AUTOLIV INC (ALV) Stock Fundamental Analysis
NYSE:ALV - New York Stock Exchange, Inc. - US0528001094 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ALV. ALV was compared to 83 industry peers in the Automobile Components industry. While ALV belongs to the best of the industry regarding profitability, there are concerns on its financial health. ALV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALV was profitable.
In the past year ALV had a positive cash flow from operations.
Each year in the past 5 years ALV has been profitable.
Each year in the past 5 years ALV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALV (8.26%) is better than 92.77% of its industry peers.
ALV has a Return On Equity of 28.35%. This is amongst the best in the industry. ALV outperforms 100.00% of its industry peers.
The Return On Invested Capital of ALV (18.07%) is better than 96.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALV is above the industry average of 9.58%.
The last Return On Invested Capital (18.07%) for ALV is above the 3 year average (14.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.26% | ||
| ROE | 28.35% | ||
| ROIC | 18.07% |
ROA(3y)6.54%
ROA(5y)5.54%
ROE(3y)21.22%
ROE(5y)17.59%
ROIC(3y)14.56%
ROIC(5y)12.11%
1.3 Margins
With a Profit Margin value of 6.21%, ALV perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
ALV's Profit Margin has improved in the last couple of years.
ALV's Operating Margin of 9.42% is in line compared to the rest of the industry. ALV outperforms 40.96% of its industry peers.
In the last couple of years the Operating Margin of ALV has grown nicely.
With a Gross Margin value of 18.56%, ALV is not doing good in the industry: 77.11% of the companies in the same industry are doing better.
ALV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.42% | ||
| PM (TTM) | 6.21% | ||
| GM | 18.56% |
OM growth 3Y4.73%
OM growth 5Y2.1%
PM growth 3Y5.56%
PM growth 5Y2.86%
GM growth 3Y0.34%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALV is creating value.
The number of shares outstanding for ALV has been reduced compared to 1 year ago.
ALV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALV has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ALV is 3.98, which is a good value as it means it would take ALV, 3.98 years of fcf income to pay off all of its debts.
ALV has a Debt to FCF ratio (3.98) which is in line with its industry peers.
A Debt/Equity ratio of 0.67 indicates that ALV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, ALV is doing worse than 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | N/A |
ROIC/WACC2.93
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALV may have some problems paying its short term obligations.
ALV has a worse Current ratio (0.96) than 93.98% of its industry peers.
ALV has a Quick 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.
Looking at the Quick ratio, with a value of 0.71, ALV is doing worse than 92.77% 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 1.34%.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
Looking at the last year, ALV shows a decrease in Revenue. The Revenue has decreased by -0.80% in the last year.
ALV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.98% yearly.
EPS 1Y (TTM)1.34%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%-18.45%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-4.91%
3.2 Future
The Earnings Per Share is expected to grow by 11.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.38% on average over the next years.
EPS Next Y13.08%
EPS Next 2Y16.37%
EPS Next 3Y15.43%
EPS Next 5Y11.58%
Revenue Next Year-0.17%
Revenue Next 2Y2.33%
Revenue Next 3Y3.17%
Revenue Next 5Y3.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.68, the valuation of ALV can be described as very reasonable.
Based on the Price/Earnings ratio, ALV is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALV to the average of the S&P500 Index (29.63), we can say ALV is valued rather cheaply.
A Price/Forward Earnings ratio of 10.33 indicates a reasonable valuation of ALV.
ALV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ALV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALV indicates a slightly more expensive valuation: ALV is more expensive than 60.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.77 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
ALV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALV has a very decent profitability rating, which may justify a higher PE ratio.
ALV's earnings are expected to grow with 15.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.49
EPS Next 2Y16.37%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, ALV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.03, ALV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, ALV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of ALV has a limited annual growth rate of 1.88%.
ALV has been paying a dividend for at least 10 years, so it has a reliable track record.
ALV has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.88%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
33.95% of the earnings are spent on dividend by ALV. This is a low number and sustainable payout ratio.
ALV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.95%
EPS Next 2Y16.37%
EPS Next 3Y15.43%
97.41
-1.68 (-1.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners74.9%
Inst Owner Change-0.89%
Ins Owners0.18%
Ins Owner Change0.09%
Market Cap7.57B
Analysts76.15
Price Target116.46 (19.56%)
Short Float %2.66%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP33.95%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-6.44%
Max EPS beat(2)6.72%
EPS beat(4)2
Avg EPS beat(4)-1.71%
Min EPS beat(4)-17%
Max EPS beat(4)9.85%
EPS beat(8)4
Avg EPS beat(8)2.51%
EPS beat(12)6
Avg EPS beat(12)8.98%
EPS beat(16)8
Avg EPS beat(16)6.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-5.72%
Max Revenue beat(4)-0.12%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)4
Avg Revenue beat(16)-1.72%
PT rev (1m)0.76%
PT rev (3m)-2.08%
EPS NQ rev (1m)-13.65%
EPS NQ rev (3m)-24.7%
EPS NY rev (1m)-7.68%
EPS NY rev (3m)-8.3%
Revenue NQ rev (1m)-4.52%
Revenue NQ rev (3m)-10.53%
Revenue NY rev (1m)-4.22%
Revenue NY rev (3m)-4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.73 | ||
| P/FCF | 15.77 | ||
| P/OCF | 7.15 | ||
| P/B | 3.33 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 6.79 |
EPS(TTM)8.34
EY8.56%
EPS(NY)9.43
Fwd EY9.68%
FCF(TTM)6.18
FCFY6.34%
OCF(TTM)13.63
OCFY13.99%
SpS133.72
BVpS29.28
TBVpS11.58
PEG (NY)0.89
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.26% | ||
| ROE | 28.35% | ||
| ROCE | 23.47% | ||
| ROIC | 18.07% | ||
| ROICexc | 19.62% | ||
| ROICexgc | 30.56% | ||
| OM | 9.42% | ||
| PM (TTM) | 6.21% | ||
| GM | 18.56% | ||
| FCFM | 4.62% |
ROA(3y)6.54%
ROA(5y)5.54%
ROE(3y)21.22%
ROE(5y)17.59%
ROIC(3y)14.56%
ROIC(5y)12.11%
ROICexc(3y)16.26%
ROICexc(5y)14.05%
ROICexgc(3y)25.32%
ROICexgc(5y)22.01%
ROCE(3y)19.48%
ROCE(5y)16.07%
ROICexcg growth 3Y11.64%
ROICexcg growth 5Y6.51%
ROICexc growth 3Y12.4%
ROICexc growth 5Y6.58%
OM growth 3Y4.73%
OM growth 5Y2.1%
PM growth 3Y5.56%
PM growth 5Y2.86%
GM growth 3Y0.34%
GM growth 5Y0.01%
F-Score7
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 149.61% | ||
| Cap/Sales | 5.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.53% | ||
| Profit Quality | 74.42% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score7
WACC6.16%
ROIC/WACC2.93
Cap/Depr(3y)154.12%
Cap/Depr(5y)134.24%
Cap/Sales(3y)5.89%
Cap/Sales(5y)5.57%
Profit Quality(3y)62.94%
Profit Quality(5y)105.41%
High Growth Momentum
Growth
EPS 1Y (TTM)1.34%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%-18.45%
EPS Next Y13.08%
EPS Next 2Y16.37%
EPS Next 3Y15.43%
EPS Next 5Y11.58%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-4.91%
Revenue Next Year-0.17%
Revenue Next 2Y2.33%
Revenue Next 3Y3.17%
Revenue Next 5Y3.38%
EBIT growth 1Y8.54%
EBIT growth 3Y13.19%
EBIT growth 5Y6.17%
EBIT Next Year51.75%
EBIT Next 3Y22.14%
EBIT Next 5YN/A
FCF growth 1Y17.07%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y7.73%
OCF growth 3Y12.04%
OCF growth 5Y10.57%