AUTOLIV INC (ALV) Stock Fundamental Analysis
USA - NYSE:ALV - US0528001094 - Common Stock
115.73 USD
-2.46 (-2.08%)
115.73 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALV. ALV was compared to 83 industry peers in the Automobile Components industry. ALV has an excellent profitability rating, but there are some minor 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.
ALV had positive earnings in each of the past 5 years.
ALV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALV (8.44%) is better than 92.77% of its industry peers.
ALV's Return On Equity of 28.96% is amongst the best of the industry. ALV outperforms 100.00% of its industry peers.
The Return On Invested Capital of ALV (17.85%) is better than 97.59% of its industry peers.
ALV had an Average Return On Invested Capital over the past 3 years of 14.52%. This is significantly above the industry average of 8.51%.
The last Return On Invested Capital (17.85%) for ALV is above the 3 year average (14.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 28.96% | ||
| ROIC | 17.85% |
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 (6.83%) is better than 92.77% of its industry peers.
In the last couple of years the Profit Margin of ALV has grown nicely.
ALV has a Operating Margin of 10.27%. This is comparable to the rest of the industry: ALV outperforms 45.78% of its industry peers.
In the last couple of years the Operating Margin of ALV has grown nicely.
ALV has a worse Gross Margin (19.08%) than 72.29% of its industry peers.
ALV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 6.83% | ||
| GM | 19.08% |
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.
Compared to 5 years ago, ALV has less shares outstanding
The debt/assets ratio for ALV is higher compared to a year ago.
2.2 Solvency
ALV has an Altman-Z score of 2.87. This is not the best score and indicates that ALV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, ALV is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
The Debt to FCF ratio of ALV is 4.56, which is a neutral value as it means it would take ALV, 4.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALV (4.56) is better than 84.34% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that ALV is somewhat dependend on debt financing.
ALV has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: ALV underperforms 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | 2.87 |
ROIC/WACC2.67
WACC6.68%
2.3 Liquidity
A Current Ratio of 0.93 indicates that ALV may have some problems paying its short term obligations.
The Current ratio of ALV (0.93) is worse than 91.57% of its industry peers.
ALV has a Quick Ratio of 0.93. This is a bad value and indicates that ALV is not financially healthy enough and could expect problems in meeting its short term obligations.
ALV's Quick ratio of 0.70 is on the low side compared to the rest of the industry. ALV is outperformed by 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ALV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.75%.
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.
ALV shows a decrease in Revenue. In the last year, the revenue decreased by -0.81%.
The Revenue has been growing slightly by 3.98% on average over the past years.
EPS 1Y (TTM)7.75%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%26.09%
Revenue 1Y (TTM)-0.81%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%5.91%
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 13.33% yearly.
Based on estimates for the next years, ALV will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y15.92%
EPS Next 2Y15.79%
EPS Next 3Y15.7%
EPS Next 5Y13.33%
Revenue Next Year2.45%
Revenue Next 2Y3.35%
Revenue Next 3Y3.94%
Revenue Next 5Y3.71%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.89 indicates a reasonable 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 68.67% of the companies listed in the same industry.
ALV is valuated cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.35, the valuation of ALV can be described as very reasonable.
ALV's Price/Forward Earnings ratio is in line with the industry average.
ALV is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.54 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALV has an outstanding 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 15.70% in the coming years.
PEG (NY)0.75
PEG (5Y)1.52
EPS Next 2Y15.79%
EPS Next 3Y15.7%
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 4.48, 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 2.32.
| 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
30.21% 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.
DP30.21%
EPS Next 2Y15.79%
EPS Next 3Y15.7%
115.73
-2.46 (-2.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.41%
Inst Owner Change-0.17%
Ins Owners0.24%
Ins Owner Change2.73%
Market Cap8.79B
Revenue(TTM)10.39B
Net Income(TTM)715.00M
Analysts80
Price Target132.81 (14.76%)
Short Float %2.7%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP30.21%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.48%
Min EPS beat(2)1.65%
Max EPS beat(2)27.32%
EPS beat(4)3
Avg EPS beat(4)7.31%
Min EPS beat(4)-6.44%
Max EPS beat(4)27.32%
EPS beat(8)5
Avg EPS beat(8)2.97%
EPS beat(12)7
Avg EPS beat(12)4%
EPS beat(16)9
Avg EPS beat(16)8.24%
Revenue beat(2)2
Avg Revenue beat(2)1.53%
Min Revenue beat(2)1.38%
Max Revenue beat(2)1.69%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.69%
Revenue beat(8)2
Avg Revenue beat(8)-1.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)5
Avg Revenue beat(16)-1.32%
PT rev (1m)1.89%
PT rev (3m)6.34%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)5.95%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.84 | ||
| P/FCF | 19.54 | ||
| P/OCF | 9.24 | ||
| P/B | 3.56 | ||
| P/tB | 8.14 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)9.73
EY8.41%
EPS(NY)11.18
Fwd EY9.66%
FCF(TTM)5.92
FCFY5.12%
OCF(TTM)12.53
OCFY10.83%
SpS137.73
BVpS32.5
TBVpS14.22
PEG (NY)0.75
PEG (5Y)1.52
Graham Number84.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 28.96% | ||
| ROCE | 25.35% | ||
| ROIC | 17.85% | ||
| ROICexc | 18.82% | ||
| ROICexgc | 27.5% | ||
| OM | 10.27% | ||
| PM (TTM) | 6.83% | ||
| GM | 19.08% | ||
| FCFM | 4.3% |
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%
ROICexgc growth 3Y10.72%
ROICexgc 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-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.56 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 128.72% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.98% | ||
| Profit Quality | 62.94% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.87 |
F-Score7
WACC6.68%
ROIC/WACC2.67
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)7.75%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%26.09%
EPS Next Y15.92%
EPS Next 2Y15.79%
EPS Next 3Y15.7%
EPS Next 5Y13.33%
Revenue 1Y (TTM)-0.81%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%5.91%
Revenue Next Year2.45%
Revenue Next 2Y3.35%
Revenue Next 3Y3.94%
Revenue Next 5Y3.71%
EBIT growth 1Y10.14%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year50.04%
EBIT Next 3Y21.6%
EBIT Next 5YN/A
FCF growth 1Y4.9%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y-7.39%
OCF growth 3Y12.04%
OCF growth 5Y10.57%