NYSE:ALSN

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Allison Transmission Holdings

Executive Summary

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


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

ALSN

0.8%

US Machinery

-1.3%

US Market


1 Year Return

-14.4%

ALSN

13.7%

US Machinery

18.5%

US Market

Return vs Industry: ALSN underperformed the US Machinery industry which returned 13.7% over the past year.

Return vs Market: ALSN underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

ALSNIndustryMarket
7 Day-0.4%0.8%-1.3%
30 Day22.7%7.6%5.3%
90 Day2.3%14.2%7.5%
1 Year-12.9%-14.4%16.6%13.7%21.3%18.5%
3 Year1.7%-2.7%25.0%16.0%42.4%32.9%
5 Year49.8%37.6%108.3%85.1%84.2%63.5%

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

Valuation

Is Allison Transmission Holdings undervalued compared to its fair value and its price relative to the market?

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALSN ($39.45) is trading below our estimate of fair value ($74.1)

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 (11x) compared to the US Machinery industry average (25.7x).

PE vs Market: ALSN is good value based on its PE Ratio (11x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: ALSN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ALSN is overvalued based on its PB Ratio (6.4x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Allison Transmission Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALSN's forecast earnings growth (17.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ALSN's earnings (17.8% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: ALSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALSN's revenue (7.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ALSN's revenue (7.9% 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 (48.3%).


Next Steps

Past Performance

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

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALSN has high quality earnings.

Growing Profit Margin: ALSN's current net profit margins (18.2%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: ALSN's earnings have grown significantly by 26% 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 (-36.8%) over the past year, making it difficult to compare to the Machinery industry average (-13.1%).


Return on Equity

High ROE: Whilst ALSN's Return on Equity (60.14%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Allison Transmission Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ALSN's short term assets ($887.0M) exceed its short term liabilities ($356.0M).

Long Term Liabilities: ALSN's short term assets ($887.0M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: ALSN's debt to equity ratio (411.2%) is considered high.

Reducing Debt: ALSN's debt to equity ratio has increased from 178.8% to 411.2% over the past 5 years.

Debt Coverage: ALSN's debt is well covered by operating cash flow (22.9%).

Interest Coverage: ALSN's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALSN's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: ALSN's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.9%), 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 (12.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Dave Graziosi (54 yo)

2.33yrs

Tenure

US$3,093,412

Compensation

Mr. David S. Graziosi, also known as Dave, has been a President and Chief Executive Officer of Allison Transmission, Inc. since June 2018 and serves as its Director. Mr. Graziosi served as Chief Financial ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD3.09M) is below average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Graziosi
President2.33yrsUS$3.09m0.18%
$ 8.2m
G. Bohley
VP, CFO & Treasurer2.33yrsUS$2.20m0.045%
$ 2.0m
Michael Dick
Senior Vice President of Operations & Purchasing4.75yrsUS$2.27m0.047%
$ 2.1m
John Coll
Senior Vice President of Global Marketing4yrsUS$2.01m0.016%
$ 716.8k
Randall Kirk
Senior Vice President of Product Engineering & Program Management6.17yrsUS$2.11m0.24%
$ 10.6m
Dean Ranalli
Chief Information Officer & VP of Information Systems and Services7.25yrsno datano data
Raymond Posadas
Director of Investor Relationsno datano datano data
Eric Scroggins
VP, General Counsel & Secretary12.83yrsno data0.025%
$ 1.1m
Melissa Sauer
Executive Director of Corporate Affairs & Communicationsno datano datano data
Lorraine Parker-Clegg
Chief People Officerno datano datano data
Otto Szalavari
Managing Director of Global Marketing2.83yrsno datano data
Paul Richardson
Executive Director of Quality & Reliability3.58yrsno datano data

4.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ALSN's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Graziosi
President2.33yrsUS$3.09m0.18%
$ 8.2m
Alvaro Garcia-Tunon
Independent Director4.75yrsUS$233.72k0%
$ 0
Thomas Rabaut
Independent Lead Directorno dataUS$269.97k0.044%
$ 1.9m
Richard Lavin
Independent Director4.58yrsUS$222.47k0.0099%
$ 443.5k
Stanley Askren
Independent Director4.58yrsUS$217.47k0.015%
$ 675.2k
David Everitt
Independent Director6.17yrsUS$214.97k0.0014%
$ 62.5k
Richard Reynolds
Independent Director9.92yrsUS$234.97k0%
$ 0
Lawrence Dewey
Chairman of the Board13.17yrsUS$267.47k0.22%
$ 9.9m
Judy Altmaier
Independent Director1.67yrsUS$217.47k0%
$ 0
Carolann Haznedar
Independent Director1.92yrsUS$219.97k0%
$ 0

4.6yrs

Average Tenure

66yo

Average Age

Experienced Board: ALSN's board of directors are considered experienced (4.6 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Allison Transmission Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allison Transmission Holdings, Inc.
  • Ticker: ALSN
  • Exchange: NYSE
  • Founded: 1915
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$4.466b
  • Shares outstanding: 113.20m
  • Website: https://www.allisontransmission.com

Number of Employees


Location

  • Allison Transmission Holdings, Inc.
  • One Allison Way
  • Indianapolis
  • Indiana
  • 46222-3271
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALSNNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2012
1A7DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:34
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.