Motor Vehicle Parts & Accessories
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully automatic transmissions for medium-and heavy-duty commercial vehicles, and medium-and heavy-tactical U.S. defense vehicles worldwide. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.
Discounted Cash Flow Valuation of Allison Transmission Holdings Inc
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +20.03%.
The trend of Net Margin over the past 5 years is -1.11%.
The average ROA over the past 5 years is +16.84%.
The trend of ROA over the past 5 years is -0.63%.
The average ROE over the past 5 years is +69.58%.
The trend of ROE over the past 5 years is -5.19%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 4.18.
The trend of Debt/FCF over the past 5 years is 0.32.
Graham’s Stability measure stands at 0.51.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +4.13%.
The trend of Revenue growth rate over the past 5 years is +0.52%.
The Earnings CAGR over the past 5 years is +1.05%.
The trend of Earnings growth rate over the past 5 years is -2.41%.
The Equity CAGR over the past 5 years is +4.87%.
The trend of Equity growth rate over the past 5 years is +3.76%.
The FCF CAGR over the past 5 years is -2.88%.
The trend of FCF growth rate over the past 5 years is -3.11%.