Is Allison Transmission Stock a Good Investment?

Allison Transmission Investment Advice

  ALSN
To provide specific investment advice or recommendations on Allison Transmission Holdings stock, we recommend investors consider the following general factors when evaluating Allison Transmission Holdings. This will help you to make an informed decision on whether to include Allison Transmission in one of your diversified portfolios:
  • Examine Allison Transmission's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Allison Transmission's leadership team and their track record. Good management can help Allison Transmission navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Construction Machinery & Heavy Transportation Equipment space and any emerging trends that could impact Allison Transmission's business and its evolving consumer preferences.
  • Compare Allison Transmission's performance and market position to its competitors. Analyze how Allison Transmission is positioned in terms of product offerings, innovation, and market share.
  • Check if Allison Transmission pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Allison Transmission's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Allison Transmission Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Allison Transmission Holdings is a good investment.
 
Sell
 
Buy
Strong Buy
Macroaxis provides advice on Allison Transmission to complement and cross-verify current analyst consensus on Allison Transmission Holdings. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Allison Transmission is not overpriced, please confirm all Allison Transmission fundamentals, including its debt to equity, market capitalization, and the relationship between the ebitda and earnings per share . Given that Allison Transmission has a price to earning of 18.00 X, we suggest you to validate Allison Transmission Holdings market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Allison Transmission Stock

Researching Allison Transmission's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.65. Allison Transmission recorded earning per share (EPS) of 7.7. The entity last dividend was issued on the 19th of August 2024.
To determine if Allison Transmission is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Allison Transmission's research are outlined below:
Allison Transmission has a poor financial position based on the latest SEC disclosures
Over 99.0% of the company shares are held by institutions such as insurance companies
On 30th of August 2024 Allison Transmission paid $ 0.25 per share dividend to its current shareholders
Latest headline from investing.com: Allison Transmission SVP sells 191.6k in company stock

Allison Transmission Quarterly Good Will

2.08 Billion

Allison Transmission uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Allison Transmission Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Allison Transmission's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
13th of February 2024
Upcoming Quarterly Report
View
25th of April 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
13th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Allison Transmission's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Allison Transmission's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2013-02-19
2012-12-310.070.06-0.0114 
2015-04-27
2015-03-310.340.380.0411 
2015-02-09
2014-12-310.30.340.0413 
2014-04-16
2014-03-310.240.280.0416 
2013-04-29
2013-03-310.190.15-0.0421 
2015-07-27
2015-06-300.330.390.0618 
2012-10-29
2012-09-300.230.17-0.0626 
2012-07-30
2012-06-300.40.460.0615 

Know Allison Transmission's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Allison Transmission is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Allison Transmission Holdings backward and forwards among themselves. Allison Transmission's institutional investor refers to the entity that pools money to purchase Allison Transmission's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Pacer Advisors, Inc.2024-06-30
1.8 M
State Street Corp2024-06-30
1.7 M
Amvescap Plc.2024-06-30
1.6 M
Boston Partners Global Investors, Inc2024-06-30
1.6 M
Citadel Advisors Llc2024-06-30
1.2 M
Prudential Financial Inc2024-06-30
1.1 M
Norges Bank2024-06-30
M
Allianz Asset Management Ag2024-06-30
972.4 K
Wasatch Advisors Lp2024-06-30
927.5 K
Fmr Inc2024-06-30
10.3 M
Vanguard Group Inc2024-06-30
9.5 M
Note, although Allison Transmission's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Allison Transmission's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 8.46 B.

Market Cap

4.02 Billion

Allison Transmission's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.35  0.23 
Return On Capital Employed 0.20  0.11 
Return On Assets 0.13  0.07 
Return On Equity 0.55  0.36 
The company has Profit Margin (PM) of 0.22 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.27 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.27.
Determining Allison Transmission's profitability involves analyzing its financial statements and using various financial metrics to determine if Allison Transmission is a good buy. For example, gross profit margin measures Allison Transmission's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Allison Transmission's profitability and make more informed investment decisions.

Evaluate Allison Transmission's management efficiency

Allison Transmission has return on total asset (ROA) of 0.1202 % which means that it generated a profit of $0.1202 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.5386 %, meaning that it created $0.5386 on every $100 dollars invested by stockholders. Allison Transmission's management efficiency ratios could be used to measure how well Allison Transmission manages its routine affairs as well as how well it operates its assets and liabilities. As of the 4th of October 2024, Return On Tangible Assets is likely to drop to 0.23. In addition to that, Return On Capital Employed is likely to drop to 0.11. At this time, Allison Transmission's Other Assets are very stable compared to the past year. As of the 4th of October 2024, Intangible Assets is likely to grow to about 1.6 B, while Total Assets are likely to drop about 3.7 B.
Last ReportedProjected for Next Year
Book Value Per Share 13.70  14.39 
Tangible Book Value Per Share(20.79)(21.83)
Enterprise Value Over EBITDA 6.71  6.37 
Price Book Value Ratio 4.24  4.43 
Enterprise Value Multiple 6.71  6.37 
Price Fair Value 4.24  4.43 
Enterprise Value7.3 B6.1 B
The analysis of Allison Transmission's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Allison Transmission's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Allison Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0103
Forward Dividend Yield
0.0103
Forward Dividend Rate
1
Beta
0.989

Basic technical analysis of Allison Stock

As of the 4th of October, Allison Transmission shows the Risk Adjusted Performance of 0.2112, mean deviation of 1.18, and Downside Deviation of 1.57. Allison Transmission technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Allison Transmission's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Allison Transmission insiders, such as employees or executives, is commonly permitted as long as it does not rely on Allison Transmission's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Allison Transmission insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
 
Van Niekerk Teresa over three weeks ago
Acquisition by Van Niekerk Teresa of tradable shares of Allison Transmission subject to Rule 16b-3
 
Thomas Eifert over a month ago
Disposition of 2202 shares by Thomas Eifert of Allison Transmission at 23.59 subject to Rule 16b-3
 
Barbour D. Scott over a month ago
Acquisition by Barbour D. Scott of 1 shares of Allison Transmission subject to Rule 16b-3
 
Van Niekerk Teresa over three months ago
Disposition of 7700 shares by Van Niekerk Teresa of Allison Transmission at 75.6956 subject to Rule 16b-3
 
Judy Altmaier over six months ago
Acquisition by Judy Altmaier of tradable shares of Allison Transmission subject to Rule 16b-3
 
Dana Pittard over six months ago
Disposition of 2078 shares by Dana Pittard of Allison Transmission subject to Rule 16b-3
 
Van Niekerk Teresa over six months ago
Disposition of 3302 shares by Van Niekerk Teresa of Allison Transmission at .42 subject to Rule 16b-3
 
David Graziosi over six months ago
Disposition of 593 shares by David Graziosi of Allison Transmission subject to Rule 16b-3
 
Van Niekerk Teresa over six months ago
Acquisition by Van Niekerk Teresa of tradable shares of Allison Transmission subject to Rule 16b-3
 
Wanaselja James L over a year ago
Exercise or conversion by Wanaselja James L of 410 shares of Allison Transmission subject to Rule 16b-3
 
Van Niekerk Teresa over a year ago
Acquisition by Van Niekerk Teresa of tradable shares of Allison Transmission subject to Rule 16b-3
 
Van Niekerk Teresa over a year ago
Exercise or conversion by Van Niekerk Teresa of 5705 shares of Allison Transmission subject to Rule 16b-3

Allison Transmission's Outstanding Corporate Bonds

Allison Transmission issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Allison Transmission uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Allison bonds can be classified according to their maturity, which is the date when Allison Transmission Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Allison Transmission's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Allison Transmission's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Allison Transmission's intraday indicators

Allison Transmission intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Allison Transmission stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Allison Transmission Corporate Filings

F4
2nd of October 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
10Q
26th of July 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
8K
25th of July 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
29th of March 2024
Other Reports
ViewVerify
Allison Transmission time-series forecasting models is one of many Allison Transmission's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Allison Transmission's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Allison Stock media impact

Far too much social signal, news, headlines, and media speculation about Allison Transmission that are available to investors today. That information is available publicly through Allison media outlets and privately through word of mouth or via Allison internal channels. However, regardless of the origin, that massive amount of Allison data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Allison Transmission news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Allison Transmission relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Allison Transmission's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Allison Transmission alpha.

Allison Transmission Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Allison Transmission can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Allison Transmission Historical Investor Sentiment

Investor biases related to Allison Transmission's public news can be used to forecast risks associated with an investment in Allison. The trend in average sentiment can be used to explain how an investor holding Allison can time the market purely based on public headlines and social activities around Allison Transmission Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Allison Transmission's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Allison Transmission and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Allison Transmission news discussions. The higher the estimate score, the more favorable the investor's outlook on Allison Transmission.

Allison Transmission Corporate Directors

Carolann HaznedarIndependent DirectorProfile
Alvaro GarciaTunonIndependent DirectorProfile
Thomas RabautLead Independent DirectorProfile
David EverittIndependent DirectorProfile

Already Invested in Allison Transmission Holdings?

The danger of trading Allison Transmission Holdings is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Allison Transmission is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Allison Transmission. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Allison Transmission is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

Additional Information and Resources on Investing in Allison Stock

When determining whether Allison Transmission offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Allison Transmission's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Allison Transmission Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Allison Transmission Holdings Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Allison Transmission Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allison Transmission. If investors know Allison will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allison Transmission listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.17
Dividend Share
0.96
Earnings Share
7.7
Revenue Per Share
35.209
Quarterly Revenue Growth
0.204
The market value of Allison Transmission is measured differently than its book value, which is the value of Allison that is recorded on the company's balance sheet. Investors also form their own opinion of Allison Transmission's value that differs from its market value or its book value, called intrinsic value, which is Allison Transmission's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allison Transmission's market value can be influenced by many factors that don't directly affect Allison Transmission's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Allison Transmission's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Allison Transmission is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allison Transmission's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.