (4x coverage).
What is Allison Transmission Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALSN's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: ALSN's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ALSN has been paying a dividend for less than 10 years.
Growing Dividend: ALSN's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.2%), ALSN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALSN's dividends in 3 years are forecast to be thoroughly covered by earnings (13.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dave Graziosi (55 yo)
Mr. David S. Graziosi, also known as Dave, serves as Chairman at Allison Transmission, Inc since July 2021. He has been a President and Chief Executive Officer of Allison Transmission, Inc. since June 2018...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD1.32M) is below average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Experienced Management: ALSN's management team is considered experienced (4.2 years average tenure).
Experienced Board: ALSN's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Allison Transmission Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Allison Transmission Holdings, Inc.
- Ticker: ALSN
- Exchange: NYSE
- Founded: 1915
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: US$4.370b
- Shares outstanding: 109.54m
- Website: https://www.allisontransmission.com
Number of Employees
- Allison Transmission Holdings, Inc.
- One Allison Way
- United States
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, an...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/24 01:09|
|End of Day Share Price||2021/07/23 00:00|
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.