(ALSN) Allison Transmission - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US01973R1014

Automatic Transmissions, Electric Propulsion, ReTran, Parts, Defense Kits

Stock: Construction Machinery & Heavy Transportation Equipment
Age 13.8y

MCap 8,860m
Avg Vol 750K (76.2M USD)

Beta 1.039
Volatility 27.89%

EPS (Earnings per Share)

EPS CAGR: -42.44%
EPS Trend: -6.4%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: 1.97%
Rev. Trend: 68.3%

Last SUE: -2.87
Qual. Beats: 0

Dividends

Dividend Yield	1.15%
Yield on Cost 5y	2.81%
Yield CAGR 5y	9.18%
Payout Consistency	98.7%
Payout Ratio	13.0%

Risk via 5d forecast
Volatility	27.9%
Value at Risk 5%th	42.1%
Relative Tail Risk	-8.34%

Reward TTM
Sharpe Ratio	-0.14
Alpha	-22.74
CAGR/Max DD	1.18

Character TTM
Hurst Exponent	0.586
Beta	1.039
Beta Downside	0.960

Drawdowns 3y
Max DD	33.59%
Mean DD	9.92%
Median DD	6.63%

Description: ALSN Allison Transmission January 07, 2026

Allison Transmission Holdings, Inc. (NYSE: ALSN) designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles, as well as electrified propulsion systems for U.S. defense platforms, serving a global customer base across distribution, construction, transit, mining, and off-highway applications.

In FY 2023 the company generated approximately $2.5 billion in revenue, with aftermarket parts and services contributing roughly 30% of total sales and delivering an operating margin near 9%; its “ReTran” remanufacturing line has grown at a 12% compound annual rate over the past three years, reflecting strong demand for cost-effective lifecycle extensions.

Key economic drivers include U.S. freight volume growth, which underpins medium- and heavy-truck orders, and rising defense spending that supports the “defense kits” segment; a material sector catalyst is the accelerating shift toward electric powertrains, where Allison’s electrified propulsion solutions are projected to expand revenue at a double-digit pace, contingent on broader EV adoption in commercial fleets.

For a deeper dive into ALSN’s valuation metrics and scenario analysis, see the ValueRay platform.

Piotroski VR‑10 (Strict, 0-10) 6.5

Net Income (699.0m TTM) > 0 and > 6% of Revenue (6% = 184.1m TTM)

FCFTA 0.12 (>2.0%) and ΔFCFTA -0.77pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 40.18% (prev 32.12%; Δ 8.06pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.15 (>3.0%) and CFO 804.0m > Net Income 699.0m (YES >=105%, WARN >=100%)

Net Debt (1.50b) to EBITDA (1.07b) ratio: 1.39 <= 3.0 (WARN <= 3.5)

Current Ratio 3.82 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (84.0m) change vs 12m ago -4.49% (target <= -2.0% for YES)

Gross Margin 48.29% (prev 47.60%; Δ 0.69pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 56.39% (prev 59.69%; Δ -3.30pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 10.85 (EBITDA TTM 1.07b / Interest Expense TTM 88.0m) >= 6 (WARN >= 3)

Altman Z'' 2.57

(A) 0.22 = (Total Current Assets 1.67b - Total Current Liabilities 438.0m) / Total Assets 5.52b

(B) -0.01 = Retained Earnings (Balance) -70.0m / Total Assets 5.52b

(D) -0.03 = Book Value of Equity -112.0m / Total Liabilities 3.68b

Total Rating: 2.57 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 82.57

1. Piotroski 6.50pt

2. FCF Yield 6.61%

3. FCF Margin 22.32%

4. Debt/Equity 1.30

5. Debt/Ebitda 1.39

6. ROIC - WACC (= 9.62)%

7. RoE 40.46%

8. Rev. Trend 68.31%

9. EPS Trend -6.39%

What is the price of ALSN shares?

As of January 17, 2026, the stock is trading at USD 110.20 with a total of 820,556 shares traded.
Over the past week, the price has changed by +5.71%, over one month by +11.66%, over three months by +35.28% and over the past year by -5.17%.

Is ALSN a buy, sell or hold?

Allison Transmission has received a consensus analysts rating of 3.30. Therefor, it is recommend to hold ALSN.

Strong Buy: 2
Buy: 1
Hold: 5
Sell: 2
Strong Sell: 0

What are the forecasts/targets for the ALSN price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	105.3	-4.4%
Analysts Target Price	105.3	-4.4%
ValueRay Target Price	139.4	26.5%

ALSN Fundamental Data Overview January 15, 2026

P/E Trailing = 13.0012
P/E Forward = 10.8814
P/S = 2.8869
P/B = 4.7903
P/EG = 0.8009
Revenue TTM = 3.07b USD
EBIT TTM = 955.0m USD
EBITDA TTM = 1.07b USD
Long Term Debt = 2.39b USD (from longTermDebt, last quarter)
Short Term Debt = 5.00m USD (from shortTermDebt, last quarter)
Debt = 2.40b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.50b USD (from netDebt column, last quarter)
Enterprise Value = 10.36b USD (8.86b + Debt 2.40b - CCE 902.0m)
Interest Coverage Ratio = 10.85 (Ebit TTM 955.0m / Interest Expense TTM 88.0m)
EV/FCF = 15.12x (Enterprise Value 10.36b / FCF TTM 685.0m)
FCF Yield = 6.61% (FCF TTM 685.0m / Enterprise Value 10.36b)
FCF Margin = 22.32% (FCF TTM 685.0m / Revenue TTM 3.07b)
Net Margin = 22.78% (Net Income TTM 699.0m / Revenue TTM 3.07b)
Gross Margin = 48.29% ((Revenue TTM 3.07b - Cost of Revenue TTM 1.59b) / Revenue TTM)
Gross Margin QoQ = 47.47% (prev 49.39%)
Tobins Q-Ratio = 1.88 (Enterprise Value 10.36b / Total Assets 5.52b)
Interest Expense / Debt = 1.00% (Interest Expense 24.0m / Debt 2.40b)
Taxrate = 24.73% (45.0m / 182.0m)
NOPAT = 718.9m (EBIT 955.0m * (1 - 24.73%))
Current Ratio = 3.82 (Total Current Assets 1.67b / Total Current Liabilities 438.0m)
Debt / Equity = 1.30 (Debt 2.40b / totalStockholderEquity, last quarter 1.84b)
Debt / EBITDA = 1.39 (Net Debt 1.50b / EBITDA 1.07b)
Debt / FCF = 2.18 (Net Debt 1.50b / FCF TTM 685.0m)
Total Stockholder Equity = 1.73b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.84% (Net Income 699.0m / Total Assets 5.52b)
RoE = 40.46% (Net Income TTM 699.0m / Total Stockholder Equity 1.73b)
RoCE = 23.18% (EBIT 955.0m / Capital Employed (Equity 1.73b + L.T.Debt 2.39b))
RoIC = 17.42% (NOPAT 718.9m / Invested Capital 4.13b)
WACC = 7.80% (E(8.86b)/V(11.26b) * Re(9.71%) + D(2.40b)/V(11.26b) * Rd(1.00%) * (1-Tc(0.25)))
Discount Rate = 9.71% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.82%
[DCF Debug] Terminal Value 79.97% ; FCFF base≈694.2m ; Y1≈753.9m ; Y5≈941.6m
Fair Price DCF = 186.0 (EV 16.98b - Net Debt 1.50b = Equity 15.48b / Shares 83.2m; r=7.80% [WACC]; 5y FCF grow 9.79% → 2.90% )
EPS Correlation: -6.39 | EPS CAGR: -42.44% | SUE: -4.0 | # QB: 0
Revenue Correlation: 68.31 | Revenue CAGR: 1.97% | SUE: -2.87 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.65 | Chg30d=+0.000 | Revisions Net=-1 | Analysts=2
EPS next Year (2026-12-31): EPS=8.64 | Chg30d=-0.080 | Revisions Net=-1 | Growth EPS=+12.2% | Growth Revenue=-0.2%

Additional Sources for ALSN Stock

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