For those who appreciate value investing, NYSE:ALV is a compelling option with its solid fundamentals.

Last update: Jul 1, 2024

Uncover the hidden value in AUTOLIV INC (NYSE:ALV) as our stock screening tool recommends it as an undervalued choice. NYSE:ALV maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

What does the Valuation looks like for NYSE:ALV

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ALV scores a 6 out of 10:

65.85% of the companies in the same industry are more expensive than ALV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.36, ALV is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.81, the valuation of ALV can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALV is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ALV to the average of the S&P500 Index (20.16), we can say ALV is valued rather cheaply.
ALV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ALV may justify a higher PE ratio.
A more expensive valuation may be justified as ALV's earnings are expected to grow with 20.30% in the coming years.

Profitability Examination for NYSE:ALV

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ALV has earned a 7 out of 10:

ALV has a better Return On Assets (6.49%) than 90.24% of its industry peers.
ALV's Return On Equity of 22.23% is amongst the best of the industry. ALV outperforms 95.12% of its industry peers.
ALV has a better Return On Invested Capital (15.43%) than 93.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALV is above the industry average of 9.43%.
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.
In the last couple of years the Profit Margin of ALV has grown nicely.
ALV's Operating Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:ALV

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ALV, the assigned 4 reflects its health status:

ALV has a better Altman-Z score (2.96) than 67.07% of its industry peers.
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.

Assessing Growth Metrics 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.
Based on estimates for the next years, ALV will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.45% on average per year.
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.

For an up to date full fundamental analysis you can check the fundamental report of ALV

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.