Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions.
It is a $9.07B consumer company. Revenue grew 37.6% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~1.9 years of free cash flow. It trades at 17.1× earnings — in the most expensive third of its own history.
- Website
- allisontransmission.com
- Location
- Indianapolis, IN
- Employees
- 4 000
- Sector
- Consumer Cyclical
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, quality and moat.
Valuation65
- P/E vs own history87th pct · 0/25
- FCF yield8.1% · 25/25
- P/S2.1x · 20/25
- EV/EBITDA12.3x · 20/25
Growth74
- Revenue CAGR5.8% · 12/25
- Net income CAGR9.0% · 12/25
- EPS CAGR ~5Y22.8% · 25/25
- Fwd implied growth62.0% · 25/25
Profitability85
- ROIC19.1% · 20/25
- ROE27.9% · 25/25
- Net margin12.0% · 20/25
- Operating margin19.6% · 20/25
Health55
- Altman Zn/a · 0/25
- Current ratio1.81 · 18/25
- Interest coverage10.7x · 25/25
- Net cash / debtD/A 23% · 12/25
Quality85
- Piotroski F6/9 · 15/25
- Beneish M-2.30 · 20/25
- FCF conversion139% · 25/25
- Margin stabilityσ 4.4% · 25/25
Moat95
- ROIC >12% years9/10 yrs · 25/25
- Median gross margin48.2% · 20/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 11.7% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2024FinancialBest year on record$731M net income
- 2020ProductAllison introduced a line of motor-integrated electric axles, branded eGen Power
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$1.84B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2003Product;First generation GM-Allison introduced hybrid vehicle technology for transit buses in 2003
- 1973ProductGVW highway vehicles; Allison model HT-740 *April 1973—First fully automatic transmission for large trucks, scrapers…
- 1969ProductArmy main battle tank is unveiled in Washington, D.C. *February 1969—Allison introduces electric gearshift control…
- 1955ProductThe VS-2 was introduced in 1955, which added a two-speed input splitter
- 1950MilestoneThe Allison 850-series torque converter was a crucial component in the post-war development of self-propelled…
- 1948ProductAllison designed, developed and manufactured the first-ever automatic transmissions for heavy-duty vehicles…
- 1948MilestoneIn addition, Allison marketed transmissions for off-highway heavy-duty vehicles under the brand Powershift TORQMATIC
- 1934MilestoneThe result was the V1710 12-cylinder aircraft engine and it made the company, renamed to the Allison Division of GM…
- 1911MilestoneAllison's new track held the first Indianapolis 500 mile race
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Revenue growing 37.6% year over year
- Strong cash conversion — FCF is 16.7% of revenue
- Interest covered 10.7× by operating earnings
- High returns on invested capital (ROIC 19.1%)
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+37.6% YoY
- Profitable — makes more than it spends$529M TTM
- Profit growing — earnings are higher than last year+9.8% YoY
- Generates cash — cash left after running and investing$737M TTM
- Debt under control — could handle its obligations~1.9y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$9.07B market cap
- Not printing shares — share count not ballooning — you keep your slice-25.5% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 43/100
- Pays a dividend — returns cash to shareholdersyield 1.04%
- Valuation not extreme — price not wildly above earningsP/E 17.1
Peer comparisonAllison Transmission Holdings, Inc. vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| ALSN this company | $9.1B | 17.1 | +37.6% | 12.0% | Mixed |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| NFLX NetFlix Inc | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| HD Home Depot, Inc. | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| MCD McDonald's Corporation | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
Head-to-head: ALSN vs AMZN · ALSN vs TSLA · ALSN vs NFLX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/ALSN
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of ALSN on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $109.86 · market cap $9.07B.