What is Allison Transmission Holdings Net Margin %?
Allison Transmission HoldingsALSN +2.29%95 Net Margin % is 7.97% as of Mar. 2026, which is 63% below its 10-year median of 21.44. 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 1,326 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 92.91% on this metric.
The historical rank and industry rank for Allison Transmission Holdings's Net Margin % or its related term are showing as below:
ALSN'
s Net Margin % Range Over the Past 10 Years
Min: 11.68 Med: 21.44 Max: 23.55
Current: 14.88
ALSN's Net Margin % is ranked better than 92.91% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 3.205
vs ALSN: 14.88
Allison Transmission Holdings (NYSE:ALSN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Allison Transmission Holdings Net Margin % Related Terms
Allison Transmission Holdings Net Margin % Historical Data
* 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Net 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 Net Margin % of 7.97% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Allison Transmission Holdings and its competitors. This is 63% below median its historical median of 21.44. Over the past decade, Allison Transmission Holdings' Net Margin % has ranged from 11.68 to 23.55. According to the industry distribution chart, Allison Transmission Holdings ranks #94 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 7.1%.
Is Allison Transmission Holdings' Net Margin % too high?
Allison Transmission Holdings' current Net Margin % of 7.97% is 63% below median its 10-year median of 21.44. Over the past 10 years, this metric has ranged from a low of 11.68 to a high of 23.55. The Vehicles & Parts industry median Net Margin % is 3.21. Allison Transmission Holdings' value of 7.97% is 148.7% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #94 out of 1326 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' Net Margin % compare to ALV and MBLY?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #94 out of 1326 companies for Net Margin %. This places Allison Transmission Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.21. Allison Transmission Holdings' value of 7.97% is 148.7% above this benchmark. Historically, Allison Transmission Holdings' own Net Margin % has ranged from 11.68 to 23.55 over the past decade. While the company's 10-year median is 21.44 vs. the industry median of 3.21, 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 Net Margin % for a Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.21, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current Net Margin % of 7.97% is 148.7% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current Net Margin % is 7.97%, which is 63% below median its own 10-year median of 21.44. 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 Net Margin % is 7.97%, which is 63% below median its 10-year median of 21.44 and 148.7% above the Vehicles & Parts industry median of 3.21. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Net Margin % is 7.97% 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:
Net Margin %: 7.97% (63% below median its 10-year median of 21.44)
GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
Industry Position: 148.7% above the Vehicles & Parts median (#94 of 1326)
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
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