Allison Transmission Intrinsic Stock Value – Allison Transmission and LiuGong Join Forces to Revolutionize Mining Trucks

September 19, 2024

Categories: Auto Parts, Intrinsic ValueTags: , , Views: 94

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The company has a global presence, with operations in North America, Europe, Asia, and South America. Allison’s innovative technology and commitment to quality have established them as a trusted and reliable partner for customers in the construction equipment industry. With a strong focus on sustainability and efficiency, the company has been at the forefront of revolutionizing the transportation industry for over a century. Recently, Allison Transmission ($NYSE:ALSN) announced a strategic partnership with LiuGong, a major player in the construction equipment market. By joining forces, both companies aim to revolutionize the mining truck industry by leveraging their respective strengths and expertise.

This partnership will see LiuGong’s mining trucks equipped with Allison’s advanced propulsion solutions. These solutions are known for their durability, fuel efficiency, and high performance, making them an ideal fit for the demanding conditions of the mining industry. This collaboration will not only provide customers with superior mining trucks but also drive innovation and progress in the construction equipment industry. With both companies having a strong global presence and a proven track record of success, this collaboration has the potential to transform the mining truck industry and set new standards for efficiency and performance.

Stock Price

On Tuesday, the world-renowned transmission manufacturer, Allison Transmission, announced a groundbreaking partnership with LiuGong, a leading global construction equipment company. This collaboration is set to revolutionize the mining industry with the introduction of new transmission technology for mining trucks. This announcement caused a stir in the market, as evidenced by the slight increase in ALLISON TRANSMISSION stock, which opened at $88.77 and closed at $88.46, up by 0.37% from the previous closing price of $88.13. The strategic alliance between Allison Transmission and LiuGong comes at a time when the mining industry is seeking innovative solutions to increase efficiency and productivity. With years of expertise and cutting-edge technology, both companies are well-equipped to deliver on this shared goal. This joint venture will see the integration of Allison’s advanced transmission systems into LiuGong’s mining trucks, resulting in improved performance and overall operational cost reduction. One of the key benefits of this collaboration is the enhanced fuel efficiency that the new transmission technology will bring to mining trucks. This is achieved through Allison’s patented torque converter technology that allows for continuous power transfer, eliminating the need for gear shifting.

As a result, there is a significant reduction in power loss and smoother operation, leading to reduced fuel consumption and emissions. Moreover, the integration of Allison’s transmission technology will also improve truck durability and reliability, crucial factors in the demanding and rugged conditions of mining operations. The advanced electronic controls will also provide real-time monitoring and diagnostic capabilities, enabling proactive maintenance and reducing downtime. This partnership between Allison Transmission and LiuGong marks a significant step towards innovation and progress in the mining industry. With their combined expertise and resources, they are poised to deliver game-changing solutions that will improve the efficiency and sustainability of mining operations worldwide. As they strive towards revolutionizing mining trucks, investors and industry experts alike will closely monitor the results of this groundbreaking collaboration. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

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

    Total Revenues Net Income Net Margin
    3.04k 673 22.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

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

    Operations Investing Financing
    784 -129 -332
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

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

    Total Assets Total Liabilities Book Value Per Share
    5.03k 3.79k 13.23
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

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

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    13.4% 19.8% 30.8%
    FCF Margin ROE ROA
    25.8% 49.3% 11.6%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Allison Transmission Intrinsic Stock Value

    After conducting a thorough analysis of ALLISON TRANSMISSION, I have come to some key findings about the company’s performance and potential. Let’s start with the basics. ALLISON TRANSMISSION is a leading manufacturer of commercial-duty automatic transmissions and hybrid propulsion systems for medium and heavy-duty vehicles. One of the main takeaways from my analysis is the company’s intrinsic value, which is calculated to be around $54.2 per share. This is derived from our proprietary Valuation Line, which takes into account various financial metrics such as revenue, profit margins, and future growth projections. This indicates that the stock is currently overvalued by 63.3%, with its current trading price at $88.46. While ALLISON TRANSMISSION has a strong reputation and a solid track record in the industry, the current stock price does not seem to align with its intrinsic value. This could be due to various factors such as market speculation and investor sentiment. However, as an investor, it is important to consider the fundamentals of the company rather than just focusing on short-term fluctuations in the stock price. However, the company has shown resilience and has implemented cost-cutting measures to mitigate these effects. Additionally, with the increasing demand for electric and hybrid vehicles, ALLISON TRANSMISSION’s expertise in this field could provide opportunities for growth in the future. As an investor, it is important to conduct thorough research and consider the company’s fundamentals before making any investment decisions. Future developments and performance of ALLISON TRANSMISSION should also be closely monitored to assess its potential for long-term growth. More…

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  • 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 has entered into a partnership with LiuGong, a Chinese construction and mining equipment manufacturer, to provide propulsion solutions for their mining trucks. This partnership is expected to benefit both companies, with Allison gaining access to the growing Chinese market and LiuGong gaining access to proven and reliable propulsion technology. As a leading designer and manufacturer of propulsion solutions, Allison Transmission’s expertise is expected to enhance LiuGong’s mining trucks’ efficiency and performance.

    This move is seen as a strategic investment by Allison to expand its global reach and tap into the growing demand for mining equipment in China. It also reflects the company’s commitment to innovation and collaboration for sustainable growth.

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