AUTOLIV INC (ALV) Stock Fundamental Analysis
NYSE:ALV - New York Stock Exchange, Inc. - US0528001094 - Common Stock
Overall ALV gets a fundamental rating of 5 out of 10. We evaluated ALV against 83 industry peers in the Automobile Components industry. ALV has an excellent profitability rating, but 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
ALV had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.57%, ALV belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
ALV has a Return On Equity of 27.49%. This is amongst the best in the industry. ALV outperforms 98.80% of its industry peers.
With an excellent Return On Invested Capital value of 15.86%, ALV belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALV is above the industry average of 9.42%.
The last Return On Invested Capital (15.86%) for ALV is above the 3 year average (11.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 27.49% | ||
| ROIC | 15.86% |
ROA(3y)5.7%
ROA(5y)5.24%
ROE(3y)17.26%
ROE(5y)16.29%
ROIC(3y)11.91%
ROIC(5y)10.8%
1.3 Margins
Looking at the Profit Margin, with a value of 5.98%, ALV is in line with its industry, outperforming 40.96% of the companies in the same industry.
In the last couple of years the Profit Margin of ALV has grown nicely.
With a Operating Margin value of 9.22%, ALV perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
In the last couple of years the Operating Margin of ALV has grown nicely.
With a Gross Margin value of 18.12%, ALV is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
ALV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.22% | ||
| PM (TTM) | 5.98% | ||
| GM | 18.12% |
OM growth 3Y18.84%
OM growth 5Y1.73%
PM growth 3Y22.9%
PM growth 5Y16.25%
GM growth 3Y1.26%
GM growth 5Y-2.49%
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.
The number of shares outstanding for ALV has been reduced compared to 1 year ago.
The number of shares outstanding for ALV has been reduced compared to 5 years ago.
The debt/assets ratio for ALV has been reduced compared to a year ago.
2.2 Solvency
ALV has an Altman-Z score of 2.76. 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.
ALV has a Altman-Z score of 2.76. This is in the better half of the industry: ALV outperforms 61.45% of its industry peers.
The Debt to FCF ratio of ALV is 4.47, which is a neutral value as it means it would take ALV, 4.47 years of fcf income to pay off all of its debts.
ALV has a Debt to FCF ratio of 4.47. This is in the lower half of the industry: ALV underperforms 62.65% of its industry peers.
ALV has a Debt/Equity ratio of 0.84. This is a neutral value indicating ALV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, ALV is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 2.76 |
ROIC/WACC2.6
WACC6.09%
2.3 Liquidity
A Current Ratio of 0.96 indicates that ALV may have some problems paying its short term obligations.
ALV has a Current ratio of 0.96. This is amonst the worse of the industry: ALV underperforms 93.98% of its industry peers.
A Quick Ratio of 0.71 indicates that ALV may have some problems paying its short term obligations.
ALV has a Quick ratio of 0.71. This is amonst the worse of the industry: ALV underperforms 92.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.88%, which is quite impressive.
Measured over the past 5 years, ALV shows a small growth in Earnings Per Share. The EPS has been growing by 4.36% on average per year.
ALV shows a small growth in Revenue. In the last year, the Revenue has grown by 4.64%.
The Revenue has been growing slightly by 3.84% on average over the past years.
EPS 1Y (TTM)42.88%
EPS 3Y37.73%
EPS 5Y4.36%
EPS Q2Q%10.84%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.04%
Revenue growth 5Y3.84%
Sales Q2Q%-1.58%
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 9.45% on average per year.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y0.89%
EPS Next 2Y11.41%
EPS Next 3Y13.64%
EPS Next 5Y9.45%
Revenue Next Year0.49%
Revenue Next 2Y2.4%
Revenue Next 3Y3.28%
Revenue Next 5Y2.82%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.09 indicates a reasonable valuation of ALV.
62.65% 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 28.29.
Based on the Price/Forward Earnings ratio of 9.80, the valuation of ALV can be described as reasonable.
61.45% of the companies in the same industry are more expensive than ALV, based on the Price/Forward Earnings ratio.
ALV is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 9.8 |
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.
ALV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALV does not grow enough to justify the current Price/Earnings ratio.
The decent 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 13.64% in the coming years.
PEG (NY)12.52
PEG (5Y)2.55
EPS Next 2Y11.41%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 2.86%.
ALV's Dividend Yield is comparable with the industry average which is at 4.18.
ALV's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of ALV has a limited annual growth rate of 1.61%.
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)1.61%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
34.98% 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.
DP34.98%
EPS Next 2Y11.41%
EPS Next 3Y13.64%
AUTOLIV INC
NYSE:ALV (1/22/2025, 11:40:56 AM)
100.12
+0.74 (+0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners75.46%
Inst Owner Change-1%
Ins Owners0.17%
Ins Owner Change0.09%
Market Cap7.81B
Analysts76.8
Price Target119.68 (19.54%)
Short Float %3.15%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.67
Dividend Growth(5Y)1.61%
DP34.98%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.72%
Min EPS beat(2)-17%
Max EPS beat(2)-6.44%
EPS beat(4)2
Avg EPS beat(4)-0.23%
Min EPS beat(4)-17%
Max EPS beat(4)12.67%
EPS beat(8)4
Avg EPS beat(8)2.06%
EPS beat(12)6
Avg EPS beat(12)9.15%
EPS beat(16)8
Avg EPS beat(16)7.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-5.72%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-5.72%
Max Revenue beat(4)-0.12%
Revenue beat(8)2
Avg Revenue beat(8)-0.79%
Revenue beat(12)3
Avg Revenue beat(12)-1.26%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)-0.58%
PT rev (3m)-4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.85%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.74 | ||
| P/FCF | 15.81 | ||
| P/OCF | 7.19 | ||
| P/B | 3.41 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)9.03
EY9.02%
EPS(NY)10.21
Fwd EY10.2%
FCF(TTM)6.33
FCFY6.32%
OCF(TTM)13.93
OCFY13.92%
SpS134.93
BVpS29.33
TBVpS11.56
PEG (NY)12.52
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 27.49% | ||
| ROCE | 22.71% | ||
| ROIC | 15.86% | ||
| ROICexc | 17.43% | ||
| ROICexgc | 26.07% | ||
| OM | 9.22% | ||
| PM (TTM) | 5.98% | ||
| GM | 18.12% | ||
| FCFM | 4.69% |
ROA(3y)5.7%
ROA(5y)5.24%
ROE(3y)17.26%
ROE(5y)16.29%
ROIC(3y)11.91%
ROIC(5y)10.8%
ROICexc(3y)13.99%
ROICexc(5y)12.68%
ROICexgc(3y)21.93%
ROICexgc(5y)19.89%
ROCE(3y)16.42%
ROCE(5y)14.71%
ROICexcg growth 3Y29.1%
ROICexcg growth 5Y-2.08%
ROICexc growth 3Y30.82%
ROICexc growth 5Y1.07%
OM growth 3Y18.84%
OM growth 5Y1.73%
PM growth 3Y22.9%
PM growth 5Y16.25%
GM growth 3Y1.26%
GM growth 5Y-2.49%
F-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.47 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 153.63% | ||
| Cap/Sales | 5.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 78.54% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.76 |
F-Score7
WACC6.09%
ROIC/WACC2.6
Cap/Depr(3y)143%
Cap/Depr(5y)131.9%
Cap/Sales(3y)5.88%
Cap/Sales(5y)5.58%
Profit Quality(3y)60.78%
Profit Quality(5y)97.37%
High Growth Momentum
Growth
EPS 1Y (TTM)42.88%
EPS 3Y37.73%
EPS 5Y4.36%
EPS Q2Q%10.84%
EPS Next Y0.89%
EPS Next 2Y11.41%
EPS Next 3Y13.64%
EPS Next 5Y9.45%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.04%
Revenue growth 5Y3.84%
Sales Q2Q%-1.58%
Revenue Next Year0.49%
Revenue Next 2Y2.4%
Revenue Next 3Y3.28%
Revenue Next 5Y2.82%
EBIT growth 1Y22.63%
EBIT growth 3Y33.15%
EBIT growth 5Y5.63%
EBIT Next Year55.33%
EBIT Next 3Y24.72%
EBIT Next 5Y22.57%
FCF growth 1Y7157.14%
FCF growth 3Y-6.74%
FCF growth 5Y68.04%
OCF growth 1Y92.05%
OCF growth 3Y5.01%
OCF growth 5Y10.73%