Allison Transmission: Attractive Valuation with Potential to Exceed Analysts’ Estimates

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Allison Transmission ($NYSE:ALSN) is an attractive investment opportunity for those looking to capitalize on a company that offers an enticing valuation and potential to exceed analysts’ estimates. The company, which is headquartered in Indianapolis, Indiana, is one of the world’s leading manufacturers of medium- and heavy-duty automatic transmissions and hybrid propulsion systems. Their innovative products have revolutionized the commercial vehicle industry, making them the go-to supplier for leading truck and bus manufacturers. In addition to providing quality products, Allison Transmission’s financials also provide investors with a compelling reason to invest. The company’s stock has been trading at a lower multiple than its peers and yet still offers potential for growth.

This means that investors can get a good value for their money by investing in the stock of this company. Furthermore, their consistent track record of surpassing analysts’ estimates on a regular basis provides further upside potential. Overall, Allison Transmission presents an attractive investment opportunity for those seeking to capitalize on a company that offers an enticing valuation and potential to exceed analysts’ estimates. Their innovative product range and consistent track record of surpassing expectations makes them a perfect choice for those looking to profit from their investments.

Stock Price

Allison Transmission (ALLISON) is an attractive stock for investors due to its high valuation potential. On Monday, ALLISON stock opened at $48.0 and closed at $48.5, up by 1.5% from previous closing price of 47.8. This positive performance is further supported by analysts’ estimates that the stock has the potential to exceed expectations in the coming quarter.

Furthermore, ALLISON has a strong balance sheet with cash flow growth of 8% year over year, which provides a strong foundation to support its growth prospects. Overall, the combination of a strong financial position, favorable analyst estimates and attractive valuation make ALLISON an attractive stock for investors. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Allison Transmission. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Allison Transmission. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Allison Transmission. More…

Key Ratios Snapshot

Some of the financial key ratios for Allison Transmission are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of Allison Transmission‘s wellbeing. Our results revealed that when classified according to the Star Chart, ALLISON TRANSMISSION falls into the ‘rhino’ category, indicating that they have achieved moderate revenue or earnings growth. This type of company will likely appeal to investors who are seeking a steady growth rate and a healthy dividend. Our analysis also concluded that ALLISON TRANSMISSION has a high health score of 8/10, taking into account its cashflows, debt and other financial indicators. This indicates that the company is capable of paying off its debt and funding future business operations. Additionally, ALLISON TRANSMISSION performs particularly well in terms of dividend, profitability, and asset strength. Their growth rate, however, is only considered to be moderate. More…

Peers

With headquarters in Indianapolis, Indiana, Allison Transmission has approximately 2,700 employees and over 70 facilities worldwide. The company’s products are used in a variety of applications, including on-highway trucks (light-, medium- and heavy-duty), buses, motor homes, off-highway vehicles and equipment (construction, agricultural and mining), and military vehicles. Allison Transmission also has a growing global customer base in the energy sector, including gas compression and renewable energy (wind and solar). The company’s primary competitors are XL Fleet Corp, Tata Motors Ltd, Electrameccanica Vehicles Corp Ltd.

– XL Fleet Corp ($NYSE:XL)

Founded in 2001, Fleet Corp is a provider of enterprise software solutions. The company’s products are used by organizations in a variety of industries for asset management, compliance, and tracking purposes. Fleet Corp has a market cap of 111.42M as of 2022 and a return on equity of -9.42%. The company’s products are used by organizations in a variety of industries for asset management, compliance, and tracking purposes.

– Tata Motors Ltd ($NYSE:TTM)

Tata Motors Ltd. is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. Part of the Tata Group, it was formerly known as Tata Engineering and Locomotive Company (TELCO). Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It has assembly and manufacturing plants in Jamshedpur, Lucknow, Pantnagar, Guwahati, Dharwad, Sanand, Pune and Dhenkanal.

– Electrameccanica Vehicles Corp Ltd ($NASDAQ:SOLO)

Electrameccanica Vehicles Corp Ltd is a Canadian electric vehicle manufacturer based in Vancouver, British Columbia. The company’s first product is the Solo, a single-seat electric vehicle designed for commuting and errands. The Solo uses a 20 kWh lithium-ion battery and has a range of 160 km (100 mi). It is capable of reaching speeds of up to 130 km/h (81 mph).

Summary

Allison Transmission is an attractive investment opportunity as it is currently trading at a discount to its intrinsic value. The company has demonstrated consistent growth over the past few years and is expected to continue to do so in the future. Its strong competitive positioning and robust product portfolio makes it well placed to capitalize on new opportunities. Analysts are currently predicting that Allison will outperform earnings estimates for the foreseeable future, which could lead to a further appreciation of its stock price in the long term.

Furthermore, investors should consider the company’s dividend yield, which is currently at around 1.5%, providing additional long-term value to shareholders. Consequently, Allison Transmission is an attractive investment for those seeking both short-term gains and long-term returns.