Allison Transmission Holdings (ALSN) has a market cap of $4.8 billion. It fell by 0.07% to close at $28.26 per share on August 11, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.04%, -1.6%, and 10.5%, respectively, on the same day. ALSN is trading 2.4% below its 20-day moving average, 0.76% below its 50-day moving average, and 6.6% above its 200-day moving average.
Related ETF and peers
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 10.2% on August 11.
The market caps of Allison Transmission’s competitors are as follows:
Allison Transmission declares dividend
Allison Transmission Holdings has declared a quarterly cash dividend of $0.15 per share on its common stock. The dividend will be paid on September 2, 2016, to shareholders of record at the close of business on August 22, 2016.
Performance of Allison Transmission in 2Q16
Allison Transmission reported 2Q16 net sales of $474.9 million, a fall of 7.1% from the net sales of $511.0 million in 2Q15. The company’s gross profit margin rose by 3.2% and its operating income fell by 7.6% between 2Q15 and 2Q16.
Its net income and EPS (earnings per share) rose to $60.8 million and $0.36, respectively, in 2Q16, compared with $54.4 million and $0.30, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $173.3 million in 2Q16, a fall of 6.6% from fiscal 2Q15.
ALSN’s cash and cash equivalents and inventories rose by 44.8% and 6.4%, respectively, between 4Q15 and 2Q16. Its current ratio and debt-to-equity ratio rose to 2.2x and 2.8x, respectively, in 2Q16, compared with 2.0x and 2.7x, respectively, in 4Q15. It reported adjusted free cash flow of $156.7 million in 2Q16, a rise of 13.3% over fiscal 2Q15.
The company has made the following projections for fiscal 2016:
- net sales to decrease in the range of 9.5% to 10.5%
- adjusted EBITDA margin in the range of 33.3% to 34.0%
- adjusted free cash flow in the range of $415 million to $435 million
- capital expenditures in the range of $65 million to $75 million
- cash income tax in the range of $10 million to $15 million
In the next part of this series, we’ll discuss Dr Pepper Snapple Group.