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Allison Transmission ALSN

Allison Transmission scores average on business quality (4.9 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$109.86Oct 9, 2026
Business qualityAverage
Next earningsOct 28, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Allison Transmission does

    Allison Transmission Holdings manufactures fully automatic transmissions for medium- and heavy-duty commercial vehicles and defense applications. Commercial truck fleets and military agencies pay for these specialized drivetrains to secure heavy-duty vehicle reliability and performance.

  2. What it does best

    Allison commands superior operating efficiency, posting an operating margin of 23.2% that comfortably outpaces peers like Cummins at 9.7% and PACCAR at 12.8%. This pricing power stems from entrenched, decades-long relationships with commercial vehicle OEMs.

  3. The main risk

    A steep revenue contraction of 6.7% highlights mounting demand pressure in its core end markets. If fleet operators continue deferring heavy-duty truck purchases, volume declines will directly squeeze top-line performance.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margins sit strong at 23.2% and FCF margin reaches 16.7%, driving exceptional returns on equity of 27.9% that expand efficiently as the business scales.

MoatStrong

High switching costs lock in commercial and defense OEMs who rely on proprietary automatic transmission tech. Operating margins rank in the 86th sector percentile, protecting turf against rivals.

GrowthSlow

Revenue growth sits in the bottom quartile of its sector at negative 6.7%, reflecting a fading demand cycle compared to its historical revenue expansion.

Financial healthFair

Debt-to-equity sits high at 1.5x with interest coverage at 6.2x, supported by $737M in free cash flow, though the balance sheet remains heavily leveraged.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $4.2M outside pre-planned sales.

Our sealed record on ALSN

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is ALSN a good business?

Allison Transmission scores average on the Cluenex quality check (4.9 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health fair.

Are insiders buying ALSN?

In the last 90 days of SEC Form 4 filings: 3 sold $4.2M outside pre-planned sales.

When does ALSN report earnings?

Oct 28, 2026.

For members

See ALSN today

  • Today's verdict on ALSN, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Allison Transmission (ALSN)”, https://cluenex.com/stocks/alsn/, data as of Oct 10, 2026.