NYSE:ALV, an undervalued stock with good fundamentals.

Last update: Jun 6, 2024

Consider AUTOLIV INC (NYSE:ALV) as a top value stock, identified by our stock screening tool. NYSE:ALV shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of NYSE:ALV

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ALV, the assigned 8 reflects its valuation:

Based on the Price/Earnings ratio, ALV is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALV to the average of the S&P500 Index (28.27), we can say ALV is valued rather cheaply.
The Price/Forward Earnings ratio is 9.87, which indicates a very decent valuation of ALV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALV indicates a somewhat cheap valuation: ALV is cheaper than 69.05% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.11. ALV is valued rather cheaply when compared to this.
ALV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALV is cheaper than 61.90% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ALV may justify a higher PE ratio.
ALV's earnings are expected to grow with 20.64% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:ALV

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ALV scores a 8 out of 10:

ALV's Return On Assets of 6.49% is amongst the best of the industry. ALV outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 22.23%, ALV belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
ALV has a Return On Invested Capital of 15.43%. This is amongst the best in the industry. ALV outperforms 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALV is above the industry average of 9.38%.
The last Return On Invested Capital (15.43%) for ALV is above the 3 year average (11.91%), which is a sign of increasing profitability.
The Profit Margin of ALV (5.10%) is better than 76.19% of its industry peers.
In the last couple of years the Profit Margin of ALV has grown nicely.
With a decent Operating Margin value of 9.06%, ALV is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of ALV has grown nicely.

Health Assessment of NYSE:ALV

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ALV scores a 5 out of 10:

An Altman-Z score of 3.07 indicates that ALV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, ALV is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
ALV has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as ALV would need 3.68 years to pay back of all of its debts.
ALV has a Debt to FCF ratio of 3.68. This is in the better half of the industry: ALV outperforms 71.43% of its industry peers.

How We Gauge Growth for NYSE:ALV

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ALV was assigned a score of 6 for growth:

ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.33%, which is quite impressive.
Looking at the last year, ALV shows a quite strong growth in Revenue. The Revenue has grown by 15.05% in the last year.
ALV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.45% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of ALV for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.