NYSE:ALSN

Stock Analysis Report

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.

Snowflake

Fundamentals

Acceptable track record 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


Market Performance


7 Day Return

-0.04%

NYSE:ALSN

-1.0%

US Machinery

-0.02%

US Market


1 Year Return

-12.0%

NYSE:ALSN

-5.4%

US Machinery

1.6%

US Market

ALSN underperformed the Machinery industry which returned -4.3% over the past year.

ALSN underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

ALSNIndustryMarket
7 Day-0.04%-1.0%-0.02%
30 Day7.2%7.1%2.7%
90 Day2.6%-1.0%1.4%
1 Year-10.9%-12.0%-3.4%-5.4%3.8%1.6%
3 Year74.1%66.5%49.2%39.5%45.2%35.8%
5 Year74.2%59.8%55.3%36.1%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Allison Transmission Holdings's share price is below the future cash flow value, but not 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 Based on Earnings

Allison Transmission Holdings is good value based on earnings compared to the US Machinery industry average.

Allison Transmission Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

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

Allison Transmission Holdings is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Allison Transmission Holdings expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

-8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Allison Transmission Holdings's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

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 revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Allison Transmission Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Allison Transmission Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Allison Transmission Holdings is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

31.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (1.7% vs 31.1%)

Allison Transmission Holdings's earnings growth has not exceeded the US Machinery industry average in the past year (1.7% vs 18.7%).


Return on Equity

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.


Return on Assets

Allison Transmission Holdings used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Allison Transmission Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Allison Transmission Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Allison Transmission Holdings's level of debt (382.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (206.8% vs 382.3% today).

Debt is well covered by operating cash flow (35.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

1.32%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Allison Transmission Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Allison Transmission Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

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

Dividends paid are thoroughly covered by earnings (9.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (9.7x coverage).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Dave Graziosi (53yo)

1.3yrs

Tenure

US$16,905,055

Compensation

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. ...


CEO Compensation Analysis

Dave's remuneration is higher than average for companies of similar size in United States of America.

Dave's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

54.5yo

Average Age

The tenure for the Allison Transmission Holdings management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

65yo

Average Age

The tenure for the Allison Transmission Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$232,427,90810 May 19
Ashe Capital Management, LP
EntityCompany
Shares4,977,043
Max PriceUS$46.70
SellUS$3,531,00804 May 19
Ashe Capital Management, LP
EntityCompany
Shares75,000
Max PriceUS$47.08
BuyUS$229,99530 Apr 19
G. Bohley
EntityIndividual
Role
Chief Financial Officer
VP, CFO & Treasurer
Shares5,000
Max PriceUS$46.00

Ownership Breakdown


Management Team

  • Dave Graziosi (53yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$16.91m
  • Randy Kirk (63yo)

    Senior Vice President of Product Engineering & Product Teams

    • Tenure: 5.1yrs
    • Compensation: US$2.00m
  • Eric Scroggins (48yo)

    VP, General Counsel & Secretary

    • Tenure: 11.8yrs
  • Mike Dick (57yo)

    Senior Vice President of Operations & Purchasing

    • Tenure: 3.7yrs
    • Compensation: US$2.11m
  • Fred Bohley (50yo)

    VP, CFO & Treasurer

    • Tenure: 1.3yrs
    • Compensation: US$2.05m
  • Dean Ranalli

    Chief Information Officer & VPof Information Systems & Services

    • Tenure: 6.2yrs
  • Mary Hoffman

    Vice President of Human Resources

    • Tenure: 4.7yrs
  • John Coll (56yo)

    Senior Vice President of Global Marketing

    • Tenure: 2.9yrs
    • Compensation: US$2.08m
  • Melissa Sauer

    Executive Director of Corporate Affairs & Communications

    • Tenure: 0yrs
  • Raymond Posadas

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Alvaro Garcia-Tunon (67yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$214.96k
  • Dave Graziosi (53yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$16.91m
  • Tom Rabaut (71yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$229.96k
  • Richard Lavin (67yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$204.96k
  • Stan Askren (58yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$202.46k
  • Dave Everitt (67yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$199.96k
  • Richard Reynolds (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$219.96k
  • Larry Dewey (63yo)

    Chairman of the Board

    • Tenure: 12.1yrs
    • Compensation: US$4.27m
  • Judy Altmaier (58yo)

    Independent Director

    • Tenure: 0.6yrs
  • Carolann Haznedar (59yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$81.21k

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$5.618b
  • Shares outstanding: 120.51m
  • Website: https://www.allisontransmission.com

Number of Employees


Location

  • Allison Transmission Holdings, Inc.
  • One Allison Way
  • Indianapolis
  • Indiana
  • 46222
  • 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 Analysis2019/09/19 00:21
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.