Allison Transmission Holdings (ALSN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Allison Transmission Holdings

NYSE•Consumer Cyclical•Auto Parts

$117.10-2.66(-0.02%)Market closed

Market Cap

$9.72B

P/E

18.4x

P/S

2.2x

P/B

4.9x

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems 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 of off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company also provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. In addition, it 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. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

How this company scores

GoodMetricSide Score: 62/100

Strongest: Cash & Earnings Quality (21/25); weakest: Balance Sheet & Red Flags (7/25).

Profitability19/25

Growth15/25

Balance Sheet & Red Flags7/25

Cash & Earnings Quality21/25

Strengths

Growing revenueStrong marginsHigh ROEConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 18.4x5y range 6.4x – 18.4x

Currently above its 20-quarter median.

P/S · 2.2x5y range 1.2x – 2.9x

Currently near its 20-quarter median.

P/B · 4.9x5y range 3.9x – 5.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 31.9% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Leverage Risk

Watch

D/E ratio of 2.1 is elevated and rising. Watch for further debt accumulation.

Price & Volume

Market Cap $9.72B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $4.40B
Q. Revenue: $1.57B
TTM EBITDA: $861.00M
TTM Op. Income: $861.00M
Q. Op. Income: $291.00M
TTM Net Income: $529.00M
Q. Net Income: $181.00M
EPS: $2.18
Shares Out.: $83.00M

$4.40B in TTM revenue grew 37.6% YoY, reaching $1.57B last quarter. TTM EBITDA of $861.00M and TTM operating income of $861.00M show growth is flowing through to the bottom line. TTM net income of $529.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 32.9%
EBITDA Margin: 18.6%
Op. Margin: 18.6%
Net Margin: 11.6%

Op. margin of 18.6% is down 12.9% YoY — costs are rising relative to revenue. Net margin at 11.6% and gross margin of 32.9% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 41% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 18.4x
P/S Ratio: 2.2x
P/B Ratio: 4.9x

At 18.4x P/E, the stock trades within typical market levels. P/S of 2.2x and P/B of 4.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $8.72B
Cash: $399.00M
Long-Term Debt: $4.09B
Book Value: $1.98B
D/E Ratio: 2.1
Debt/EBITDA: 14.1

With $8.72B in assets and $4.09B in long-term debt, D/E is 2.1and book value is $1.98B — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is up 51% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $312.00M
TTM Free Cash Flow: $737.00M
FCF Margin: 16.7%
FCF / Net Income: 1.4

TTM FCF of $737.00M on $312.00M in operating cash flow. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 13% — an improving trend.