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Allison Transmission Declared Dividend of $0.15 Per Share

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Price movement of Allison Transmission

Allison Transmission Holdings (ALSN) has a market cap of $3.9 billion. ALSN fell by 2.8% to close at $22.92 per share as of February 18, 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is 3.8%, -0.48%, and -11.5%, respectively.

Technically, the stock has broken the support and is trading below all moving day averages. Currently, ALSN is trading 0.43% below its 20-day moving average, 5.8% below its 50-day moving average, and 17.2% below its 200-day moving average.

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The Guggenheim Mid-Cap Core ETF (CZA) invests 0.66% of its holdings in Allison Transmission. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 midcap stocks that seeks to outperform pure market-cap indexes. The YTD price movement of CZA was -7.8% as of February 17, 2016.

The market caps of Allison Transmission’s competitors are as follows:

  • Caterpillar (CAT) — $38.5 billion
  • Cummins (CMI) — $17.3 billion
  • Thor Industries (THO) — $2.8 billion

Allison Transmission declared dividend

Allison Transmission declared a quarterly cash dividend of $0.15 per share on its common stock. The dividend will be paid on March 11, 2016, to shareholders of record at the close of business on February 29, 2016.

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Performance of Allison Transmission in fiscal 4Q15 and fiscal 2015

Allison Transmission (ALSN) reported fiscal 4Q15 net sales of $478.2 million, a fall of 12.2% compared to net sales of $544.4 million in fiscal 4Q14. Its gross profit and operating income fell by 13.1% and 68.4%, respectively, in fiscal 4Q15, compared to fiscal 4Q14.

Its net income and EPS (earnings per share) fell to $13.0 million and $0.08, respectively, in fiscal 4Q15, compared to $50.5 million and $0.28, respectively, in fiscal 4Q14. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $170.1 million in fiscal 4Q15, a fall of 8.2% compared to fiscal 4Q14.

Fiscal 2015 results

In fiscal 2015, ALSN reported net sales of $1,985.8 million, a fall of 6.7% YoY (year-over-year). It reported trade name impairment and environmental remediation of $80.0 million and $14.0 million, respectively, in fiscal 2015. Its net income and EPS fell to $182.3 million and $1.03, respectively, in fiscal 2015, compared to $228.6 million and $1.25, respectively, in fiscal 2014.

Meanwhile, its cash and cash equivalents and inventories fell by 4.3% and 1.5%, respectively, in fiscal 2015. Its current ratio and debt-to-equity ratio rose to 2.0x and 2.7x, respectively, in fiscal 2015, compared to 1.8x and 2.3x, respectively, in fiscal 2014.

The PE (price-to-earnings) and PBV (price-to-book value) ratios of Allison Transmission were 22.3x and 3.1x, respectively, as of February 18, 2016.

Projection

Allison Transmission (ALSN) has made the following projections for fiscal 2016:

  • net sales in the range of -6.5% to -9.5%
  • adjusted EBITDA margin in the range of 32.5%– 34%
  • adjusted free cash flow in the range of $400 million–$450 million
  • capital expenditure in the range of $65 million–$75 million, which includes maintenance spending of ~$60 million
  • cash income taxes in the range of $10 million–$15 million

Continue to the next part for a look at Lear Corporation.

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