AUTOLIV INC (ALV) Stock Fundamental Analysis
NYSE:ALV - New York Stock Exchange, Inc. - US0528001094 - Common Stock - Currency: USD
Overall ALV gets a fundamental rating of 5 out of 10. We evaluated ALV against 80 industry peers in the Automobile Components industry. While ALV has a great profitability rating, there are quite some concerns on its financial health. ALV is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years ALV has been profitable.
In the past 5 years ALV always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.45%, ALV belongs to the best of the industry, outperforming 91.25% of the companies in the same industry.
ALV has a better Return On Equity (29.18%) than 100.00% of its industry peers.
The Return On Invested Capital of ALV (17.56%) is better than 96.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALV is significantly above the industry average of 9.12%.
The 3 year average ROIC (14.52%) for ALV is below the current ROIC(17.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 29.18% | ||
| ROIC | 17.56% |
ROA(3y)6.54%
ROA(5y)5.54%
ROE(3y)21.22%
ROE(5y)17.59%
ROIC(3y)14.52%
ROIC(5y)12.08%
1.3 Margins
The Profit Margin of ALV (6.63%) is comparable to the rest of the industry.
ALV's Profit Margin has improved in the last couple of years.
ALV's Operating Margin of 10.03% is in line compared to the rest of the industry. ALV outperforms 42.50% 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 18.97%, ALV is doing worse than 76.25% of the companies in the same industry.
In the last couple of years the Gross Margin of ALV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.03% | ||
| PM (TTM) | 6.63% | ||
| GM | 18.97% |
OM growth 3Y5.44%
OM growth 5Y2.52%
PM growth 3Y5.56%
PM growth 5Y2.86%
GM growth 3Y0.34%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALV is creating value.
The number of shares outstanding for ALV has been reduced compared to 1 year ago.
Compared to 5 years ago, ALV has less shares outstanding
ALV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that ALV is not in any danger for bankruptcy at the moment.
ALV has a Altman-Z score of 3.01. This is in the better half of the industry: ALV outperforms 67.50% of its industry peers.
ALV has a debt to FCF ratio of 4.45. This is a neutral value as ALV would need 4.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.45, ALV is doing worse than 61.25% of the companies in the same industry.
ALV has a Debt/Equity ratio of 0.77. This is a neutral value indicating ALV is somewhat dependend on debt financing.
ALV has a Debt to Equity ratio of 0.77. This is amonst the worse of the industry: ALV underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 3.01 |
ROIC/WACC2.68
WACC6.56%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ALV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.97, ALV is doing worse than 95.00% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that ALV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, ALV is doing worse than 91.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
ALV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
Measured over the past 5 years, ALV shows a small growth in Earnings Per Share. The EPS has been growing by 7.83% on average per year.
The Revenue has decreased by -2.29% in the past year.
The Revenue has been growing slightly by 3.98% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%36.08%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-1.41%
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 9.47% on average per year.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y5.61%
EPS Next 2Y12.68%
EPS Next 3Y14.4%
EPS Next 5Y9.47%
Revenue Next Year-3.29%
Revenue Next 2Y0.41%
Revenue Next 3Y2.37%
Revenue Next 5Y2.41%
3.3 Evolution
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.21, ALV is valued correctly.
ALV's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ALV is valued rather cheaply.
ALV is valuated reasonably with a Price/Forward Earnings ratio of 11.11.
ALV's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ALV to the average of the S&P500 Index (21.76), we can say ALV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.2 | ||
| EV/EBITDA | 7.47 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
ALV's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)1.69
EPS Next 2Y12.68%
EPS Next 3Y14.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, ALV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.30, ALV has a dividend in line with its industry peers.
ALV's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of ALV has a limited annual growth rate of 1.88%.
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)1.88%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
ALV pays out 31.63% 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.
DP31.63%
EPS Next 2Y12.68%
EPS Next 3Y14.4%
117.66
-0.34 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners72.5%
Inst Owner Change-1.22%
Ins Owners0.24%
Ins Owner Change9.07%
Market Cap9.08B
Analysts77.6
Price Target116.08 (-1.34%)
Short Float %3.5%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP31.63%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.02%
Min EPS beat(2)6.72%
Max EPS beat(2)27.32%
EPS beat(4)2
Avg EPS beat(4)2.65%
Min EPS beat(4)-17%
Max EPS beat(4)27.32%
EPS beat(8)5
Avg EPS beat(8)6.86%
EPS beat(12)7
Avg EPS beat(12)16.23%
EPS beat(16)8
Avg EPS beat(16)7.11%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)1.38%
Revenue beat(4)1
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.72%
Max Revenue beat(4)1.38%
Revenue beat(8)2
Avg Revenue beat(8)-1.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)4
Avg Revenue beat(16)-1.76%
PT rev (1m)8.4%
PT rev (3m)0.43%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-6.2%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.88 | ||
| P/FCF | 19.2 | ||
| P/OCF | 8.96 | ||
| P/B | 3.86 | ||
| P/tB | 9.35 | ||
| EV/EBITDA | 7.47 |
EPS(TTM)8.91
EY7.57%
EPS(NY)10.59
Fwd EY9%
FCF(TTM)6.13
FCFY5.21%
OCF(TTM)13.14
OCFY11.16%
SpS134.14
BVpS30.46
TBVpS12.58
PEG (NY)2.36
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 29.18% | ||
| ROCE | 24.08% | ||
| ROIC | 17.56% | ||
| ROICexc | 18.9% | ||
| ROICexgc | 28.04% | ||
| OM | 10.03% | ||
| PM (TTM) | 6.63% | ||
| GM | 18.97% | ||
| FCFM | 4.57% |
ROA(3y)6.54%
ROA(5y)5.54%
ROE(3y)21.22%
ROE(5y)17.59%
ROIC(3y)14.52%
ROIC(5y)12.08%
ROICexc(3y)16.2%
ROICexc(5y)14.02%
ROICexgc(3y)25.07%
ROICexgc(5y)21.86%
ROCE(3y)19.64%
ROCE(5y)16.17%
ROICexcg growth 3Y10.72%
ROICexcg growth 5Y5.98%
ROICexc growth 3Y12.07%
ROICexc growth 5Y6.39%
OM growth 3Y5.44%
OM growth 5Y2.52%
PM growth 3Y5.56%
PM growth 5Y2.86%
GM growth 3Y0.34%
GM growth 5Y0.01%
F-Score8
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.45 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 140.16% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.16% | ||
| Profit Quality | 68.95% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.01 |
F-Score8
WACC6.56%
ROIC/WACC2.68
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)0%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%36.08%
EPS Next Y5.61%
EPS Next 2Y12.68%
EPS Next 3Y14.4%
EPS Next 5Y9.47%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-1.41%
Revenue Next Year-3.29%
Revenue Next 2Y0.41%
Revenue Next 3Y2.37%
Revenue Next 5Y2.41%
EBIT growth 1Y8.23%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year46.24%
EBIT Next 3Y20.73%
EBIT Next 5YN/A
FCF growth 1Y2589.47%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y69.57%
OCF growth 3Y12.04%
OCF growth 5Y10.57%