ALSN

Allison Transmission Holdings Inc.

Industrial/Transportation


Presented:03/21/2014
Price:$29.38
Cap:$5.30B
Current Price:$98.34
Cap:$8.57B

Presented

Date03/21/2014
Price$29.38
Market Cap$5.30B
Ent Value$7.81B
P/E Ratio25.18x
Book Value$7.79
Div Yield1.9%
Shares O/S180.31M
Ave Daily Vol940,000
Short Int0.72%

Current

Price$98.34
Market Cap$8.57B
Allison Transmission Holdings, Inc. and its subsidiaries design, manufacture, and sell commercial and defense automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy and mining off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company offers 13 transmission product lines with approximately 100 different product models. It markets its transmissions under Allison Transmission brand name and remanufactured transmissions under ReTran brand name. The company also sells branded replacement parts, support equipment, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. In addition, it designs and manufactures hybrid-propulsion systems for transit buses. Allison Transmission Holdings serves customers through an independent network of approximately 1,400 independent distributor and dealer locations worldwide. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

Highlights

The presenter is long shares of Allison Transmission Holdings (ALSN), the market leader in automatic transmissions for trucks. The company has a virtual monopoly in its core end markets, and is primarily US-focused, he added. Class 5 through 8 trucks typically drive through cities and have to start and stop a lot, so they benefit from having an automatic transmission. All of the company’s end markets are inflecting, and with the potential to earn $2.75-3.00 in FCF per-share exiting 2015, he sees upside to $45.

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