ALSN Share Price | Allison Transmission Holdings, Inc. Stock Analysis & Recommendation

Q: Is Allison Transmission Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Allison Transmission Holdings, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.80, and an EV to EBITDA of 9.22. In comparison to peers, Allison's P/E ratio is significantly lower than Autoliv, Inc. at 18.06 and Donaldson Co., Inc. at 28.15, suggesting that it is priced more attractively relative to its earnings potential.Allison's recent stock performance shows a 1-week return of 1.77%, slightly outperforming the S&P 500's 1.70%, but it has struggled over longer periods, with a year-to-date return of -25.15% compared to the S&P 500's 13.30%. Overall, the combination of strong valuation ratios and a favorable peer comparison supports the conclusion that Allison Transmission Holdings, Inc. is currently undervalued.

Q: Is Allison Transmission Holdings, Inc. technically bullish or bearish?

As of 12 September 2025, the technical trend for Allison Transmission Holdings, Inc. has changed from mildly bearish to bearish. The current stance is bearish with mild strength indicated by the weekly MACD and KST both showing bearish signals. The daily moving averages are also mildly bearish, while the Bollinger Bands confirm a bearish outlook on both weekly and monthly time frames. The stock has underperformed the S&P 500 year-to-date, with a return of -17.61% compared to the S&P 500's 12.22%. Overall, the technical indicators suggest a bearish sentiment for the stock.

Q: What does Allison Transmission Holdings, Inc. do?

Overview: Allison Transmission Holdings, Inc. designs and manufactures commercial and defense fully-automatic transmissions, operating within the Auto Components & Equipments industry and categorized as a mid-cap company.Financial Snapshot: Net Sales: 766 Million (Quarterly Results - Mar 2025) Net Profit: 192 Million (Quarterly Results - Mar 2025) Market cap: USD 7,870.24 Million (Mid Cap)Key Metrics: P/E: 12.00 Dividend Yield: 118.31% Debt Equity: 0.99 Return on Equity: 45.00% Price to Book: 4.73Contact Details: Address: 1 Allison Way, INDIANAPOLIS IN: 46222-3271 Tel: 1 317 2425000 Website: http://www.allisontransmission.com/

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

919.67 k

Shareholding (Mar 2026)

FII

17.73%

Held by 207 FIIs

DII

82.21%

Held by 64 DIIs

Promoter

0.06%

Is Allison Transmission Holdings, Inc. overvalued or undervalued?

21-Oct-2025

As of October 17, 2025, Allison Transmission Holdings, Inc. is considered undervalued with a favorable P/E ratio of 12 and a PEG ratio of 0.80, despite a year-to-date return of -25.15%, indicating a shift from expensive to attractive compared to peers like Autoliv and Donaldson.

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Is Allison Transmission Holdings, Inc. technically bullish or bearish?

20-Sep-2025

As of September 12, 2025, Allison Transmission Holdings, Inc. shows a bearish trend with indicators like the MACD and KST signaling weakness, and a year-to-date return of -17.61% compared to the S&P 500's 12.22%.

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How big is Allison Transmission Holdings, Inc.?

22-Jun-2025

As of Jun 18, Allison Transmission Holdings, Inc. has a market capitalization of $7.87 billion, with net sales of $3.20 billion and a net profit of $754 million over the latest four quarters. The balance sheet shows shareholder's funds of $1.65 billion and total assets of $5.34 billion.

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What does Allison Transmission Holdings, Inc. do?

22-Jun-2025

Allison Transmission Holdings, Inc. designs and manufactures fully-automatic transmissions for commercial and defense applications, with a market cap of approximately $7.87 billion. As of March 2025, it reported net sales of $766 million and a net profit of $192 million.

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Who are in the management team of Allison Transmission Holdings, Inc.?

22-Jun-2025

As of March 2022, the management team of Allison Transmission Holdings, Inc. includes Lawrence Dewey (Chairman), David Graziosi (CEO), Thomas Rabaut (Lead Independent Director), and several independent directors: Judy Altmaier, Stanley Askren, David Everitt, and Alvaro Garcia-Tunon. They oversee the company's operations and strategic direction.

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Compare Allison Transmission Holdings, Inc. with Similar Stocks

Brunswick Corp.Donaldson Co., Inc.Gentex Corp.

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

Poor long term growth as Net Sales has grown by an annual rate of 6.83% and Operating profit at 8.53% over the last 5 years

Underperformed the market in the last 1 year

Mojo Parameters

Stock DNA

Industry

Auto Components & Equipments

Market cap

USD 9,478 Million (Small Cap)

P/E

14.00

Industry P/E

Dividend Yield

103.91%

Debt Equity

0.75

Return on Equity

35.02%

Price to Book

5.08

Revenue and Profits:

Net Sales:

1,406 Million

(Quarterly Results - Mar 2026)

Net Profit:

112 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

5.15%

6 Months

19.95%

1 Year

29.15%

2 Years

58.23%

3 Years

120.11%

4 Years

216.42%

5 Years

208.15%

Allison Transmission Holdings, Inc. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

7.66%

EBIT Growth (5y)

11.85%

EBIT to Interest (avg)

7.02

Debt to EBITDA (avg)

2.34

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

0.77

Tax Ratio

18.57%

Dividend Payout Ratio

14.74%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

24.88%

ROE (avg)

51.89%

Valuation key factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.08

EV to EBIT

11.63

EV to EBITDA

10.27

EV to Capital Employed

3.33

EV to Sales

3.61

PEG Ratio

Dividend Yield

103.91%

ROCE (Latest)

28.62%

ROE (Latest)

35.02%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot : Mar 2026

Shareholding Compare (%holding)

Majority shareholders

Domestic Funds

Held in 109 Schemes (54.44%)

Foreign Institutions

Held by 207 Foreign Institutions (17.73%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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          "field": "Consolidate Net Profit",
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        "Dec'25",
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          "val1": "98.00",
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          "chgp": "-2.97%",
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          "val2": "3.00",
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Quarterly Results Snapshot (Consolidated) - Mar'26 - QoQ

Mar'26

Dec'25

Change(%)

Net Sales

1,406.00

737.00

90.77%

Operating Profit (PBDIT) excl Other Income

292.00

258.00

13.18%

Interest

61.00

25.00

144.00%

Exceptional Items

-20.00

-54.00

62.96%

Consolidate Net Profit

112.00

99.00

13.13%

Operating Profit Margin (Excl OI)

150.80%

306.60%

-15.58%

USD in Million.

Compare with Peers

Net Sales

QoQ Growth in quarter ended Mar 2026 is 90.77% vs 6.35% in Dec 2025

Consolidated Net Profit

QoQ Growth in quarter ended Mar 2026 is 13.13% vs -27.74% in Dec 2025

All Quarterly Results

Annual Results Snapshot (Consolidated) - Dec'25

Dec'25

Dec'24

Change(%)

Net Sales

3,010.00

3,225.00

-6.67%

Operating Profit (PBDIT) excl Other Income

1,097.00

1,113.00

-1.44%

Interest

98.00

101.00

-2.97%

Exceptional Items

-81.00

3.00

-2,800.00%

Consolidate Net Profit

623.00

731.00

-14.77%

Operating Profit Margin (Excl OI)

323.30%

307.60%

1.57%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in year ended Dec 2025 is -6.67% vs 6.26% in Dec 2024

Consolidated Net Profit

YoY Growth in year ended Dec 2025 is -14.77% vs 8.62% in Dec 2024

All Annual Results

Company CV

About Allison Transmission Holdings, Inc.

Allison Transmission Holdings, Inc.

Auto Components & Equipments

Allison Transmission Holdings, Inc. and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company's transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked). The Company's transmissions are sold under the Allison Transmission brand name and remanufactured transmissions are sold under the ReTran brand name. The Company has developed over 100 different models that were used in more than 2,500 different vehicle configurations and were compatible with over 500 combinations of engines, as of December 31, 2016.

Company Coordinates

Company Details

1 Allison Way , INDIANAPOLIS IN : 46222-3271

Tel: 1 317 2425000

http://www.allisontransmission.com/

Registrar Details