Allison Transmission HoldingsALSN -2.12%96 Return-on-Tangible-Asset is 12.45% as of Mar. 2026, which is 64% below its 10-year median of 34.88. GuruFocus rates ALSN with a GF Score™ of 96/100 and a GF Value™ of $127.25 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,334 Vehicles & Parts companies, Allison Transmission Holdings ranks better than 97.6% on this metric.
The historical rank and industry rank for Allison Transmission Holdings's Return-on-Tangible-Asset or its related term are showing as below:
ALSN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 18.33 Med: 34.88 Max: 54.59
Current: 18.33
During the past 13 years, Allison Transmission Holdings's highest Return-on-Tangible-Asset was 54.59%. The lowest was 18.33%. And the median was 34.88%.
ALSN's Return-on-Tangible-Asset is ranked better than 97.6% of 1334
companies
in the Vehicles & Parts industry
Industry Median: 3.115
vs ALSN: 18.33
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Allison Transmission Holdings Return-on-Tangible-Asset Related Terms
Allison Transmission Holdings Return-on-Tangible-Asset 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.
ALSN vs ALV, AUR, APTV: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, Allison Transmission Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 12.45% mean?
Allison Transmission Holdings (ALSN) has a Return-on-Tangible-Asset of 12.45% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Allison Transmission Holdings and its competitors. This is 64% below median its historical median of 34.88. Over the past decade, Allison Transmission Holdings' Return-on-Tangible-Asset has ranged from 18.33 to 54.59. According to the industry distribution chart, Allison Transmission Holdings ranks #32 out of 1334 companies in the Vehicles & Parts industry, placing it in the top 2.4%.
Is Allison Transmission Holdings' Return-on-Tangible-Asset too high?
Allison Transmission Holdings' current Return-on-Tangible-Asset of 12.45% is 64% below median its 10-year median of 34.88. Over the past 10 years, this metric has ranged from a low of 18.33 to a high of 54.59. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.12. Allison Transmission Holdings' value of 12.45% is 299.7% above this industry median. Based on the distribution chart, Allison Transmission Holdings ranks #32 out of 1334 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 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allison Transmission Holdings' Return-on-Tangible-Asset compare to ALV and AUR?
According to the Vehicles & Parts industry distribution chart, Allison Transmission Holdings ranks #32 out of 1334 companies for Return-on-Tangible-Asset. This places Allison Transmission Holdings in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.12. Allison Transmission Holdings' value of 12.45% is 299.7% above this benchmark. Historically, Allison Transmission Holdings' own Return-on-Tangible-Asset has ranged from 18.33 to 54.59 over the past decade. While the company's 10-year median is 34.88 vs. the industry median of 3.12, 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.12, based on 1,334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current Return-on-Tangible-Asset of 12.45% is 299.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Allison Transmission Holdings and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current Return-on-Tangible-Asset is 12.45%, which is 64% below median its own 10-year median of 34.88. 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 Modestly Undervalued. The stock's GF Value™ is $127.25, compared to a current price of $111.75 — trading 12.2% below its estimated fair value. The current Return-on-Tangible-Asset is 12.45%, which is 64% below median its 10-year median of 34.88 and 299.7% above the Vehicles & Parts industry median of 3.12. Allison Transmission Holdings' overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current Return-on-Tangible-Asset is 12.45% 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 $111.75 is trading 12.2% below its estimated GF Value™ of $127.25.
GuruFocus considers Allison Transmission Holdings to be Modestly Undervalued.
Key valuation signals for ALSN:
Return-on-Tangible-Asset: 12.45% (64% below median its 10-year median of 34.88)
GF Value™: $127.25 vs. price of $111.75 (12.2% below fair value)
Industry Position: 299.7% above the Vehicles & Parts median (#32 of 1334)
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.
96GF Score
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