Allison Transmission Holdings Inc
$126.69
+1.04 (+0.83%) · delayed · Nov 13, 2026
Five-year price
52w $78.77 to $137.62
- Market cap
- $10.4B
- Enterprise value
- $11.8B
- P/E
- 17.3×
- 16.5× on 3y avg EPS
- EV / EBIT
- 13.4×
- FCF yield
- 6.4%
- ROIC
- 20.9%
- Debt / equity
- 1.55
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 21.4%
- ●ROE > 15% (5y avg)5y avg ROE 52.5%
- ●Stable operating marginsMargin volatility 1.1% (σ, 5y)
- ●Earnings convert to cashFCF / net income 98% (5y avg)
- ●Growing revenueRevenue CAGR 5y 7.7%
- ●Shrinking share countDiluted shares -25.4% over 5y
Value
20
- ○P/E below 15P/E 17.3
- ○EV/EBIT below 12EV/EBIT 13.4
- ●FCF yield above 6%FCF yield 6.4%
- ○Price below Graham NumberGraham Number $61.23
- ○P/B below 3P/B 5.6
Safety
60
- ○Debt / equity below 0.5D/E 1.55
- ●Debt payable in < 4 yrs of earningsNet debt $1.4B
- ○Interest coverage > 8xCoverage 7.3x
- ●Current ratio > 1.5Current ratio 4.85
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
71
- ●Adequate size (revenue > $2B)Revenue $3.0B
- ●Strong condition (current ratio ≥ 2)Current ratio 4.85
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 145%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 16.5
- ○P/E × P/B ≤ 22.5Product 91.9
Valuation lab
What do you have to believe?
At $126.69, the market is pricing in about 4.1% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $1.4B · 82M shares · 5y revenue CAGR 7.7%
Intrinsic value
$175.28
Price
$126.69
Margin of safety
28%
What the price implies
The market is paying for 4.1% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
60% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,840 | 2,262 | 2,713 | 2,698 | 2,081 | 2,402 | 2,769 | 3,035 | 3,225 | 3,010 |
| Gross profit | 864 | 1,131 | 1,422 | 1,394 | 998 | 1,145 | 1,297 | 1,470 | 1,529 | 1,463 |
| Operating income | 452 | 652 | 923 | 892 | 534 | 669 | 784 | 919 | 992 | 880 |
| Operating margin | 24.6% | 28.8% | 34.0% | 33.1% | 25.7% | 27.9% | 28.3% | 30.3% | 30.8% | 29.2% |
| Pre-tax income | 341 | 527 | 805 | 768 | 393 | 572 | 645 | 827 | 897 | 804 |
| Income tax | 126 | 23 | 166 | 164 | 94 | 130 | 114 | 154 | 166 | 181 |
| Net income | 215 | 504 | 639 | 604 | 299 | 442 | 531 | 673 | 731 | 623 |
| EPS (diluted) | 1.27 | 3.36 | 4.78 | 4.91 | 2.62 | 4.13 | 5.53 | 7.40 | 8.31 | 7.33 |
| Diluted shares | 169 | 150 | 134 | 123 | 114 | 107 | 96 | 91 | 88 | 85 |
Who owns it