Allison Transmission Holdings Inc

Consumer Discretionary
Auto Parts:O.E.M.
www.allisontransmission.com

Earnings Score
Moat Score
Safety Score

Market Cap $9.95B
PE 14
Debt $2.42B
Cash $788.00M
EV $11.58B
FCF $708.00M

Earnings

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Sales & Net Margins

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Earnings	$726.00M
EBIT	$982.00M
ROE	45%
ROA	18%
FCF	$708.00M
Equity	$1.62B
Growth Stability	51%
PE	13.7
PEG	0.99
PB	6.14
P/FCF	14.05
P/S	3.1
Price/Cash	0.08
Debt/Equity	1.49
Debt/FCF	3.42
Net Margins	23%
Gross Margins	48%
Op. Margins	31%
Earnings CAGR	12%
Sales Growth YoY	12%
Sales Growth QoQ	1%
Sales CAGR	5%
FCF CAGR	-0%
Equity CAGR	-0%
Earnings Stability	0.4
Earnings Growth YoY	27%
Earnings Growth QoQ	7%
Earnings CAGR 5Y	14%

Sales CAGR 5Y	8%
FCF CAGR 5Y	6%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	20%
Equity CAGR 3Y	42%
Market Cap	$9.95B
Revenue	$3.20B
Dividend Yield	1%
Payout Ratio	12%
Assets	$5.37B
Total Debt	$2.42B
Cash	$788.00M
Shares Outstanding	87M
EV	11.58B
Earnings Score	34%
Moat Score	97%
Safety Score	64%
Final Score	65%
Working Capital	1.03B
Current Ratio	2.83
Gross Profit	$1.53B
Shares Growth 3y	-6%
Equity Growth QoQ	9%
Equity Growth YoY	37%

Assets & ROA

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Stockholders Equity & ROE

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Allison Transmission Holdings is the world's largest manufacturer of fully automatic transmissions for commercial vehicles, which serve as fuel-saving alternatives to less expensive manual and automated manual transmissions. It supplies its products to several end markets, including on- and off-highway equipment and military vehicles. The company generates the majority of its revenue from the United States.

SEC Filings

Direct access to Allison Transmission Holdings Inc (ALSN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Allison Transmission Holdings Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Allison Transmission Holdings Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 40%

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Allison Transmission Holdings Inc Discounted Cash Flow

Fully customizable DCF calculator online for Allison Transmission Holdings Inc.

Years

Calculation mode

= $7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$708M	$706M	$705M	$703M	$702M	$700M	$699M	$697M	$696M	$694M	$692M	$6.9B
DCF		$642M	$583M	$528M	$479M	$435M	$394M	$358M	$324M	$294M	$267M	$2.7B
Value	$7B

Competitiveness and MOAT

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	9%	12%	22%	24%	22%	14%	18%	19%	22%	23%
ROA	-	10%	11%	16%	22%	20%	12%	15%	17%	18%	18%
ROE	-	15%	20%	73%	97%	77%	40%	70%	61%	55%	45%

Good Net Margins (22.89%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.65	4.23	4.56	3.46	3.78	5.7	5.52	5.17	3.83	3.42
Debt over Equity	1.82	2.04	2.04	3.76	3.87	3.27	3.37	4	2.9	2.05	1.49
Growth Stability	-	-	-	100%	100%	100%	51%	86%	100%	100%	51%

Neutral Debt/FCF ratio (3.42)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.49)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (51%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-7%	-7%	23%	20%	-1%	-23%	15%	15%	10%	8%
Earnings YoY growth	-	-20%	18%	135%	27%	-5%	-50%	48%	20%	27%	14%
Equity YoY growth	-	-15%	-9%	-36%	-4%	19%	-3%	-16%	38%	41%	18%
FCF YoY growth	-	6%	-0%	9%	30%	-8%	-34%	3%	7%	34%	6%