Added to YB: 2026-04-28
Pitch date: 2026-04-24
ALSN [neutral]
Allison Transmission Holdings, Inc.
-1.5%
current return
Author Info
No bio for this author
Company Info
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.
Market Cap
$11.3B
Pitch Price
$135.72
Price Target
260.00 (+92%)
Dividend
0.80%
EV/EBITDA
12.11
P/E
18.49
EV/Sales
4.20
Sector
Machinery
Category
value
A Quiet Market Leader & Buyback King at 15x PE: Meet Allison
ALSN (overview): Dominant 60% share in auto transmissions for commercial vehicles, just acquired Dana's off-highway biz for $2.7B. 13yr revenue CAGR only +3%, but mgmt cut shares 51.6% via buybacks. Dana deal drops EBITDA margin from 37% to 27-29% near-term, targeting $120M synergies (not in 2026 guide). Stock at ATH, 15x P/E up from 8x; needs 10% 5yr CAGR for 15% IRR. Risks: EV transition lag vs peers, OEM concentration, integration execution. R/R 3/10 at $133; becomes 8-9/10 at $80-87 (-35-40%).
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