Allison Transmission Holdings, Inc.
Key Drivers
- Strong cash flow
- Leverage rising
- Margin compression
AIAI Summary
ALSN's thesis has shifted from a simple high-margin cash generator to a more leveraged integration story after Dana Off-Highway, so the stock now hinges on proving synergy delivery and margin stabilization rather than just revenue growth; if the 117 support breaks, the market is likely to keep pricing in execution risk.
Price Chart
Financial Metrics
Deep Analysis
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Fundamental Analysis
Key Financial Insights:
- •Strong cash flow
- •Leverage rising
- •Margin compression
ALSN remains highly profitable and cash-generative on FY2025 results, but the latest quarter showed materially weaker margins, tighter liquidity, and higher leverage, making the stock a hold-on-fundamentals name rather than an obvious bargain.
Price Behavior
Key Price Behavior Insights:
- •Lower highs
- •Failed support
- •Base at $117
ALSN remains in a short-term downtrend after failing support at $130-$131 and $124-$125, with $117 now the key level to hold before any rebound toward $124-$125 can improve the chart.
Strong rally to $136.00 last month quickly reversed
Sentiment & News
Key News Insights:
- •Acquisition boost
- •Margin pressure
- •Cash resilience
Allison Transmission beat Q1 expectations as the Off-Highway acquisition drove strong revenue growth, while integration costs pressured margins despite solid cash generation and a maintained dividend.
The news is modestly positive for ALSN, as acquisition-led growth and shareholder returns outweigh near-term integration drag
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