# ALLISON TRANSMISSION HOLDINGS, INC. (ALSN) — Stock CV

Allison Transmission Holdings, Inc. is a $9.07B consumer company. Revenue grew 37.6% over the last year, it keeps 12¢ of every dollar of sales as profit, and its net debt equals ~1.9 years of free cash flow. It trades at 17.1× earnings — in the most expensive third of its own history.

> Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions.

## Identity

- **Ticker**: ALSN
- **Sector**: Consumer Cyclical
- **Industry**: Motor Vehicle Parts & Accessories
- **Headquarters**: Indianapolis, IN
- **Employees**: 4 000
- **Website**: https://www.allisontransmission.com
- **Market cap**: $9.07B
- **Last price**: $109.86
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $4.40B
- **Net income**: $529M
- **Free cash flow**: $737M
- **Net debt**: $1.39B
- **P/E**: 17.1
- **Revenue growth (YoY)**: 37.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 65 |
| Growth | 74 |
| Profitability | 85 |
| Health | 55 |
| Quality | 85 |
| Moat | 95 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +37.6% YoY
- [x] Profitable — $529M TTM
- [x] Profit growing — +9.8% YoY
- [x] Generates cash — $737M TTM
- [x] Debt under control — ~1.9y of cash flow to repay
- [x] Established company — $9.07B market cap
- [x] Not printing shares — -25.5% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 43/100
- [x] Pays a dividend — yield 1.04%
- [x] Valuation not extreme — P/E 17.1

## Experience (career milestones)

- **FY2024** — Best year on record: $731M net income
- **2020** — Allison introduced a line of motor-integrated electric axles, branded eGen Power
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $1.84B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2003** — ;First generation GM-Allison introduced hybrid vehicle technology for transit buses in 2003
- **1973** — GVW highway vehicles; Allison model HT-740 *April 1973—First fully automatic transmission for large trucks, scrapers…
- **1969** — Army main battle tank is unveiled in Washington, D.C. *February 1969—Allison introduces electric gearshift control…
- **1955** — The VS-2 was introduced in 1955, which added a two-speed input splitter
- **1950** — The Allison 850-series torque converter was a crucial component in the post-war development of self-propelled…
- **1948** — Allison designed, developed and manufactured the first-ever automatic transmissions for heavy-duty vehicles…
- **1948** — In addition, Allison marketed transmissions for off-highway heavy-duty vehicles under the brand Powershift TORQMATIC
- **1934** — The result was the V1710 12-cylinder aircraft engine and it made the company, renamed to the Allison Division of GM…
- **1911** — Allison's new track held the first Indianapolis 500 mile race

## Strengths

- Revenue growing 37.6% year over year
- Strong cash conversion — FCF is 16.7% of revenue
- Interest covered 10.7× by operating earnings
- High returns on invested capital (ROIC 19.1%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.40B | $442M | $460M |
| FY2022 | $2.77B | $531M | $490M |
| FY2023 | $3.04B | $673M | $659M |
| FY2024 | $3.23B | $731M | $658M |
| FY2025 | $3.01B | $623M | $661M |

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Source: https://stockcv.com/ALSN — derived from company filings; may be delayed or incomplete. Information, not investment advice.