(ALSN) Allison Transmission - Overview
Sector: Consumer Cyclical | Industry: Auto Parts | Exchange: NYSE (USA) | Market Cap: 10.261m USD | Total Return: 12.5% in 12m
Automatic Transmissions, Electric Propulsion, Replacement Parts, Defense Kits
Total Rating 58
Safety 49
Buy Signal -0.49
Auto Parts
Industry Rotation: +2.1
Industry Rotation: +2.1
Market Cap:
10.3B
Avg Turnover: 106M
Avg Turnover: 106M
Risk 3d forecast
Volatility35.0%
VaR 5th Pctl5.89%
VaR vs Median2.07%
Reward TTM
Sharpe Ratio0.42
Rel. Str. IBD70.4
Rel. Str. Peer Group64.8
Character TTM
Beta1.003
Beta Downside0.917
Hurst Exponent0.595
Drawdowns 3y
Max DD33.59%
CAGR/Max DD1.05
CAGR/Mean DD3.58
EPS (Earnings per Share)
EPS CAGR: 20.93%
EPS Trend: 34.6%
EPS Trend: 34.6%
Last SUE: 3.16
Qual. Beats: 1
Qual. Beats: 1
Revenue
Rev. CAGR: 22.15%
Rev. Trend: 53.3%
Rev. Trend: 53.3%
Last SUE: 0.85
Qual. Beats: 0
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Garp
Description: ALSN Allison Transmission
Allison Transmission Holdings (ALSN) designs and manufactures fully automatic transmissions and electric propulsion systems for medium- and heavy-duty commercial and defense vehicles. Its product portfolio supports diverse applications, including municipal refuse, emergency services, construction, and transit buses. The company operates under the Allison Transmission and ReTran brand names, providing both new and remanufactured solutions alongside replacement parts and engineering services.
The company utilizes a high-barrier business model centered on long-term relationships with global original equipment manufacturers (OEMs) and the U.S. government. As a leader in the heavy transportation equipment sector, Allison benefits from a large installed base that generates recurring revenue through the sale of proprietary replacement parts and service kits. The sector is currently transitioning toward electrification, prompting established manufacturers to integrate hybrid and fully electric axles into traditional drivetrain architectures.
Investors can evaluate the company’s specific valuation metrics and historical growth trends on ValueRay. Founded in 1915 and headquartered in Indianapolis, Allison Transmission remains a critical component provider for both on-highway and off-highway global markets.
- North American Class 8 truck production cycles drive core revenue performance
- Military vehicle modernization programs increase long-term defense segment contract volume
- Transition to electric propulsion systems requires sustained high research and development
- Global infrastructure spending accelerates demand for off-highway and construction equipment
- Service parts and remanufactured unit sales provide stable high-margin recurring income
Piotroski VR‑10 (Strict)
6.5
| Net Income: 543.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -4.59 > 1.0 |
| NWC/Revenue: 28.90% < 20% (prev 32.85%; Δ -3.95% < -1%) |
| CFO/TA 0.09 > 3% & CFO 805.0m > Net Income 543.0m |
| Net Debt (3.96b) to EBITDA (993.0m): 3.98 < 3 |
| Current Ratio: 1.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (84.0m) vs 12m ago -2.38% < -2% |
| Gross Margin: 40.79% > 18% (prev 0.48%; Δ 4.03k% > 0.5%) |
| Asset Turnover: 51.72% > 50% (prev 59.67%; Δ -7.95% > 0%) |
| Interest Coverage Ratio: 6.34 > 6 (EBITDA TTM 993.0m / Interest Expense TTM 132.0m) |
Altman Z''
1.59
| A: 0.12 (Total Current Assets 2.30b - Total Current Liabilities 1.25b) / Total Assets 8.75b |
| B: 0.00 (Retained Earnings 29.0m / Total Assets 8.75b) |
| C: 0.12 (EBIT TTM 837.0m / Avg Total Assets 7.06b) |
| D: -0.01 (Book Value of Equity -59.0m / Total Liabilities 6.85b) |
| Altman-Z'' Score: 1.59 = BB |
Beneish M
-1.94
| DSRI: 2.05 (Receivables 892.0m/381.0m, Revenue 3.65b/3.20b) |
| GMI: 1.18 (GM 40.79% / 48.06%) |
| AQI: 0.98 (AQ_t 0.55 / AQ_t-1 0.56) |
| SGI: 1.14 (Revenue 3.65b / 3.20b) |
| TATA: -0.03 (NI 543.0m - CFO 805.0m) / TA 8.75b) |
| Beneish M-Score: -1.94 (Cap -4..+1) = B |
What is the price of ALSN shares?
As of May 17, 2026, the stock is trading at USD 116.99 with a total of 767,218 shares traded.
Over the past week, the price has changed by -5.79%, over one month by -7.02%, over three months by -0.15% and over the past year by +12.53%.
Over the past week, the price has changed by -5.79%, over one month by -7.02%, over three months by -0.15% and over the past year by +12.53%.
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.
- StrongBuy: 2
- Buy: 1
- Hold: 5
- Sell: 2
- StrongSell: 0
What are the forecasts/targets for the ALSN price?
| Analysts Target Price | 136.5 | 16.7% |
Allison Transmission (ALSN) - Fundamental Data Overview
as of 14 May 2026
P/E Trailing = 19.2411 P/E Forward = 13.4953
P/S = 2.8112
P/B = 5.412
P/EG = 0.7288
Revenue TTM = 3.65b USD
EBIT TTM = 837.0m USD
EBITDA TTM = 993.0m USD
Long Term Debt = 2.88b USD (from longTermDebt, last fiscal year)
Short Term Debt = 20.0m USD (from shortTermDebt, last quarter)
Debt = 4.27b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.96b USD (from netDebt column, last quarter)
Enterprise Value = 14.22b USD (10.26b + Debt 4.27b - CCE 311.0m)
Interest Coverage Ratio = 6.34 (Ebit TTM 837.0m / Interest Expense TTM 132.0m)
EV/FCF = 21.54x (Enterprise Value 14.22b / FCF TTM 660.0m)
FCF Yield = 4.64% (FCF TTM 660.0m / Enterprise Value 14.22b)
FCF Margin = 18.08% (FCF TTM 660.0m / Revenue TTM 3.65b)
Net Margin = 14.88% (Net Income TTM 543.0m / Revenue TTM 3.65b)
Gross Margin = 40.79% ((Revenue TTM 3.65b - Cost of Revenue TTM 2.16b) / Revenue TTM)
Gross Margin QoQ = 28.88% (prev 47.76%)
Tobins Q-Ratio = 1.62 (Enterprise Value 14.22b / Total Assets 8.75b)
Interest Expense / Debt = 1.43% (Interest Expense 61.0m / Debt 4.27b)
Taxrate = 15.15% (20.0m / 132.0m)
NOPAT = 710.2m (EBIT 837.0m * (1 - 15.15%))
Current Ratio = 1.85 (Total Current Assets 2.30b / Total Current Liabilities 1.25b)
Debt / Equity = 2.24 (Debt 4.27b / totalStockholderEquity, last quarter 1.90b)
Debt / EBITDA = 3.98 (Net Debt 3.96b / EBITDA 993.0m)
Debt / FCF = 5.99 (Net Debt 3.96b / FCF TTM 660.0m)
Total Stockholder Equity = 1.84b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.69% (Net Income 543.0m / Total Assets 8.75b)
RoE = 29.49% (Net Income TTM 543.0m / Total Stockholder Equity 1.84b)
RoCE = 17.71% (EBIT 837.0m / Capital Employed (Equity 1.84b + L.T.Debt 2.88b))
RoIC = 16.20% (NOPAT 710.2m / Invested Capital 4.38b)
WACC = 7.07% (E(10.26b)/V(14.53b) * Re(9.51%) + D(4.27b)/V(14.53b) * Rd(1.43%) * (1-Tc(0.15)))
Discount Rate = 9.51% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.45 | Cagr: -2.51%
[DCF] Terminal Value 83.05% ; FCFF base≈656.4m ; Y1≈715.8m ; Y5≈903.1m
[DCF] Fair Price = 187.9 (EV 19.54b - Net Debt 3.96b = Equity 15.58b / Shares 82.9m; r=7.07% [WACC]; 5y FCF grow 10.30% → 3.0% )
EPS Correlation: 34.60 | EPS CAGR: 20.93% | SUE: 3.16 | # QB: 1
Revenue Correlation: 53.32 | Revenue CAGR: 22.15% | SUE: 0.85 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.48 | Chg30d=-0.16% | Revisions=N/A | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.40 | Chg30d=+3.57% | Revisions=+20% | Analysts=5
EPS current Year (2026-12-31): EPS=9.38 | Chg30d=-0.62% | Revisions=N/A | GrowthEPS=+23.7% | GrowthRev=+92.0%
EPS next Year (2027-12-31): EPS=11.40 | Chg30d=-2.31% | Revisions=+0% | GrowthEPS=+21.6% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +20%