Allison Transmission Holdings Stock Piotroski F Score

ALSN Stock  USD 118.58  0.99  0.83%   
This module uses fundamental data of Allison Transmission to approximate its Piotroski F score. Allison Transmission F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Allison Transmission Holdings. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Allison Transmission financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Allison Transmission Altman Z Score, Allison Transmission Correlation, Allison Transmission Valuation, as well as analyze Allison Transmission Alpha and Beta and Allison Transmission Hype Analysis.
  
At this time, Allison Transmission's Debt Ratio is very stable compared to the past year. At this time, Allison Transmission's Free Cash Flow Per Share is very stable compared to the past year. As of the 28th of November 2024, Inventory Turnover is likely to grow to 7.71, while Dividend Yield is likely to drop 0.01.
At this time, it appears that Allison Transmission's Piotroski F Score is Poor. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
4.0
Piotroski F Score - Poor
Current Return On Assets

Positive

Focus
Change in Return on Assets

Decreased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Improving

Focus
Asset Turnover Growth

Decrease

Focus
Current Ratio Change

Decrease

Focus
Long Term Debt Over Assets Change

Lower Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

No Change

Focus

Allison Transmission Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Allison Transmission is to make sure Allison is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Allison Transmission's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Allison Transmission's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Assets0.06890.1339
Way Down
Slightly volatile
Asset Turnover0.410.604
Way Down
Slightly volatile
Gross Profit Margin0.380.4843
Significantly Down
Pretty Stable
Net Debt1.9 BB
Sufficiently Down
Slightly volatile
Total Current Liabilities447.5 M501 M
Moderately Down
Slightly volatile
Non Current Liabilities Total3.5 B3.3 B
Notably Up
Pretty Stable
Total Assets3.7 BB
Way Down
Slightly volatile
Total Current Assets787.6 M1.2 B
Way Down
Slightly volatile
Total Cash From Operating Activities667.8 M784 M
Fairly Down
Slightly volatile

Allison Transmission F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Allison Transmission's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Allison Transmission in a much-optimized way.

About Allison Transmission Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value Per Share

14.39

At this time, Allison Transmission's Book Value Per Share is very stable compared to the past year.

Allison Transmission ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Allison Transmission's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Allison Transmission's managers, analysts, and investors.
Environmental
Governance
Social

About Allison Transmission Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Allison Transmission Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Allison Transmission using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Allison Transmission Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Allison Transmission

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Allison Transmission position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Allison Transmission will appreciate offsetting losses from the drop in the long position's value.

Moving together with Allison Stock

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Moving against Allison Stock

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The ability to find closely correlated positions to Allison Transmission could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Allison Transmission when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Allison Transmission - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Allison Transmission Holdings to buy it.
The correlation of Allison Transmission is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Allison Transmission moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Allison Transmission moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Allison Transmission can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Allison Transmission offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Allison Transmission's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Allison Transmission Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Allison Transmission Holdings Stock:
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allison Transmission. If investors know Allison will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allison Transmission listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.17
Dividend Share
0.98
Earnings Share
8.19
Revenue Per Share
36.828
Quarterly Revenue Growth
0.204
The market value of Allison Transmission is measured differently than its book value, which is the value of Allison that is recorded on the company's balance sheet. Investors also form their own opinion of Allison Transmission's value that differs from its market value or its book value, called intrinsic value, which is Allison Transmission's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allison Transmission's market value can be influenced by many factors that don't directly affect Allison Transmission's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allison Transmission's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allison Transmission is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allison Transmission's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.