Stock Analysis
ALLISON TRANSMISSION HOLDINGS, INC.ALSN
P/E 17.45×· 5Y range 6.45–21.09×· top 13% of history
Sector: Consumer Cyclical · Industry: Motor Vehicle Parts & Accessories
AnalystsBuy17 analystsP/E 17.5× sits at the 87th percentile of its 5.065023956194388-year history.
Cash covers 52% of debt · FY 2025.
PMP Verdict
High quality, but expensive
Strengths
- Profitability85
- Quality85
Risks
- Valuation60
Excellent business. Weak entry price.
Bull Case
- ✓ROE 28.3% — efficient capital deployment
- ✓Interest coverage 10.7× — debt well covered
What's happening with ALSN
Profile
Strong moat, profitability, earnings quality and financial health.
How is each axis scored?
- Valuation60/100 · Moderate
- P/E vs own history (87th pct)0/25
- FCF yield (8.0%)20/25
- P/S (2.1x)20/25
- EV/EBIT (12.3x)20/25
- Growth69/100 · Moderate
- Revenue CAGR (5.8%)12/25
- Net income CAGR (9.0%)12/25
- EPS CAGR 5Y (15.4%)20/25
- Fwd implied growth (64.9%)25/25
- Profitability85/100 · Strong
- ROIC (20.9%)20/25
- ROE (28.3%)25/25
- Net margin (12.0%)20/25
- Operating margin (19.6%)20/25
- Financial Health80/100 · Strong
- Altman Z (2.67)18/25
- Current ratio (4.85)25/25
- Interest coverage (10.7x)25/25
- Net cash / debt (D/A 23%)12/25
- Quality85/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.30)20/25
- FCF conversion (139%)25/25
- Margin stability (σ 4.4%)25/25
- Moat95/100 · Strong
- ROIC >12% years (9/10 yrs)25/25
- Median gross margin (48.2%)20/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 11.7%)25/25
Risk Flags
- ⚠P/E 17.5× at top 13% of 5-year history
About ALLISON TRANSMISSION HOLDINGS, INC.
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Show more
Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
Headquarters: Indianapolis, IN · Employees: 4,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
60BP/E (TTM)17.5xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 6.4x–21.1x · 87th pct
P/FCF12.6xA
Grade A: CheapPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield8.0%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 4.6%–14.3% · 34th pct
P/S (TTM)2.10xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.2x–3.8x · 48th pct
EV/EBIT12.3xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 7.3x–18.7x · 83rd pct
EV/Sales3.0xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E10.6xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio4.94xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield1.01%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio17.8%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
85AROIC20.9%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE28.3%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA7.3%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin12.0%A
Grade A: HighNet Income / Revenue
Operating Margin19.6%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin36.4%C
Grade C: AverageGross Profit / Revenue
FCF Margin16.7%A
Grade A: HighFCF / Revenue
True FCF Margin16.1%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
69BRevenue CAGR5.8%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR9.0%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)15.4%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth64.9%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-25.7%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income5.7%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.7%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
80AAltman Z-Score2.67C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio4.85xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.17xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage10.7xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment1.9yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT1.6xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity1.55xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.52xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
85APiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.30A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion139.3%A
Grade A: StrongFCF / Net Income
Margin Stability4.4%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue4.6%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.61xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Shivram Krishna Filed | Shivram Krishna | Grant / award | +3 | |
HAZNEDAR CAROLANN I Filed | HAZNEDAR CAROLANN I | Grant / award | +52 | |
Graziosi David S. Filed | Graziosi David S. | Grant / award | +131 | |
Price Michael Craig Filed | Price Michael Craig | Grant / award | +38 | |
Mell Scott A Filed | Mell Scott A | Grant / award | +28 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Perna Gustave Filed | Perna Gustave | Grant / award | +3 | |
BARBOUR D. SCOTT Filed | BARBOUR D. SCOTT | Grant / award | +3 | |
Bohley G Frederick Filed | Bohley G Frederick | Grant / award | +35 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
95A+ROIC >12% Years9/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)48.2%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor11.7%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$6.41
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$4.83
Cash & short-term investments per share (Finnhub)
Book Value / Share$23.94
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$2.88B
Total debt obligations (short + long term)
Cash & Equiv.$1.50B
Cash and short-term investments
Net Debt$1.39B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$1.87B
Shareholders' equity (book value)
Asset / Liability1.44xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$9.23B
Current Market Capitalization
Beta1.07B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: ALLISON TRANSMISSION HOLDINGS, INC. (ALSN)
ALSN is down 0.67% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for ALLISON TRANSMISSION HOLDINGS, INC.. Altman Z-Score of 2.67 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out. Beneish M-Score of -2.30 suggests a low likelihood of earnings manipulation.
- ALLISON TRANSMISSION HOLDINGS, INC. converts about 17% of revenue into free cash flow — strong cash generation.
- Takes ~1.9 years to repay net debt from free cash flow.
- Return on equity of 28.3% is well above the market average.
See how ALSN ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ALSN moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 1 | Regular | 116.21 | +2.60% | 2.09 |
Frequently Asked Questions about ALSN
What is the current ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) stock price?
ALSN is trading at $111.80 at the last market close, down 0.67% on the session. PreMarketPrice tracks ALSN pre-market, intraday and after-hours prices.
Is ALSN stock a buy right now?
PreMarketPrice's quantitative model rates ALLISON TRANSMISSION HOLDINGS, INC.'s financial health at 80/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ALSN stock overvalued?
ALLISON TRANSMISSION HOLDINGS, INC. trades at a trailing P/E of 17.5 and our valuation score rates it 60/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does ALLISON TRANSMISSION HOLDINGS, INC. report earnings?
No confirmed earnings date is currently scheduled for ALSN. The Earnings section lists recent reports and updates as dates are announced.
What sector does ALLISON TRANSMISSION HOLDINGS, INC. operate in?
ALLISON TRANSMISSION HOLDINGS, INC. operates in the Consumer Cyclical sector, within the Motor Vehicle Parts & Accessories industry. The Related Stocks section lists sector peers for comparison.
What does ALLISON TRANSMISSION HOLDINGS, INC. do?
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles.
About ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) Stock
ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Motor Vehicle Parts & Accessories industry. As of the latest update, ALLISON TRANSMISSION HOLDINGS, INC. is trading at $111.80, down 0.67% on the day with a market capitalization of $9.2 billion. The financial health score for ALSN is 80/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ALSN stock.
ALSN Stock Analysis & Key Metrics
On PreMarketPrice, you can track ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) across multiple dimensions:
- Pre-market price & movement: Real-time ALSN stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ALSN with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for ALLISON TRANSMISSION HOLDINGS, INC. across multiple reporting periods.
- Financial health score: A composite score of 80/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ALSN.
- Sector peers: Compare ALSN against 6 other consumer cyclical stocks on key financial metrics.
Is ALSN a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) as an investment. The financial health score of 80/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.