AUTOLIV INC (ALV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALV - US0528001094 - Common Stock
117.38 USD
+2.35 (+2.04%)
117.38 USD
0 (0%)
Overall ALV gets a fundamental rating of 6 out of 10. We evaluated ALV against 82 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALV.
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.
ALV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALV (8.89%) is better than 92.68% of its industry peers.
ALV has a better Return On Equity (29.50%) than 100.00% of its industry peers.
The Return On Invested Capital of ALV (18.53%) is better than 98.78% 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 8.52%.
The 3 year average ROIC (14.52%) for ALV is below the current ROIC(18.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 29.5% | ||
| ROIC | 18.53% |
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 of 7.08%. This is amongst the best in the industry. ALV outperforms 93.90% of its industry peers.
In the last couple of years the Profit Margin of ALV has grown nicely.
ALV has a Operating Margin (10.64%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALV has grown nicely.
With a Gross Margin value of 19.51%, ALV is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
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 | 10.64% | ||
| PM (TTM) | 7.08% | ||
| GM | 19.51% |
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.
The number of shares outstanding for ALV has been reduced compared to 5 years ago.
Compared to 1 year ago, ALV has a worse debt to assets ratio.
2.2 Solvency
ALV has an Altman-Z score of 2.93. 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.
With a decent Altman-Z score value of 2.93, ALV is doing good in the industry, outperforming 64.63% of the companies in the same industry.
The Debt to FCF ratio of ALV is 3.55, which is a good value as it means it would take ALV, 3.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.55, ALV belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that ALV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, ALV is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.93 |
ROIC/WACC2.77
WACC6.69%
2.3 Liquidity
ALV has a Current Ratio of 0.95. 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 Current ratio, with a value of 0.95, ALV is doing worse than 92.68% of the companies in the same industry.
ALV has a Quick Ratio of 0.95. 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 89.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.75% over the past year.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
The Revenue has been growing slightly by 0.84% in the past year.
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)0.84%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%5.91%
3.2 Future
The Earnings Per Share is expected to grow by 13.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y16.03%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y13.64%
Revenue Next Year2.64%
Revenue Next 2Y3.55%
Revenue Next 3Y4.03%
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
Based on the Price/Earnings ratio of 12.06, the valuation of ALV can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ALV indicates a somewhat cheap valuation: ALV is cheaper than 68.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALV to the average of the S&P500 Index (25.98), we can say ALV is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.39, the valuation of ALV can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ALV.
The average S&P500 Price/Forward Earnings ratio is at 35.79. ALV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.39 |
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 a bit cheaper when compared to the industry. ALV is cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 6.67 |
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.
The excellent profitability rating of ALV may justify a higher PE ratio.
ALV's earnings are expected to grow with 16.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)1.54
EPS Next 2Y16.37%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 3.09%.
ALV's Dividend Yield is comparable with the industry average which is at 4.49.
ALV's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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 30.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.32%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
117.38
+2.35 (+2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.41%
Inst Owner Change-3.99%
Ins Owners0.24%
Ins Owner Change-0.33%
Market Cap8.92B
Revenue(TTM)10.61B
Net Income(TTM)752.00M
Analysts78.4
Price Target138.01 (17.58%)
Short Float %2.87%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP30.32%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)1.65%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)11.78%
Min EPS beat(4)1.65%
Max EPS beat(4)27.32%
EPS beat(8)6
Avg EPS beat(8)5.78%
EPS beat(12)8
Avg EPS beat(12)5.3%
EPS beat(16)10
Avg EPS beat(16)9.81%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.04%
Max Revenue beat(2)1.69%
Revenue beat(4)3
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.69%
Revenue beat(8)3
Avg Revenue beat(8)-1.07%
Revenue beat(12)5
Avg Revenue beat(12)-0.62%
Revenue beat(16)6
Avg Revenue beat(16)-1.02%
PT rev (1m)3.91%
PT rev (3m)6.41%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0.1%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.39 | ||
| P/S | 0.84 | ||
| P/FCF | 15.62 | ||
| P/OCF | 8.63 | ||
| P/B | 3.5 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)9.73
EY8.29%
EPS(NY)11.29
Fwd EY9.62%
FCF(TTM)7.52
FCFY6.4%
OCF(TTM)13.6
OCFY11.58%
SpS139.71
BVpS33.55
TBVpS15.3
PEG (NY)0.75
PEG (5Y)1.54
Graham Number85.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 29.5% | ||
| ROCE | 26.12% | ||
| ROIC | 18.53% | ||
| ROICexc | 19.46% | ||
| ROICexgc | 28.23% | ||
| OM | 10.64% | ||
| PM (TTM) | 7.08% | ||
| GM | 19.51% | ||
| FCFM | 5.38% |
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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 116.37% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | 75.93% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.93 |
F-Score7
WACC6.69%
ROIC/WACC2.77
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 Y16.03%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y13.64%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%5.91%
Revenue Next Year2.64%
Revenue Next 2Y3.55%
Revenue Next 3Y4.03%
Revenue Next 5Y3.71%
EBIT growth 1Y16.39%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year50.04%
EBIT Next 3Y21.6%
EBIT Next 5YN/A
FCF growth 1Y38.59%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y3.4%
OCF growth 3Y12.04%
OCF growth 5Y10.57%
AUTOLIV INC / ALV FAQ
Can you provide the ChartMill fundamental rating for AUTOLIV INC?
ChartMill assigns a fundamental rating of 6 / 10 to ALV.
What is the valuation status for ALV stock?
ChartMill assigns a valuation rating of 7 / 10 to AUTOLIV INC (ALV). This can be considered as Undervalued.
Can you provide the profitability details for AUTOLIV INC?
AUTOLIV INC (ALV) has a profitability rating of 8 / 10.
How financially healthy is AUTOLIV INC?
The financial health rating of AUTOLIV INC (ALV) is 4 / 10.
Is the dividend of AUTOLIV INC sustainable?
The dividend rating of AUTOLIV INC (ALV) is 6 / 10 and the dividend payout ratio is 30.32%.