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ALSN

ALSN

Consumer Cyclical · Auto Parts

$121.36+1.58%
Mkt Cap: $10.07BDY: 0.97%

Performance

ALSN (ALSN) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

ALSN (ALSN) operates in the Auto Parts space within the Consumer Cyclical sector. With a market cap of $10.1B, it qualifies as a mid-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.

Bull Case4
  • Forward P/E (10.7×) is lower than trailing P/E (18.9×) — analysts expect earnings to improve
  • Revenue grew 84% year-over-year — exceptional top-line expansion
  • Healthy profit margin of 14.9%
  • ROE of 30.4% shows management efficiently converts equity into profit
Bear Case2
  • Earnings fell 40% YoY — profitability is under pressure
  • High debt-to-equity of 228.64× increases financial risk, especially with elevated interest rates

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

Current DY

0.97%

5Y Avg Annual

$0.8840

Last Payment

$0.2900

Ex-Date

05/18/2026

Annual dividends paid per share

2012
2019
2026
Ex-DatePaymentAmountEst. DY
Latest05/18/2026
05/29/2026$0.29000.96%
03/09/2026
03/20/2026$0.29000.96%
11/21/2025
12/02/2025$0.27000.89%
08/20/2025
08/31/2025$0.27000.89%
05/19/2025
05/30/2025$0.27000.89%
03/03/2025
03/14/2025$0.27000.89%
11/18/2024
11/29/2024$0.25000.82%
08/19/2024
08/30/2024$0.25000.82%

Magic Number

Shares needed to self-fund your next purchase

$121.36

Price

÷

$0.2900

Last div. (quarterly)

=

419

shares

Own 419 ALSN shares ($50,849.84) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$50,849.84

New shares / year

+4 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Aug 4, 2026

49

days

EPS (TTM)

$6.43

P/E (TTM)

18.9

Fwd P/E

10.7

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$10.07B
P/E Ratio18.87
Forward P/E10.70
P/B Ratio
PEG Ratio0.69
EPS (TTM)$6.43

Trading

Open
Day High
Day Low
52W High$137.62
52W Low$76.01
Volume
Avg Volume (3M)872,344
Beta0.94

Dividends

Dividend Yield0.97%
Annual Rate$1.16
Ex-Div Date2026-05-18
Payout Ratio17.11%

Profitability

Profit Margin14.88%
Operating Margin19.49%
ROE30.44%
ROA8.25%
Revenue Growth83.60%
Earnings Growth-40.40%

Balance Sheet

Total Revenue$3.65B
Total Debt$4.35B
Debt / Equity228.64
Current Ratio1.85
Free Cash Flow$39.13M

Fair Value Estimates

Current price: $121.36

Graham Number

√(22.5 × EPS × Book Value)

$57.58

-52.6% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$15.33

-87.4% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

8/10

80% score

Pays dividends

14Y hist.

14+ years of dividend history

Dividend consistency (5Y+)

14 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

30.4%

Return on equity — measures how efficiently capital is used

Positive profit margin

14.9%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+83.6%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

-40.4%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

228.64×

Low financial leverage reduces risk of distress

Current ratio above 1

1.85×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$106M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

0.97%

Stock must distribute income to shareholders

Related Assets

Consumer Cyclical

About ALSN

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.

Sector

Consumer Cyclical

Industry

Auto Parts

Location

Indianapolis, United States

Employees

4,000