NYSE:ALSN

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Allison Transmission Holdings

Market Cap

US$4.4b

Last Updated

2021/07/24 01:09 UTC

Data Sources

Company Financials +

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

Good value 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 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.


Market Performance


7 Day Return

-0.8%

ALSN

-0.05%

US Machinery

0.4%

US Market


1 Year Return

4.8%

ALSN

45.3%

US Machinery

36.9%

US Market

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.


Shareholder returns

ALSNIndustryMarket
7 Day-0.8%-0.05%0.4%
30 Day1.8%1.0%1.6%
90 Day-8.9%-3.8%2.7%
1 Year6.8%4.8%48.4%45.3%39.1%36.9%
3 Year-0.5%-5.0%59.8%50.4%61.0%51.0%
5 Year50.1%38.4%136.8%112.0%122.5%97.8%

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

Valuation

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

>50%

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).


Future Growth

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

13.6%

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%).


Past Performance

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

12.6%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.91%

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).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Dave Graziosi (55 yo)

3.08yrs

Tenure

US$1,317,057

Compensation

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.


Leadership Team

Experienced Management: ALSN's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: ALSN's board of directors are considered experienced (5.3 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.


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$4.370b
  • Shares outstanding: 109.54m
  • Website: https://www.allisontransmission.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/24 01:09
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.