Editor's note: Seeking Alpha is proud to welcome Wilcox Research as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click
Allison Transmission: A Cyclical Trading Below Intrinsic Value
Summary
- Allison Transmission trades at an 11% discount to its intrinsic value of $50 per share.
- Allison has an impressive 9% free cash flow yield.
- Increasing revenue and share repurchases will drive free cash flow per share growth over the next 2-3 years.
Contrarian investor covering deep value equities. I conduct due diligence on individual companies with a focus on inflection points and catalysts.Actionable ideas only.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ALSN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.