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ALSN

Allison Transmission Holdings NYSE:ALSN Stock Report

Last Price

US$38.96

Market Cap

US$3.8b

7D

2.3%

1Y

-9.1%

Updated

26 May, 2022

Data

Company Financials +
ALSN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends5/6

ALSN Stock Overview

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.

Allison Transmission Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Allison Transmission Holdings
Historical stock prices
Current Share PriceUS$38.96
52 Week HighUS$43.40
52 Week LowUS$32.55
Beta0.95
1 Month Change6.97%
3 Month Change-1.94%
1 Year Change-9.12%
3 Year Change-7.98%
5 Year Change-0.23%
Change since IPO66.50%

Recent News & Updates

Shareholder Returns

ALSNUS MachineryUS Market
7D2.3%-0.6%1.0%
1Y-9.1%-16.9%-15.1%

Return vs Industry: ALSN exceeded the US Machinery industry which returned -16.9% over the past year.

Return vs Market: ALSN exceeded the US Market which returned -15.1% over the past year.

Price Volatility

Is ALSN's price volatile compared to industry and market?
ALSN volatility
ALSN Average Weekly Movement4.1%
Machinery Industry Average Movement5.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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.

About the Company

FoundedEmployeesCEOWebsite
19153,400Dave Graziosihttps://www.allisontransmission.com

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 transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and 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 the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name.

Allison Transmission Holdings Fundamentals Summary

How do Allison Transmission Holdings's earnings and revenue compare to its market cap?
ALSN fundamental statistics
Market CapUS$3.78b
Earnings (TTM)US$451.00m
Revenue (TTM)US$2.49b

8.4x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALSN income statement (TTM)
RevenueUS$2.49b
Cost of RevenueUS$1.32b
Gross ProfitUS$1.17b
Other ExpensesUS$723.00m
EarningsUS$451.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.65
Gross Margin47.13%
Net Profit Margin18.11%
Debt/Equity Ratio370.4%

How did ALSN perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

18%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ALSN ($38.96) is trading below our estimate of fair value ($102.54)

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 Price-To-Earnings Ratio (8.4x) compared to the US Machinery industry average (21.2x).

PE vs Market: ALSN is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: ALSN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALSN is overvalued based on its Price-To-Book Ratio (5.6x) compared to the US Machinery industry average (2.2x).


Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-0.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALSN's earnings are forecast to decline over the next 3 years (-0.8% per year).

Earnings vs Market: ALSN's earnings are forecast to decline over the next 3 years (-0.8% per year).

High Growth Earnings: ALSN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALSN's revenue (1.7% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: ALSN's revenue (1.7% 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 (63.4%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALSN has high quality earnings.

Growing Profit Margin: ALSN's current net profit margins (18.1%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: ALSN's earnings have declined by 3.3% per year over the past 5 years.

Accelerating Growth: ALSN's earnings growth over the past year (61.1%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: ALSN earnings growth over the past year (61.1%) exceeded the Machinery industry 24%.


Return on Equity

High ROE: Whilst ALSN's Return on Equity (66.42%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Allison Transmission Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALSN's short term assets ($745.0M) exceed its short term liabilities ($489.0M).

Long Term Liabilities: ALSN's short term assets ($745.0M) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: ALSN's net debt to equity ratio (349%) is considered high.

Reducing Debt: ALSN's debt to equity ratio has increased from 329.4% to 370.4% over the past 5 years.

Debt Coverage: ALSN's debt is well covered by operating cash flow (26.5%).

Interest Coverage: ALSN's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.16%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ALSN's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: ALSN's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (4.01%).


Stability and Growth of Payments

Stable Dividend: ALSN's dividends per share have been stable in the past 10 years.

Growing Dividend: ALSN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.9%), ALSN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.1%), ALSN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.1yrs

Average management tenure


CEO

Dave Graziosi (55 yo)

6.33yrs

Tenure

US$8,528,568

Compensation

Mr. David S. Graziosi, also known as Dave, serves as Chairman at Allison Transmission, Inc since July 2021. He has been the President and Chief Executive Officer of Allison Transmission, Inc. since June 20...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD8.53M) is about average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ALSN's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: ALSN's board of directors are considered experienced (6.2 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 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
  • Implied Market Cap: US$3.782b
  • Shares outstanding: 97.06m
  • Website: https://www.allisontransmission.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/26 00:00
End of Day Share Price2022/05/26 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.