# Allison Transmission Holdings Inc. (ALSN) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Auto Components. Price $131.24, market value $10.8 billion.

## Valuation
- **P/E (trailing): 20.7×** (5-yr avg 9.8×, 3-yr avg 11.2×). Allison Transmission Holdings Inc. trades at 20.7× trailing earnings, well above its own five-year average of 9.8×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 11.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 5.5×**. The shares trade at 5.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 6.8%** (5-yr avg 10.7%). Free cash flow equals 6.8% of the market value, below its five-year average of 10.7%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Gross margin: 36.4%**. Allison Transmission Holdings Inc. keeps 36.4% of revenue after the direct cost of what it sells.
- **Operating margin: 19.6%**. 19.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 20.7%**. 20.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 33.4%**. 33.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 20.9%**. Return on all capital, debt included, is 20.9%: comfortably above what that capital costs.
- **Return on assets: 8.7%**. Each dollar of assets produces 8.7% of profit.

## Growth
- **Revenue growth (1 yr): -6.7%** (3-yr 2.8%/yr, 5-yr 7.7%/yr). Revenue fell 6.7% over the last year, against 7.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -11.8%** (3-yr 9.8%/yr, 5-yr 22.8%/yr). Earnings per share fell 11.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 10.5%/yr**. Free cash flow has compounded at 10.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.55**. Debt is 1.55 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Altman Z-score: 2.94**. A Z-score of 2.94 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.88%** ($1.12 per share, trailing). Allison Transmission Holdings Inc. yields 0.88%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 15%** (13% of free cash flow). 15% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 9.7%/yr** (1-yr 8.0%). The dividend has grown 9.7% a year over five years.

## Analyst view
- **Analyst consensus: buy** (10 analysts). 10 analysts cover Allison Transmission Holdings Inc.; the consensus is buy, with an average price target of $139.40 (+6% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 48.3%** (YTD 34.7%, 3-mo 13.4%). The shares are up 48.3% over twelve months including dividends.
- **From 52-week high: -4.6%** (72.7% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 1.05** (volatility 31%). Beta of 1.05 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ALSN · Page: https://foliofundamentals.com/stocks/alsn

Not investment advice.