ALSN
Consumer CyclicalAllison Transmission Holdings, Inc. · Auto - Parts · $9B
What is Allison Transmission Holdings, Inc.?
Allison Transmission Holdings is the world's largest manufacturer of fully-automatic transmissions for commercial and defense vehicles. Headquartered in Indianapolis, Indiana, the company serves customers across more than 80 countries through a broad independent dealer network.
Allison designs, manufactures, and sells fully-automatic transmissions for medium- and heavy-duty commercial trucks, buses, motor homes, off-highway equipment, and U.S. military vehicles. Revenue comes from new transmission sales to original equipment manufacturers, aftermarket parts and services, remanufactured units sold under the ReTran brand, and defense-related engineering services and kits. The company reaches end customers through roughly 1,400 independent distributor and dealer locations worldwide.
Allison Transmission traces its operational roots to 1915 and is headquartered in Indianapolis, Indiana.
- Fully-automatic transmissions for commercial trucks and buses
- ReTran remanufactured transmission units
- Defense vehicle transmissions and defense kits
- Branded aftermarket replacement parts and support equipment
- Extended transmission coverage and engineering services
Is ALSN a Good Stock to Buy?
UQS Score rates ALSN as Good overall, reflecting a balanced profile with a standout Quality pillar.
Allison's Quality pillar ranks as Strong, pointing to durable profitability and cash generation that stand out relative to sector peers. The Valuation pillar is rated Attractive, suggesting the market may not be fully pricing in the company's earnings power compared to its fundamentals.
The Moat and Growth pillars both register as Neutral, indicating that competitive differentiation and near-term expansion prospects are neither a clear tailwind nor a meaningful drag at this stage.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does ALSN pay dividends?
Yes — Allison Transmission Holdings, Inc. pays a dividend.
Allison Transmission pays a regular dividend, reflecting the company's consistent cash generation from its large installed base of vehicles and aftermarket parts business. This cadence is typical of mature industrial manufacturers that prioritize returning capital to shareholders alongside share repurchases. Income-oriented investors often view ALSN's dividend as a sign of financial discipline.
When does ALSN report earnings?
Allison Transmission reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's results have generally reflected steady demand from commercial vehicle OEMs and a resilient aftermarket parts business. Defense-related revenue adds a layer of diversification that can offset softness in commercial end markets.
For the most recent quarter's results and guidance, visit Allison Transmission's investor relations page directly.
ALSN Price History
+234.6% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Allison Transmission Holdings, Inc.?
Based on Allison Transmission Holdings, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
ALSN Long-term Outlook
With Growth and Risk pillars both rated Neutral, Allison's fundamental outlook appears stable rather than rapidly expanding. The company's exposure to commercial vehicle replacement cycles and U.S. defense procurement provides a degree of demand visibility. An Attractive Valuation rating suggests the current price may offer a reasonable entry point relative to the company's underlying earnings profile, though cyclical end-market swings remain a factor to monitor.
Growth drivers
- Aftermarket parts and services tied to a large global installed base
- U.S. defense vehicle modernization programs
- Gradual adoption of electrified and hybrid propulsion systems in commercial fleets
Key risks
- Cyclical downturns in commercial truck and construction equipment demand
- Competitive pressure from emerging electric drivetrain alternatives
- Concentration in North American OEM customer relationships
ALSN vs Peers
Allison Transmission operates in a competitive landscape alongside diversified automotive and mobility technology suppliers.
BorgWarner competes across a broader range of powertrain components and is aggressively pivoting toward electric vehicle propulsion systems.
Aptiv focuses on vehicle electrical architecture and software-defined vehicle technologies rather than mechanical drivetrain hardware.
Autoliv specializes in automotive safety systems such as airbags and seatbelts, serving a different segment of the commercial and passenger vehicle supply chain.
Frequently Asked Questions
What does Allison Transmission do?
Allison Transmission designs and manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, buses, off-highway equipment, and U.S. military vehicles. The company also sells remanufactured transmissions under the ReTran brand and generates recurring revenue through aftermarket parts and extended service coverage.
Does ALSN pay dividends?
Yes, Allison Transmission pays a regular dividend. The company's consistent cash generation from its large installed base and aftermarket business supports this ongoing return of capital to shareholders. Check the company's investor relations page for the current dividend rate and payment schedule.
When does ALSN report earnings?
Allison Transmission reports financial results on a quarterly cadence, as is standard for US-listed companies. For the exact dates of upcoming earnings releases, refer to the investor relations section of the company's official website.
Is ALSN a good stock to buy?
UQS Score rates ALSN as Good overall. The Quality pillar is Strong and the Valuation pillar is Attractive, while Growth and Moat are Neutral. Whether that profile fits your portfolio depends on your own investment criteria. The full pillar breakdown is available to UQS Pro members.
Is ALSN overvalued?
The UQS Valuation pillar for ALSN is rated Attractive, which suggests the stock may be reasonably priced relative to its fundamental earnings profile. Valuation is one of five pillars in the composite score — view the complete analysis on UQS Pro for deeper context.
How does ALSN compare to its competitors?
Allison's closest peers in the automotive supplier space include BorgWarner, Aptiv, and Autoliv. Unlike those companies, Allison is narrowly focused on fully-automatic transmissions for commercial and defense vehicles, giving it a specialized market position rather than broad diversification across vehicle systems.
What is ALSN's market cap bracket?
Allison Transmission is classified as a large-cap company. This places it among the more established and liquid names in the commercial vehicle components sector, typically associated with greater financial stability than smaller peers.
Who founded Allison Transmission?
Allison Transmission's origins date to 1915, when James Allison — co-founder of the Indianapolis Motor Speedway — established the business. The company has evolved significantly over more than a century and is now publicly traded as Allison Transmission Holdings.
Is ALSN a long-term quality investment?
From a quality standpoint, ALSN's Strong Quality pillar indicates durable profitability characteristics. Long-term suitability depends on how the company navigates commercial vehicle cycles and the gradual shift toward electrified drivetrains. UQS Pro members can view the full five-pillar breakdown to assess long-term quality indicators.
What is the main competitive advantage of Allison Transmission?
Allison holds a dominant share of the North American fully-automatic transmission market for commercial vehicles, backed by decades of engineering expertise and a large installed base that drives recurring aftermarket revenue. Its defense contracts add further demand diversification beyond commercial cycles.
What sector does ALSN belong to?
ALSN is classified under the Consumer Cyclical sector, reflecting its exposure to commercial vehicle production cycles. Investors should be aware that demand for heavy-duty transmissions can fluctuate with broader economic conditions and freight activity.
Is ALSN a growth stock or value stock?
Based on UQS pillar labels, ALSN leans toward value characteristics — the Valuation pillar is Attractive while the Growth pillar is Neutral. This profile is more consistent with a cash-generative, mature industrial business than a high-growth technology-oriented name.
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Pro Analysis
ALSN — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 55.8 | 73.6 | 42.0 | 54.2 | 19.9 | 87.2 | -0.1 |
| May 22, 2026 | 55.9 | 73.7 | 42.0 | 54.2 | 19.9 | 87.6 | -0.1 |
| May 20, 2026 | 56.0 | 73.9 | 42.0 | 54.2 | 19.9 | 88.0 | +0.7 |
| May 19, 2026 | 55.3 | 72.7 | 42.0 | 54.2 | 19.9 | 85.1 | +0.2 |
| May 16, 2026 | 55.1 | 72.7 | 42.0 | 54.2 | 19.9 | 84.2 | +0.4 |
| May 14, 2026 | 54.7 | 72.1 | 42.0 | 54.2 | 19.9 | 82.2 | -0.1 |
| May 13, 2026 | 54.8 | 71.9 | 42.0 | 54.2 | 19.9 | 83.1 | +0.2 |
| May 12, 2026 | 54.6 | 71.9 | 42.0 | 54.2 | 19.9 | 82.0 | 0.0 |
| May 11, 2026 | 54.6 | 71.9 | 42.0 | 54.2 | 19.9 | 81.8 | -8.6 |
| May 7, 2026 | 63.2 | 82.2 | 42.0 | 54.2 | 56.2 | 85.5 | +0.2 |
ALSN — Pillar Breakdown
Quality
— 73.6/100 (25%)Allison Transmission Holdings, Inc. shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 54.2/100 (20%)Allison Transmission Holdings, Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 19.9/100 (15%)Allison Transmission Holdings, Inc. presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 87.6/100 (15%)Allison Transmission Holdings, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 42/100 (25%)Allison Transmission Holdings, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ALSN.
Score Composition
Financial Data
More Stock Analysis
How is the ALSN UQS Score Calculated?
The UQS (Unified Quality Score) for Allison Transmission Holdings, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Allison Transmission Holdings, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Allison Transmission Holdings, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.