Allison Transmission: This High-Quality Business Is Still A Buy After Earnings

Summary

  • Allison Transmission Holdings designs and manufactures vehicle propulsion solutions, specializing in durable automatic transmissions for commercial vehicles. The company has a strong reputation for quality, reliability, and fuel efficiency.
  • They are a high-quality business with sector leading profitability metrics, a healthy balance sheet, growth potential all while trading at a low valuation.
  • They have repurchased half their shares while their valuation has been depressed do to unknown reasons, most likely fear of electric vehicle movement or competition.

Close-up of a motor vehicle gearbox transmission

Douglas Sacha/Moment via Getty Images

Is ALSN still a Buy?

Allison Transmission Inc, (NYSE:ALSN) reported earnings last week on 2/13/2024 and blew expectations out of the water. EPS Normalized Actual came in at $2.04, beating expectations by $0.54. EPS GAAP Actual came in at $1.91, beating

This article was written by

The author is a mechanical engineer. He holds a B.S. in Mechanical Engineering and an M.B.A in Finance. He employs evidence and factor-based investing in his personal portfolio.He will sometimes seculate for fun and take small positions in individual stocks he believes are trading at a discount.

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.

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