ALSN (Allison Transmission Holdings) ROCE %: 11.81% (As of Mar. 2026)


ALSN Allison Transmission Holdings Inc ALSN
95 GF Score
Price $119.68
GF Value $124.08
Valuation Fairly Valued
! 3 Warning Signs
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What is Allison Transmission Holdings ROCE %?

Allison Transmission Holdings ALSN +2.29% 95 ROCE % is 11.81% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Allison Transmission Holdings's annualized ROCE % for the quarter that ended in Mar. 2026 was 11.81%.

Allison Transmission Holdings  (NYSE:ALSN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Allison Transmission Holdings ROCE % Related Terms

Allison Transmission Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Allison Transmission Holdings's ROCE % can be seen below:

* 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 ROCE % Chart

Allison Transmission Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.98 18.63 21.43 21.08 17.15

Allison Transmission Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.99 21.57 16.45 12.86 11.81
ALSN
95GF Score
Allison Transmission Holdings Inc ALSN
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Allison Transmission Holdings ROCE % Calculation

Allison Transmission Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=896/( ( (5336 - 506) + (6082 - 460) )/ 2 )
=896/( (4830+5622)/ 2 )
=896/5226
=17.15 %

Allison Transmission Holdings's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=772/( ( (6082 - 460) + (8703 - 1247) )/ 2 )
=772/( ( 5622 + 7456 )/ 2 )
=772/6539
=11.81 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 11.81% mean?
Allison Transmission Holdings (ALSN) has a ROCE % of 11.81% as of Mar. 2026.
Is Allison Transmission Holdings' ROCE % too high?
Allison Transmission Holdings' current ROCE % is 11.81%. The Vehicles & Parts industry median ROCE % is 7.94. Allison Transmission Holdings' value of 11.81% is 48.7% above this industry median. 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' ROCE % compare to ALV and MBLY?
Allison Transmission Holdings' ROCE % of 11.81% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.94. Allison Transmission Holdings' value of 11.81% is 48.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.94, based on 1,319 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allison Transmission Holdings's current ROCE % of 11.81% is 48.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allison Transmission Holdings's current ROCE % is 11.81%. 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 ROCE % is 11.81% and 48.7% above the Vehicles & Parts industry median of 7.94. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Allison Transmission Holdings (ALSN), the current ROCE % is 11.81% 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:

  • ROCE %: 11.81%
  • GF Value™: $124.08 vs. price of $119.68 (3.5% below fair value)
  • GF Score™: 95/100 with 3 warning signs
  • Industry Position: 48.7% above the Vehicles & Parts median

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

Other Exchanges 1A7:Germany
Address One Allison Way, Indianapolis, IN, USA, 46222
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$119.68
Price
$124.08
GF Value