Allison Transmission Holdings, Inc. cash flow to debt ratio of 28.21% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Allison Transmission Holdings, Inc.'s free cash flow has decreased 1.37% from $658.00M last year to $649.00M, signaling decreasing performance

Allison Transmission Holdings, Inc.'s debt to equity ratio is 2.08, which means that the company's assets are unhealthy financed, signaling financial risk.

Allison Transmission Holdings, Inc.'s debt has increased relative to shareholder equity from 1.47 last year to 2.08 today, signaling weakened financials

Allison Transmission Holdings, Inc. has a net debt to EBITDA ratio of 1.39x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Allison Transmission Holdings, Inc.'s interest coverage ratio of 5.63 indicates that earnings with good margin can cover interest payments on company debt

Allison Transmission Holdings, Inc.'s profit margin has decreased (36.86%) in the last year from 22.67% to 14.31%, signaling decreasing performance

Allison Transmission Holdings, Inc.'s short-term assets of $2.23B exceed its short-term liabilities of $460.00M

Allison Transmission Holdings, Inc.'s return on assets of 6.07% is higher than the 5.00% threshold, indicating efficient asset utilization

Allison Transmission Holdings, Inc.'s return on equity of 27.88%, is higher than 15.00%, indicating good performance

Allison Transmission Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Allison Transmission Holdings, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Allison Transmission Holdings, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Allison Transmission Holdings, Inc. has a free cash flow yield of 6.28%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Allison Transmission Holdings, Inc.'s yearly earnings has decreased 14.77% since last year from $731.00M to $623.00M, signaling decreasing performance

Allison Transmission Holdings, Inc.'s yearly revenue has decreased 6.67% since last year from $3.23B to $3.01B, signaling decreasing performance

ROIC 9.56% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Allison Transmission Holdings, Inc.'s 3-year revenue CAGR of 2.82% is positive, indicating growing revenue over the past 3 years

Allison Transmission Holdings, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Allison Transmission Holdings, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Allison Transmission Holdings, Inc. is overvalued relative to its fair value price of 109.54 based on Discounted Cash Flow model

Allison Transmission Holdings, Inc. has an earnings yield of 5.12%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Allison Transmission Holdings, Inc. is overvalued relative to its fair value price of 69.25 based on EBITDA multiple model

Allison Transmission Holdings, Inc. has an EV/EBITDA ratio of 11.46x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Allison Transmission Holdings, Inc. is undervalued relative to its fair value price of 212.63 based on Earnings Fair Value model

Allison Transmission Holdings, Inc. has a PEG-ratio under 1 which is considered undervalued

Allison Transmission Holdings, Inc. has a price-to-book ratio of 5.22x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Allison Transmission Holdings, Inc. has a price-to-sales ratio of 2.80x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue