Is Allison Transmission Stock a Good Investment?
Allison Transmission Investment Advice | ALSN |
- 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
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
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 1.67. Allison Transmission recorded earning per share (EPS) of 8.19. The entity last dividend was issued on the 18th of November 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 | |
| Latest headline from news.google.com: Jennison Associates LLC Makes New 52.16 Million Investment in Allison Transmission Holdings, Inc. - MarketBeat |
Allison Transmission Quarterly Good Will |
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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 | 2012-12-31 | 0.07 | 0.06 | -0.01 | 14 | ||
2015-04-27 | 2015-03-31 | 0.34 | 0.38 | 0.04 | 11 | ||
2015-02-09 | 2014-12-31 | 0.3 | 0.34 | 0.04 | 13 | ||
2014-04-16 | 2014-03-31 | 0.24 | 0.28 | 0.04 | 16 | ||
2013-04-29 | 2013-03-31 | 0.19 | 0.15 | -0.04 | 21 | ||
2015-07-27 | 2015-06-30 | 0.33 | 0.39 | 0.06 | 18 | ||
2012-10-29 | 2012-09-30 | 0.23 | 0.17 | -0.06 | 26 | ||
2012-07-30 | 2012-06-30 | 0.4 | 0.46 | 0.06 | 15 |
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 Corp | 2024-06-30 | 1.7 M | Amvescap Plc. | 2024-06-30 | 1.6 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.5 M | Boston Partners Global Investors, Inc | 2024-09-30 | 1.4 M | Norges Bank | 2024-06-30 | 1 M | Allianz Asset Management Ag | 2024-06-30 | 972.4 K | Federated Hermes Inc | 2024-09-30 | 920.6 K | Charles Schwab Investment Management Inc | 2024-09-30 | 914.9 K | Fmr Inc | 2024-09-30 | 12.7 M | Vanguard Group Inc | 2024-09-30 | 9.4 M |
Allison Transmission's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 10.36 B.Market Cap |
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Allison Transmission's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.32 | 0.23 | |
| Return On Capital Employed | 0.20 | 0.11 | |
| Return On Assets | 0.13 | 0.07 | |
| Return On Equity | 0.55 | 0.36 |
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 0.1207 % which means that it generated a profit of $0.1207 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.5177 %, meaning that it created $0.5177 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 28th of November 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 28th of November 2024, Intangible Assets is likely to grow to about 1.6 B, while Total Assets are likely to drop about 3.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.56 | 14.24 | |
| Tangible Book Value Per Share | (18.43) | (19.35) | |
| Enterprise Value Over EBITDA | 6.71 | 10.79 | |
| Price Book Value Ratio | 4.29 | 4.43 | |
| Enterprise Value Multiple | 6.71 | 10.79 | |
| Price Fair Value | 4.29 | 4.43 | |
| Enterprise Value | 6.5 B | 6.1 B |
Leadership at Allison Transmission emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.0084 | Forward Dividend Yield 0.0084 | Forward Dividend Rate 1 | Beta 0.978 |
Basic technical analysis of Allison Stock
As of the 28th of November, Allison Transmission shows the Downside Deviation of 1.21, mean deviation of 1.18, and Risk Adjusted Performance of 0.2023. 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.
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.
| Allison Transmission 5875 Corp BondUS019736AF46 | View | |
| US019736AG29 Corp BondUS019736AG29 | View | |
| Allison Transmission 475 Corp BondUS019736AE70 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
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.
| Risk Adjusted Performance | 0.2023 | |||
| Market Risk Adjusted Performance | 0.3097 | |||
| Mean Deviation | 1.18 | |||
| Semi Deviation | 0.7562 | |||
| Downside Deviation | 1.21 | |||
| Coefficient Of Variation | 388.81 | |||
| Standard Deviation | 1.76 | |||
| Variance | 3.1 | |||
| Information Ratio | 0.1832 | |||
| Jensen Alpha | 0.2651 | |||
| Total Risk Alpha | 0.1656 | |||
| Sortino Ratio | 0.2657 | |||
| Treynor Ratio | 0.2997 | |||
| Maximum Drawdown | 9.25 | |||
| Value At Risk | (1.39) | |||
| Potential Upside | 2.73 | |||
| Downside Variance | 1.47 | |||
| Semi Variance | 0.5718 | |||
| Expected Short fall | (1.43) | |||
| Skewness | 1.74 | |||
| Kurtosis | 6.56 |
| Risk Adjusted Performance | 0.2023 | |||
| Market Risk Adjusted Performance | 0.3097 | |||
| Mean Deviation | 1.18 | |||
| Semi Deviation | 0.7562 | |||
| Downside Deviation | 1.21 | |||
| Coefficient Of Variation | 388.81 | |||
| Standard Deviation | 1.76 | |||
| Variance | 3.1 | |||
| Information Ratio | 0.1832 | |||
| Jensen Alpha | 0.2651 | |||
| Total Risk Alpha | 0.1656 | |||
| Sortino Ratio | 0.2657 | |||
| Treynor Ratio | 0.2997 | |||
| Maximum Drawdown | 9.25 | |||
| Value At Risk | (1.39) | |||
| Potential Upside | 2.73 | |||
| Downside Variance | 1.47 | |||
| Semi Variance | 0.5718 | |||
| Expected Short fall | (1.43) | |||
| Skewness | 1.74 | |||
| Kurtosis | 6.56 |
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.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 118.58 | |||
| Day Typical Price | 118.58 | |||
| Price Action Indicator | (0.49) | |||
| Period Momentum Indicator | (0.99) | |||
| Relative Strength Index | 74.78 |
Allison Transmission Corporate Filings
F4 | 19th of November 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 |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
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 Haznedar | Independent Director | Profile | |
| Alvaro GarciaTunon | Independent Director | Profile | |
| Thomas Rabaut | Lead Independent Director | Profile | |
| David Everitt | Independent Director | Profile |
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.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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 0.98 | Earnings Share 8.19 | Revenue Per Share 36.828 | 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.