AUTOLIV INC (ALV)
US0528001094 - Common Stock
We assign a fundamental rating of 5 out of 10 to ALV. ALV was compared to 82 industry peers in the Automobile Components industry. ALV scores excellent on profitability, but there are concerns on its financial health. ALV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ALV had positive earnings in the past year.
ALV had a positive operating cash flow in the past year.
ALV had positive earnings in each of the past 5 years.
In the past 5 years ALV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALV (7.57%) is better than 90.12% of its industry peers.
ALV's Return On Equity of 27.49% is amongst the best of the industry. ALV outperforms 98.77% of its industry peers.
The Return On Invested Capital of ALV (15.86%) is better than 95.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALV is above the industry average of 9.39%.
The 3 year average ROIC (11.91%) for ALV is below the current ROIC(15.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 27.49% | ||
| ROIC | 15.86% |
ROA(3y)5.7%
ROA(5y)5.24%
ROE(3y)17.26%
ROE(5y)16.29%
ROIC(3y)11.91%
ROIC(5y)10.8%
1.3 Margins
ALV has a worse Profit Margin (5.98%) than 61.73% of its industry peers.
ALV's Profit Margin has improved in the last couple of years.
The Operating Margin of ALV (9.22%) is worse than 60.49% of its industry peers.
In the last couple of years the Operating Margin of ALV has grown nicely.
Looking at the Gross Margin, with a value of 18.12%, ALV is doing worse than 79.01% of the companies in the same industry.
In the last couple of years the Gross Margin of ALV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.22% | ||
| PM (TTM) | 5.98% | ||
| GM | 18.12% |
OM growth 3Y18.84%
OM growth 5Y1.73%
PM growth 3Y22.9%
PM growth 5Y16.25%
GM growth 3Y1.26%
GM growth 5Y-2.49%
2. Health
2.1 Basic Checks
ALV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ALV has less shares outstanding
The number of shares outstanding for ALV has been reduced compared to 5 years ago.
The debt/assets ratio for ALV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.75 indicates that ALV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALV has a Altman-Z score of 2.75. This is in the better half of the industry: ALV outperforms 64.20% of its industry peers.
ALV has a debt to FCF ratio of 4.47. This is a neutral value as ALV would need 4.47 years to pay back of all of its debts.
ALV's Debt to FCF ratio of 4.47 is on the low side compared to the rest of the industry. ALV is outperformed by 65.43% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that ALV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, ALV is doing worse than 83.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 2.75 |
ROIC/WACC2.63
WACC6.04%
2.3 Liquidity
ALV has a Current Ratio of 0.96. This is a bad value and indicates that ALV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ALV (0.96) is worse than 95.06% of its industry peers.
A Quick Ratio of 0.71 indicates that ALV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, ALV is doing worse than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.88%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.36% on average over the past years.
The Revenue has been growing slightly by 4.64% in the past year.
The Revenue has been growing slightly by 3.84% on average over the past years.
EPS 1Y (TTM)42.88%
EPS 3Y37.73%
EPS 5Y4.36%
EPS Q2Q%10.84%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.04%
Revenue growth 5Y3.84%
Sales Q2Q%-1.58%
3.2 Future
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.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y1.16%
EPS Next 2Y11.78%
EPS Next 3Y14.18%
EPS Next 5Y12.45%
Revenue Next Year0.61%
Revenue Next 2Y2.53%
Revenue Next 3Y3.45%
Revenue Next 5Y5.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.83, which indicates a very decent valuation of ALV.
62.96% 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 28.96, ALV is valued rather cheaply.
ALV is valuated reasonably with a Price/Forward Earnings ratio of 9.51.
The rest of the industry has a similar Price/Forward Earnings ratio as ALV.
When comparing the Price/Forward Earnings ratio of ALV to the average of the S&P500 Index (23.82), we can say ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALV.
ALV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.55 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ALV's earnings are expected to grow with 14.18% in the coming years.
PEG (NY)9.32
PEG (5Y)2.49
EPS Next 2Y11.78%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 4.30, ALV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, ALV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
The dividend of ALV has a limited annual growth rate of 1.61%.
ALV has paid a dividend for at least 10 years, which is a reliable track record.
ALV has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.61%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ALV pays out 34.98% of its income as dividend. This is a sustainable payout ratio.
ALV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.98%
EPS Next 2Y11.78%
EPS Next 3Y14.18%
AUTOLIV INC
NYSE:ALV (11/21/2024, 8:11:58 PM)
After market: 97.8 0 (0%)97.8
+1.28 (+1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.32
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 27.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.22% | ||
| PM (TTM) | 5.98% | ||
| GM | 18.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)42.88%
EPS 3Y37.73%
EPS 5Y
EPS Q2Q%
EPS Next Y1.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y