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Allison Transmission Holdings, Inc. (ALSN) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Allison Transmission Holdings, Inc.

ALSNMarket cap $9.15BPrice $110.8

Country🇺🇸United States

SectorIndustrials

IndustryMachinery

Makes automatic transmissions for trucks, buses, and military vehicles — the largest maker of them in the world. Nearly every school bus and garbage truck in America relies on their gearboxes to keep running.

In Bastion Portfolios?

52W Return+38%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)+97%10

Rev CAGR (3y)+29%10

Rev CAGR (5y)+18%9

Earnings Forecast

EPS Growth Y+1+34%9

EPS Growth Y+2+11%7

EPS Growth Y+3+17%8

Quality

Margins

EBIT Margin22%8

Net Income Margin12%6

Free Cash Flow Margin17%7

Debt

Net Debt/EBITDA3.23

Efficiency

ROE28%9

ROA7%7

Earnings Stability88

GEAR+VERY STRONG99

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)118

P/E Ratio (Forward 3y)99

P/BV4.63

EV Multiples

EV/EBITDA Fwd97

EV/EBIT Fwd118

Yield

Free Cash Flow Yield8.1%8

Dividend Yield1.0%3

Momentum

Short term

1 month return-15%1

3 month return-1%6

YTD return+14%7

Mid term

Price vs 52wHigh81%6

1 year return+35%8

Long term

3 year return+93%7

5 year return+235%9

Risk Shield

Price Risk

Beta0.95

Volatility31%7

Free Cash Flow

Free Cash Flow Margin17%7

Free Cash Flow Yield8.1%8

Quality

ROCE16%8

Earnings Stability88

Net Debt/EBITDA3.23

02Growth

Is it actually growing, and how fast?

ALSNAllison Transmission Holdings

Revenue FY25$3.0B

GROWTH RATING↗

VERY STRONG92 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+97%10

Revenue, next 3Y, CAGR+29%10

Revenue, next 5Y, CAGR+18%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+34%9

EPS growth, FY27E+11%7

EPS growth, FY28E+17%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 92% of companies worldwide.

Revenue is set to grow 29%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 3%/yr over the last 3 years and is set to grow 29%/yr from here.

The runway holds up: revenue is set to grow 18%/yr over five years.9/10

WATCH

Earnings are set to grow slower than sales (EPS about 17%/yr vs revenue 29%/yr), so margins are under pressure.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up. The one thing to watch: earnings are set to grow slower than sales.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE60 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-15%1

3-month return-1%6

YTD return+14%7

MID & LONG-TERM▾SCORE

% of 52-week high81%6

1-year return+35%8

3-year return+93%7

5-year return+235%9

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +93% over three years and +235% over five, ahead of 70% of the market.

It's up 35% over the past year, but 19% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+14%).

WATCH

Returns sit at the market level over three months (-1%).

WEAKNESSES

The stock is underperforming over the past month (-15%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over the past month.

04Value

Are you paying a fair price for it?

Stop guessing on Allison Transmission Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

ALSNAllison Transmission Holdings

Revenue FY25$3.0B

GROWTH RATING↗

VERY STRONG92 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+97%10

Revenue, next 3Y, CAGR+29%10

Revenue, next 5Y, CAGR+18%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+34%9

EPS growth, FY27E+11%7

EPS growth, FY28E+17%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 92% of companies worldwide.

Revenue is set to grow 29%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 3%/yr over the last 3 years and is set to grow 29%/yr from here.

The runway holds up: revenue is set to grow 18%/yr over five years.9/10

WATCH

Earnings are set to grow slower than sales (EPS about 17%/yr vs revenue 29%/yr), so margins are under pressure.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up. The one thing to watch: earnings are set to grow slower than sales.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE60 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-15%1

3-month return-1%6

YTD return+14%7

MID & LONG-TERM▾SCORE

% of 52-week high81%6

1-year return+35%8

3-year return+93%7

5-year return+235%9

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +93% over three years and +235% over five, ahead of 70% of the market.

It's up 35% over the past year, but 19% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+14%).

WATCH

Returns sit at the market level over three months (-1%).

WEAKNESSES

The stock is underperforming over the past month (-15%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over the past month.

04Value

Are you paying a fair price for it?

Stop guessing on Allison Transmission Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community