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ALSN

Allison Transmission Holdings NYSE:ALSN Stock Report

Last Price

US$35.42

Market Cap

US$3.4b

7D

3.5%

1Y

1.3%

Updated

06 Oct, 2022

Data

Company Financials +
ALSN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends5/6

ALSN Stock Overview

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.

Allison Transmission Holdings, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Allison Transmission Holdings
Historical stock prices
Current Share PriceUS$35.42
52 Week HighUS$42.00
52 Week LowUS$32.55
Beta0.91
1 Month Change-1.34%
3 Month Change-6.52%
1 Year Change1.35%
3 Year Change-18.97%
5 Year Change-4.12%
Change since IPO51.37%

Recent News & Updates

Sep 27
What Does Allison Transmission Holdings, Inc.'s (NYSE:ALSN) Share Price Indicate?

What Does Allison Transmission Holdings, Inc.'s (NYSE:ALSN) Share Price Indicate?

Allison Transmission Holdings, Inc. ( NYSE:ALSN ), might not be a large cap stock, but it received a lot of attention...

Sep 19

Allison Transmission to integrate electric axles into Anadolu Isuzu's trucks, buses

Allison Transmission (NYSE:ALSN) on Monday announced a joint cooperation agreement with Anadolu Isuzu, a bus and truck manufacturer based in Istanbul, Turkey . Allison eGen Power 100S electric axles will be integrated into Anadolu Isuzu's light-duty truck and midibus platforms for refuse, distribution and public transportation applications. Anadolu Isuzu is a joint venture between Anadolu Group, Isuzu Motors, Itochu and HICOM.

Sep 07

Allison Transmission Holdings: Additional Upside Is Warranted

Summary Despite concerns over the broader economy, Allison Transmission Holdings has held up really well and even continues to grow. Management expects results to remain strong through the rest of this year. Add on top of this how cheap shares are, and the business makes for a compelling prospect at this time. Vehicles are a significant part of the modern world. Whether it be for commercial, personal, or defense purposes, vehicles help to get us and the things we are transporting from point A to point B. One company dedicated to producing vehicle propulsion solutions for the commercial and defense space, with a particular focus on heavy-duty fully automatic transmissions and commercial duty electrified propulsion systems is Allison Transmission Holdings (ALSN). Despite pain in the broader economy and concerns of a potential slowdown, this particular enterprise has been doing remarkably well. Revenue continues to climb and profitability has largely followed along. Add on top of this the fact that shares of the company look quite cheap at this time, both on an absolute basis and relative to similar players, and I cannot help but to keep my 'buy' rating on the company right now. Checking in with Allison Transmission The last time I wrote an article about Allison Transmission was in November of 2021. In that article, I relayed to my readers that the company did have a rather bumpy time during the 2020 timeframe because of the COVID-19 pandemic. But absent that, the company had demonstrated an attractive operating history. I was expecting overall performance in 2021 to look better than it was in 2020 and shares were trading cheap enough that I could not help but to rate the business a 'buy' at that time, reflecting my opinion that it would likely outperform the broader market for the foreseeable future. Since then, things have gone even better than I anticipated. While the S&P 500 has decreased by 16.5%, shares of Allison Transmission have generated a return for investors of 0.2%. Comparatively speaking, this was a significant outperformance greater than anything I thought would have occurred. Author - SEC EDGAR Data To see why the company has fared so well, we need only look at recent financial performance. Consider how the company ended its 2021 fiscal year. For that year, sales came in at $2.40 billion. Although this was still lower than the $2.71 billion in revenue the company peaked at in 2018, it did represent an increase of 15.4% over the $2.08 billion in sales generated in 2020. Growth in the 2021 fiscal year was driven by strength across the board. Although defense revenue inched up by just 2%, on-highway and off-highway revenue associated with operations outside of North America grew by 36%. Service parts, support equipment, and other related offerings grew by 11%, while the North America on highway category jumped by 9%. On a percentage basis, the greatest strength for the company came from the off-highway operations for North America. Sales there skyrocketed by 346%. This was driven by higher demand for hydraulic fracturing applications as well as by price increases on some of the company's products. However, the overall sales increase was not all that high, with revenue growing from just $13 million in 2020 to $58 million in 2021. When it comes to bottom line results, the company posted strong performance as well. Net income jumped from $299 million in 2020 to $442 million last year. Of course, we should also pay attention to other profitability metrics. Operating cash flow, for instance, also fared well, climbing from $561 million to $635 million. Meanwhile, EBITDA for the company also improved, rising from $732 million to $844 million over the same one-year timeframe. It is true that the company's bottom line results are still lower than what was seen in 2019 before the pandemic struck. But the fact that the company was posting evidence of a solid recovery is great in and of itself. Author - SEC EDGAR Data So far, the 2022 fiscal year has looked even better. Driven by strong demand and price increases, the company has seen its revenue climb to $1.34 billion in the first half of 2022. This compares to the $1.19 billion in revenue the company reported for the first two quarters of the 2021 fiscal year. Although the company has continued to invest in innovative new products, it's difficult to peg any of its revenue increase to any one of these or even a group of them. In addition, the company did not really benefit materially from any acquisitions recently. The most recent acquisition was completed in March of this year and involved the purchase of India-based AVTEC Ltd.'s off-highway Transmission business and its Madras Export Processing Zone off-highway component machining business. But this was done for cash consideration of just $23 million. With this rise in revenue, the company also saw its profits rise. Net income of $251 million in the first half of 2022 beat out the $230 million reported one year earlier. Operating cash flow did decline year over year, dropping from $271 million to $229 million. But if we were to adjust for changes in working capital, the metric would have risen from $343 million to $358 million. We also saw an increase when it came to EBITDA, with the metric climbing from $435 million in the first half of 2021 to $471 million the same time this year. Even though the company was able to benefit from keeping its selling, general, and administrative costs flat year over year, it did suffer as a result of other factors from a margin perspective, such as inflationary pressures pushing its gross profit margin down by roughly 1.5%. Though this may not seem like much, a 1.5% change in revenue from 2021 would translate to $36 million in lost profits for the company. Allison Transmission Holdings For the 2022 fiscal year as a whole, management expects revenue to come in fairly strong. Sales should be between $2.65 billion and $2.75 billion. At the midpoint, that would translate to a year-over-year increase of 12.4%. That's roughly in line with the 12.6% increase the company saw in the first half of the year. The company has also been very detailed about what to expect from a profitability perspective. Net income, for instance, should come in between $450 million and $500 million. Operating cash flow should be between $590 million and $660 million, while EBITDA should be between $885 million and $955 million.

Shareholder Returns

ALSNUS MachineryUS Market
7D3.5%5.6%3.3%
1Y1.3%-13.9%-20.4%

Return vs Industry: ALSN exceeded the US Machinery industry which returned -12.5% over the past year.

Return vs Market: ALSN exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is ALSN's price volatile compared to industry and market?
ALSN volatility
ALSN Average Weekly Movement4.7%
Machinery Industry Average Movement5.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.9%

Stable Share Price: ALSN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ALSN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19153,400Dave Graziosihttps://www.allisontransmission.com

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. It 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. The company markets its transmissions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name.

Allison Transmission Holdings, Inc. Fundamentals Summary

How do Allison Transmission Holdings's earnings and revenue compare to its market cap?
ALSN fundamental statistics
Market CapUS$3.41b
Earnings (TTM)US$463.00m
Revenue (TTM)US$2.55b

7.4x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALSN income statement (TTM)
RevenueUS$2.55b
Cost of RevenueUS$1.36b
Gross ProfitUS$1.20b
Other ExpensesUS$734.00m
EarningsUS$463.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 26, 2022

Earnings per share (EPS)4.81
Gross Margin46.90%
Net Profit Margin18.14%
Debt/Equity Ratio335.0%

How did ALSN perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

17%

Payout Ratio