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Allison Transmission Holdings Inc (ALSN)ALSN
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Upturn Advisory Summary
11/06/2024: ALSN (4-star) is a STRONG-BUY. BUY since 82 days. Profits (46.87%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 89.6% | Upturn Advisory Performance 3 | Avg. Invested days: 44 |
Profits based on simulation | Stock Returns Performance 4 | Last Close 11/06/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 89.6% | Avg. Invested days: 44 |
Upturn Star Rating | Stock Returns Performance 4 |
Profits based on simulation Last Close 11/06/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.50B USD |
Price to earnings Ratio 13.04 | 1Y Target Price 102.75 |
Dividends yield (FY) 0.94% | Basic EPS (TTM) 8.41 |
Volume (30-day avg) 625201 | Beta 0.99 |
52 Weeks Range 51.23 - 117.87 | Updated Date 11/6/2024 |
Company Size Mid-Cap Stock | Market Capitalization 9.50B USD | Price to earnings Ratio 13.04 | 1Y Target Price 102.75 |
Dividends yield (FY) 0.94% | Basic EPS (TTM) 8.41 | Volume (30-day avg) 625201 | Beta 0.99 |
52 Weeks Range 51.23 - 117.87 | Updated Date 11/6/2024 |
Earnings Date
Report Date 2024-10-29 | When AfterMarket |
Estimate 2.02 | Actual 2.27 |
Report Date 2024-10-29 | When AfterMarket | Estimate 2.02 | Actual 2.27 |
Profitability
Profit Margin 22.66% | Operating Margin (TTM) 27.33% |
Management Effectiveness
Return on Assets (TTM) 12.07% | Return on Equity (TTM) 51.77% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 13.04 | Forward PE 12.21 |
Enterprise Value 11115326533 | Price to Sales(TTM) 2.96 |
Enterprise Value to Revenue 3.47 | Enterprise Value to EBITDA 9.97 |
Shares Outstanding 86622800 | Shares Floating 100986637 |
Percent Insiders 0.53 | Percent Institutions 101.08 |
Trailing PE 13.04 | Forward PE 12.21 | Enterprise Value 11115326533 | Price to Sales(TTM) 2.96 |
Enterprise Value to Revenue 3.47 | Enterprise Value to EBITDA 9.97 | Shares Outstanding 86622800 | Shares Floating 100986637 |
Percent Insiders 0.53 | Percent Institutions 101.08 |
Analyst Ratings
Rating 3.2 | Target Price 59.33 | Buy 1 |
Strong Buy 2 | Hold 4 | Sell 3 |
Strong Sell - |
Rating 3.2 | Target Price 59.33 | Buy 1 | Strong Buy 2 |
Hold 4 | Sell 3 | Strong Sell - |
AI Summarization
Allison Transmission Holdings Inc. - Comprehensive Overview
Company Profile:
History and Background: Founded in 1915, Allison Transmission Holdings Inc. (NYSE: ALSN) is a leading designer and manufacturer of commercial and military automatic transmissions and hybrid propulsion systems. Initially a part of General Motors, Allison became an independent public company in 2012.
Core Business Areas:
- Commercial Vehicle Transmissions: Serving various applications like on-highway trucks, buses, refuse vehicles, and construction equipment.
- Military Tactical and Defense: Delivering transmissions for combat vehicles, armored personnel carriers, and other defense platforms.
- Hybrid Propulsion Systems: Offering hybrid electric and fully electric propulsion solutions for buses and commercial vehicles.
Leadership Team and Corporate Structure:
- David S.Graziosi: Chairman and Chief Executive Officer
- Rory D. Gonsalves: President and Chief Operating Officer
- Richard T. Moore: Chief Financial Officer
- Board of Directors comprises a diverse team with expertise in finance, technology, and the automotive industry.
Top Products and Market Share:
- Commercial Transmissions: Allison holds a dominant market share in North America and a significant presence globally with its 3000, 4000, and torqmatic series transmissions.
- Military Transmissions: Renowned for their reliability and performance, Allison transmissions are widely used in various military vehicles across the globe.
- xFE Hybrid System: Provides improved fuel efficiency and reduced emissions for medium-duty and heavy-duty commercial vehicles.
Total Addressable Market:
The global powertrain market for commercial vehicles and the global market for defense vehicles represent the total addressable market for Allison. This market is expected to reach USD 554.3 billion by 2026.
Financial Performance:
- Revenue: Steadily growing revenue in recent years, exceeding USD 2.33 billion in 2022.
- Profitability: Healthy margins with operating margin at 13.3% and net income exceeding USD 234.4 million in 2022.
- Earnings per Share (EPS): Growing EPS with 2022 EPS reaching USD 4.94.
Cash Flow and Balance Sheet:
- Strong cash flow generation with operating cash flow exceeding USD 284.5 million in 2022.
- Solid balance sheet with low debt levels and a current ratio of 2.1.
Dividends and Shareholder Returns:
- Dividend history: Consistent dividend payments with a current dividend yield of approximately 1.73% and a payout ratio around 30%.
- Shareholder Returns: Total shareholder return of 22.47% in 2022 and 107.87% over the past five years.
Growth Trajectory:
- Historical Growth: Steady revenue and profits growth in recent years.
- Future Projections: Positive outlook with growth potential fueled by increasing demand for fuel-efficient and hybrid solutions for commercial vehicles and further penetration in global markets.
- Product launches: Introduction of new electric axles and enhanced transmissions supports growth prospects.
Market Dynamics:
- Industry Trends: Increasing demand for fuel efficiency, electrification, and emission reduction solutions. Growing e-commerce market is also driving demand for delivery vehicles.
- Positioning: Allison is well-positioned to capitalize on these trends with its strong product portfolio and focus on innovation.
Competitors:
- Eaton Corporation (ETN)
- ZF Friedrichshafen AG
- Dana Incorporated (DAN)
- Hendrickson International (HND)
- Meritor, Inc. (MTOR)
Market share comparison: Allison holds a leading position in commercial transmissions (North America) and defense applications. Its market share is lower in other segments compared to larger rivals.
Competitive advantages: Strong brand reputation, focus on technology development, and extensive distribution network are key advantages.
Potential Challenges and Opportunities:
Challenges:
- Competition: Intense competition from established players and new entrants in the electric vehicle space.
- Supply chain disruption: Potential challenges securing key components due to global supply chain issues.
- Macroeconomic uncertainty: Global economic downturns could affect demand for commercial vehicles.
Opportunities:
- Growth in emerging markets: Potential to expand market share in fast-growing economies.
- Technological advancements: Development and adoption of advanced transmission technologies like electric axles could strengthen the competitive position.
- Strategic partnerships: Collaboration with key players in the electric vehicle ecosystem could open new growth avenues.
Recent Acquisitions:
- 2020: Acquired AxleTech International, Inc., a leading supplier of axles, drivetrain, and suspension systems, enhancing its presence in the electric vehicle market.
- 2019: Strategic investment in EMB-Papst Neunkirchen GmbH, a German electric motor manufacturer, further solidifying its electric propulsion capabilities.
- 2023: Acquired XALT Energy, LLC, an electric bus and commercial vehicle battery subsidiary of Goldman Sachs, to secure battery supply and enhance its hybrid propulsion systems offering.
AI-Based Fundamental Rating:
Based on an AI-powered analysis considering the factors discussed above, Allison Transmission Holdings Inc. receives a 7.8 out of 10 rating. This indicates strong fundamentals but acknowledges potential challenges, which are outweighed by its solid growth prospects and market positioning.
Sources and Disclaimers:
- Information sources: Company website, Annual reports, Financial statements, Investor presentations, Industry reports, Market research data.
- Disclaimer: This information is for informational purposes only and should not be consideredinvestment advice. Please consult with a financial professional before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Allison Transmission Holdings Inc
Exchange | NYSE | Headquaters | Indianapolis, IN, United States |
IPO Launch date | 2012-03-15 | Chairman, President & CEO | Mr. David S. Graziosi |
Sector | Consumer Cyclical | Website | https://www.allisontransmission.com |
Industry | Auto Parts | Full time employees | 3700 |
Headquaters | Indianapolis, IN, United States | ||
Chairman, President & CEO | Mr. David S. Graziosi | ||
Website | https://www.allisontransmission.com | ||
Website | https://www.allisontransmission.com | ||
Full time employees | 3700 |
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 provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems. The company 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. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also 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. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.
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