Bedrijfsoverzicht
Allison Transmission Holdings, Inc. is a global manufacturer dedicated to the design, production, and sale of fully automatic transmissions for medium- and heavy-duty commercial vehicles, as well as medium- and heavy-tactical U.S. defense vehicles and electrified propulsion systems. The company operates within the Consumer Cyclical sector, specifically the Auto Parts industry, positioning it as a key supplier in the automotive value chain where demand fluctuates with broader economic cycles. Its market capitalization stands at $10.68B, supported by a reported annual revenue of $3.01B and an operational workforce of 4000 employees. These valuation and revenue figures indicate that the firm holds a substantial market position, commanding a significant capitalization relative to its sales output, which suggests a mature business model with established revenue streams in the transportation and defense sectors.
Financiële gezondheid
The company reported a revenue of $3.01B over the trailing twelve months, with a net income of $623.00M and an EBITDA of $1.04B. The substantial gap between the $3.01B revenue and the $623.00M net income reveals a cost structure that allows the firm to retain over 20% of top-line sales as profit, yet leaves significant earnings before interest and taxes to cover operational overhead, interest expenses, and taxes. Free cash flow stands at $466.75M, which provides the company with considerable financial flexibility to fund capital expenditures, service debt obligations, or pursue strategic acquisitions without immediate reliance on external financing. Gross margin is reported at 48.6%, indicating a high degree of pricing power or efficiency in the manufacturing of transmission components, while the operating margin sits at 21.8% and the profit margin at 20.7%, reflecting strong operational efficiency and effective tax management. The balance sheet shows $1.50B in cash against $2.91B in debt, resulting in a debt-to-equity ratio of 155.76, which characterizes a leveraged balance sheet where interest coverage must be closely monitored against cash flow generation. Despite the debt load, the current ratio is 4.85, indicating robust short-term liquidity that suggests the company is well-positioned to meet its obligations due within one year. Return on Equity is 35.4% and Return on Assets is 10.0%, metrics that reveal highly effective management in generating returns on shareholder capital relative to the asset base employed.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is 17.53, while the forward P/E is 11.24, implying that the market expects earnings to grow significantly in the coming years to justify the lower multiple on future earnings. The price-to-book ratio stands at 5.70, indicating that the market values the company at a significant premium over its net book value, likely reflecting the intangible value of its intellectual property and brand in the auto parts sector. Alternative valuation metrics such as the price-to-sales ratio of 3.55 and an EV/EBITDA of 11.61 suggest that investors are pricing the stock based on revenue generation and cash conversion capabilities rather than just current earnings. The 52-week high is $128.85 and the 52-week low is $76.01, providing a historical range within which the stock has traded. To determine the current price position relative to this range, one must note that the forward P/E implies an expectation of earnings expansion that could drive the price toward the upper end of the range, though the current price sits below the 52-week high of $128.85. The beta is 0.96, meaning the stock's price volatility is nearly identical to the broader market, suggesting it does not act as a significant hedge or amplifier of market swings during periods of volatility.
Growth & Income
Revenue growth year-over-year is -7.4%, while earnings growth year-over-year is -41.1%, indicating that earnings are contracting at a much faster rate than revenue, which implies rising cost pressures or margin compression that has disproportionately impacted profitability compared to sales volume. The company pays a dividend with a yield of 0.9% and maintains a payout ratio of 14.7%, a low payout ratio that suggests the company retains the majority of its earnings for reinvestment rather than distributing them to shareholders. Given the earnings decline, the sustainability of the dividend depends on future operational improvements, but the low payout ratio provides a buffer against temporary earnings volatility. The overall growth and income profile reflects a mature cyclical business currently facing headwinds in revenue and earnings, yet supported by a consistent dividend and a capital structure that allows for financial flexibility.