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Allison Transmission Holdings, Inc. and its subsidiaries ( Allison, we, us or our ) is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. The business was founded in 1915 and has been headquartered in Indianapolis, Indiana since inception.
Margins and capital returns are both well above average: 29.24% operating margin, ROIC at 15.80%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue declined 6.7% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from 21.11% to 15.80%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.65B
▼ -6.7% YoY
Net Income (TTM)
$543M
▼ -14.8% YoY
Op. Margin
22.63%
▼ -1.5pp YoY
ROIC
13.67%
▼ -5.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$609M
▲ +0.5% YoY
Op. Cash Flow (TTM)
$811M
▲ +4.4% YoY
Net Debt
$4.08B
Cash & Equiv.
$311M
5Y CAGR: +7.7%
5Y CAGR: +8.2%
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