Allison Transmission Holdings Inc.
Find Ratings ReportsALLISON TRANSMISSION HLDGS's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. ALLISON TRANSMISSION HLDGS has strong liquidity. Currently, the Quick Ratio is 1.82 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 41.07% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 775.0 | 718.0 |
EBITDA ($mil) | 265.0 | 231.0 |
EBIT ($mil) | 225.0 | 193.0 |
Net Income ($mil) | 170.0 | 141.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 555.0 | 232.0 |
Total Assets ($mil) | 5025.0 | 4671.0 |
Total Debt ($mil) | 2521.0 | 2524.0 |
Equity ($mil) | 1233.0 | 874.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 53.03 | 52.37 |
EBITDA Margin | 34.19 | 32.17 |
Operating Margin | 29.03 | 26.88 |
Sales Turnover | 0.6 | 0.59 |
Return on Assets | 13.39 | 11.36 |
Return on Equity | 54.58 | 60.76 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.5 | 1.8 |
Debt/Capital | 0.67 | 0.74 |
Interest Expense | 24.0 | 30.0 |
Interest Coverage | 9.38 | 6.43 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 87.65 | 91.79 |
Div / share | 0.23 | 0.21 |
EPS | 1.91 | 1.52 |
Book value / share | 14.07 | 9.52 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 677269.0 | 599216.0 |
BUY. ALLISON TRANSMISSION HLDGS's P/E ratio indicates a significant discount compared to an average of 23.30 for the Transportation Equipment Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 5.33 indicates a premium versus the S&P 500 average of 4.68 and a premium versus the subsector average of 4.90. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. The valuation analysis reveals that, ALLISON TRANSMISSION HLDGS seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ALSN 10.08 | Peers 23.30 | ALSN 8.38 | Peers 20.65 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ALSN is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ALSN is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ALSN 8.80 | Peers 16.58 | ALSN 2.99 | Peers 2.67 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ALSN is trading at a significant discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ALSN trades at a premium to its peers. |
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Price/Book |
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Earnings Growth |
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ALSN 5.33 | Peers 4.90 | ALSN 34.53 | Peers 54.33 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ALSN is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ALSN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ALSN 2.17 | Peers 3.84 | ALSN 9.60 | Peers 19.37 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ALSN is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ALSN significantly trails its peers on the basis of sales growth. |
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