AUTOLIV INC (ALV) Stock Fundamental Analysis
NYSE:ALV - New York Stock Exchange, Inc. - US0528001094 - Common Stock - Currency: USD
Taking everything into account, ALV scores 5 out of 10 in our fundamental rating. ALV was compared to 81 industry peers in the Automobile Components industry. ALV scores excellent on profitability, but there are concerns on its financial health. ALV has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
ALV has a Return On Assets of 8.45%. This is amongst the best in the industry. ALV outperforms 92.59% of its industry peers.
ALV has a better Return On Equity (29.18%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.56%, ALV belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALV is significantly above the industry average of 8.88%.
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
ALV has a Profit Margin (6.63%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ALV has grown nicely.
ALV has a Operating Margin (10.03%) which is comparable to the rest of the industry.
ALV's Operating Margin has improved in the last couple of years.
ALV's Gross Margin of 18.97% is on the low side compared to the rest of the industry. ALV is outperformed by 74.07% of its industry peers.
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.
ALV has less shares outstanding than it did 1 year ago.
ALV has less shares outstanding than it did 5 years ago.
ALV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.77 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 2.77. This is in the better half of the industry: ALV outperforms 65.43% 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.
With a Debt to FCF ratio value of 4.45, ALV perfoms like the industry average, outperforming 41.98% 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 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.77 |
ROIC/WACC2.66
WACC6.6%
2.3 Liquidity
ALV has a Current Ratio of 0.97. This is a bad value and indicates that ALV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.97, ALV is not doing good in the industry: 93.83% of the companies in the same industry are doing better.
ALV has a Quick Ratio of 0.97. 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 0.73, ALV is doing worse than 90.12% 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%.
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 -2.29% in the last 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
ALV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.28% yearly.
Based on estimates for the next years, ALV will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y5.94%
EPS Next 2Y12.01%
EPS Next 3Y12.89%
EPS Next 5Y11.28%
Revenue Next Year-1%
Revenue Next 2Y1.82%
Revenue Next 3Y3.09%
Revenue Next 5Y3.18%
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
The Price/Earnings ratio is 10.09, which indicates a very decent valuation of ALV.
Compared to the rest of the industry, the Price/Earnings ratio of ALV indicates a somewhat cheap valuation: ALV is cheaper than 61.73% of the companies listed in the same industry.
ALV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.33.
With a Price/Forward Earnings ratio of 8.59, the valuation of ALV can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALV is valued a bit cheaper than 61.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. ALV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA is on the same level as the industry average.
ALV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.69 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ALV may justify a higher PE ratio.
ALV's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)1.29
EPS Next 2Y12.01%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 3.27%.
ALV's Dividend Yield is comparable with the industry average which is at 4.67.
Compared to an average S&P500 Dividend Yield of 2.51, ALV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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
31.63% of the earnings are spent on dividend by ALV. This is a low number and sustainable payout ratio.
The dividend of ALV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.63%
EPS Next 2Y12.01%
EPS Next 3Y12.89%
NYSE:ALV (4/23/2025, 11:54:58 AM)
89.89
+1.5 (+1.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners74.9%
Inst Owner Change0.06%
Ins Owners0.18%
Ins Owner Change6.58%
Market Cap6.95B
Analysts74.4
Price Target115.58 (28.58%)
Short Float %2.63%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)0.02%
PT rev (3m)-3.42%
EPS NQ rev (1m)-5.44%
EPS NQ rev (3m)-14.25%
EPS NY rev (1m)-6.31%
EPS NY rev (3m)-13.5%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-5.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 8.59 | ||
| P/S | 0.67 | ||
| P/FCF | 14.69 | ||
| P/OCF | 6.85 | ||
| P/B | 2.96 | ||
| P/tB | 7.16 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)8.91
EY9.91%
EPS(NY)10.46
Fwd EY11.64%
FCF(TTM)6.12
FCFY6.81%
OCF(TTM)13.12
OCFY14.59%
SpS133.93
BVpS30.41
TBVpS12.56
PEG (NY)1.7
PEG (5Y)1.29
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 | 2.77 |
F-Score8
WACC6.6%
ROIC/WACC2.66
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 Y5.94%
EPS Next 2Y12.01%
EPS Next 3Y12.89%
EPS Next 5Y11.28%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-1.41%
Revenue Next Year-1%
Revenue Next 2Y1.82%
Revenue Next 3Y3.09%
Revenue Next 5Y3.18%
EBIT growth 1Y8.23%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year48.74%
EBIT Next 3Y21.3%
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%