What is Allison Transmission Holdings FCF Margin %?
Allison Transmission HoldingsALSN +2.29%95 FCF Margin % is 7.33% as of Mar. 2026, which is 66% below its 10-year median of 21.84. GuruFocus rates ALSN with a GF Score™ of 95/100 and a GF Value™ of $124.08 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,321 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 94.55% on this metric.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Allison Transmission Holdings's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allison Transmission Holdings FCF Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Allison Transmission Holdings (ALSN) has a FCF Margin % of 7.33% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Allison Transmission Holdings and its competitors. This is 66% below median its historical median of 21.84. Over the past decade, Allison Transmission Holdings' FCF Margin % has ranged from 16.68 to 28.26. According to the industry distribution chart, Allison Transmission Holdings ranks #72 out of 1321 companies in the Vehicles & Parts industry, placing it in the top 5.5%.
Is Allison Transmission Holdings' FCF Margin % too high?
Allison Transmission Holdings' current FCF Margin % of 7.33% is 66% below median its 10-year median of 21.84. Over the past 10 years, this metric has ranged from a low of 16.68 to a high of 28.26. The Vehicles & Parts industry median FCF Margin % is 2.22. Allison Transmission Holdings' value of 7.33% is 230.2% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #72 out of 1321 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Allison Transmission Holdings has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' FCF Margin % compare to ALV and MBLY?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #72 out of 1321 companies for FCF Margin %. This places Allison Transmission Holdings in the top 6% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.22. Allison Transmission Holdings' value of 7.33% is 230.2% above this benchmark. Historically, Allison Transmission Holdings' own FCF Margin % has ranged from 16.68 to 28.26 over the past decade. While the company's 10-year median is 21.84 vs. the industry median of 2.22, Allison Transmission Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Vehicles & Parts company?
The median FCF Margin % among Vehicles & Parts companies is 2.22, based on 1,321 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current FCF Margin % of 7.33% is 230.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median FCF Margin % is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current FCF Margin % is 7.33%, which is 66% below median its own 10-year median of 21.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allison Transmission Holdings stock overvalued right now?
Based on GuruFocus' analysis, Allison Transmission Holdings (ALSN) is currently considered Fairly Valued. The stock's GF Value™ is $124.08, compared to a current price of $119.68 — trading 3.5% below its estimated fair value. The current FCF Margin % is 7.33%, which is 66% below median its 10-year median of 21.84 and 230.2% above the Vehicles & Parts industry median of 2.22. Allison Transmission Holdings' overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current FCF Margin % is 7.33% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allison Transmission Holdings (ALSN) Overvalued in 2026?
Based on GuruFocus' analysis, Allison Transmission Holdings stock appears to be undervalued.
The current stock price of $119.68 is trading 3.5% below its estimated GF Value™ of $124.08.
GuruFocus considers Allison Transmission Holdings to be Fairly Valued.
Key valuation signals for ALSN:
FCF Margin %: 7.33% (66% below median its 10-year median of 21.84)
GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
Industry Position: 230.2% above the Vehicles & Parts median (#72 of 1321)
No single metric tells the full story. See the ALSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allison Transmission Holdings Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. Its automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business commands approximately 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motorhomes). Allison also produces commercial hybrid propulsion systems and is developing fully electric powertrains.
95GF Score
Get the complete analysis for ALSN
FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ALSN has been successfully added to your 
