AUTOLIV INC (ALV) Stock Fundamental Analysis
USA - NYSE:ALV - US0528001094 - Common Stock
124.93 USD
-0.09 (-0.07%)
125.82 USD
+0.89 (+0.71%)
We assign a fundamental rating of 5 out of 10 to ALV. ALV was compared to 80 industry peers in the Automobile Components industry. While ALV belongs to the best of the industry regarding profitability, 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
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.
ALV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALV's Return On Assets of 8.44% is amongst the best of the industry. ALV outperforms 93.75% of its industry peers.
With an excellent Return On Equity value of 28.96%, ALV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.85%, ALV belongs to the best of the industry, outperforming 97.50% 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 8.51%.
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
ALV's Profit Margin of 6.83% is amongst the best of the industry. ALV outperforms 92.50% of its industry peers.
ALV's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.27%, ALV is in line with its industry, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Operating Margin of ALV has grown nicely.
Looking at the Gross Margin, with a value of 19.08%, ALV is doing worse than 75.00% of the companies in the same industry.
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
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
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 2.92 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 2.92. This is in the better half of the industry: ALV outperforms 66.25% of its industry peers.
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 83.75% of its industry peers.
ALV has a Debt/Equity ratio of 0.72. This is a neutral value indicating ALV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, ALV is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | 2.92 |
ROIC/WACC2.73
WACC6.54%
2.3 Liquidity
A Current Ratio of 0.93 indicates that ALV may have some problems paying its short term obligations.
With a Current ratio value of 0.93, ALV is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
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 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.52% over the past year.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
ALV shows a decrease in Revenue. In the last year, the revenue decreased by -0.98%.
ALV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.98% yearly.
EPS 1Y (TTM)4.52%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%18.18%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%4.18%
3.2 Future
The Earnings Per Share is expected to grow by 13.33% on average over the next years. This is quite good.
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 Y13.3%
EPS Next 2Y14.75%
EPS Next 3Y15.39%
EPS Next 5Y13.33%
Revenue Next Year1.65%
Revenue Next 2Y2.85%
Revenue Next 3Y3.7%
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.
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 13.51, ALV is valued correctly.
67.50% of the companies in the same industry are more expensive than ALV, based on the Price/Earnings ratio.
ALV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
ALV is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
ALV's Price/Forward Earnings is on the same level as the industry average.
ALV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALV is on the same level as its industry peers.
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 | 21.15 | ||
| EV/EBITDA | 7.46 |
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.
A more expensive valuation may be justified as ALV's earnings are expected to grow with 15.39% in the coming years.
PEG (NY)1.02
PEG (5Y)1.72
EPS Next 2Y14.75%
EPS Next 3Y15.39%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 2.66%.
ALV's Dividend Yield is comparable with the industry average which is at 3.89.
Compared to an average S&P500 Dividend Yield of 2.38, ALV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 30.21% 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.
DP30.21%
EPS Next 2Y14.75%
EPS Next 3Y15.39%
124.93
-0.09 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner Change-1.59%
Ins Owners0.24%
Ins Owner Change3.13%
Market Cap9.52B
Analysts80
Price Target130.34 (4.33%)
Short Float %2.67%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)0.5%
PT rev (3m)15.51%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)5.99%
EPS NY rev (3m)6.79%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)4.91%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)5.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.91 | ||
| P/FCF | 21.15 | ||
| P/OCF | 10 | ||
| P/B | 3.85 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 7.46 |
EPS(TTM)9.25
EY7.4%
EPS(NY)10.98
Fwd EY8.79%
FCF(TTM)5.91
FCFY4.73%
OCF(TTM)12.5
OCFY10%
SpS137.36
BVpS32.41
TBVpS14.18
PEG (NY)1.02
PEG (5Y)1.72
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%
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-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 | 2.92 |
F-Score7
WACC6.54%
ROIC/WACC2.73
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)4.52%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%18.18%
EPS Next Y13.3%
EPS Next 2Y14.75%
EPS Next 3Y15.39%
EPS Next 5Y13.33%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%4.18%
Revenue Next Year1.65%
Revenue Next 2Y2.85%
Revenue Next 3Y3.7%
Revenue Next 5Y3.71%
EBIT growth 1Y10.14%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year50.14%
EBIT Next 3Y21.94%
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%