VOLVO AB-B SHS (1VOLVB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1VOLVB - SE0000115446 - Common Stock
26.94 EUR
+3.1 (+13%)
1VOLVB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 109 industry peers in the Machinery industry. While 1VOLVB has a great profitability rating, there are quite some concerns on its financial health. 1VOLVB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1VOLVB was profitable.
1VOLVB had a positive operating cash flow in the past year.
Each year in the past 5 years 1VOLVB has been profitable.
Each year in the past 5 years 1VOLVB had a positive operating cash flow.
1.2 Ratios
1VOLVB has a Return On Assets of 5.52%. This is in the better half of the industry: 1VOLVB outperforms 74.31% of its industry peers.
The Return On Equity of 1VOLVB (20.71%) is better than 86.24% of its industry peers.
The Return On Invested Capital of 1VOLVB (10.42%) is better than 81.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1VOLVB is above the industry average of 8.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.52% | ||
| ROE | 20.71% | ||
| ROIC | 10.42% |
ROA(3y)6.55%
ROA(5y)5.96%
ROE(3y)24.7%
ROE(5y)22.13%
ROIC(3y)12.54%
ROIC(5y)10.96%
1.3 Margins
Looking at the Profit Margin, with a value of 7.21%, 1VOLVB is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
In the last couple of years the Profit Margin of 1VOLVB has grown nicely.
Looking at the Operating Margin, with a value of 10.51%, 1VOLVB is in the better half of the industry, outperforming 71.56% of the companies in the same industry.
In the last couple of years the Operating Margin of 1VOLVB has grown nicely.
1VOLVB has a Gross Margin of 24.57%. This is amonst the worse of the industry: 1VOLVB underperforms 80.73% of its industry peers.
1VOLVB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 7.21% | ||
| GM | 24.57% |
OM growth 3Y5.06%
OM growth 5Y4.3%
PM growth 3Y2.78%
PM growth 5Y2.87%
GM growth 3Y4.28%
GM growth 5Y2.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1VOLVB is creating value.
Compared to 1 year ago, 1VOLVB has about the same amount of shares outstanding.
The number of shares outstanding for 1VOLVB remains at a similar level compared to 5 years ago.
1VOLVB has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1VOLVB is 14.29, which is on the high side as it means it would take 1VOLVB, 14.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.29, 1VOLVB is doing worse than 70.64% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that 1VOLVB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, 1VOLVB is not doing good in the industry: 66.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 14.29 | ||
| Altman-Z | N/A |
ROIC/WACC3.6
WACC2.89%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1VOLVB should not have too much problems paying its short term obligations.
1VOLVB's Current ratio of 1.12 is on the low side compared to the rest of the industry. 1VOLVB is outperformed by 75.23% of its industry peers.
A Quick Ratio of 0.85 indicates that 1VOLVB may have some problems paying its short term obligations.
1VOLVB has a Quick ratio of 0.85. This is in the lower half of the industry: 1VOLVB underperforms 61.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
1VOLVB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.14%.
The Earnings Per Share has been growing by 8.01% on average over the past years. This is quite good.
The Revenue has decreased by -7.96% in the past year.
1VOLVB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
EPS 1Y (TTM)-33.14%
EPS 3Y17.39%
EPS 5Y8.01%
EPS Q2Q%-24.75%
Revenue 1Y (TTM)-7.96%
Revenue growth 3Y12.28%
Revenue growth 5Y4.05%
Sales Q2Q%-5.37%
3.2 Future
1VOLVB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.21% yearly.
The Revenue is expected to grow by 1.69% on average over the next years.
EPS Next Y-27.84%
EPS Next 2Y-8.59%
EPS Next 3Y-1.43%
EPS Next 5Y-0.21%
Revenue Next Year-8.83%
Revenue Next 2Y-3.33%
Revenue Next 3Y0.04%
Revenue Next 5Y1.69%
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 decreasing.
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
With a Price/Earnings ratio of 16.63, 1VOLVB is valued correctly.
Based on the Price/Earnings ratio, 1VOLVB is valued a bit cheaper than the industry average as 75.23% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1VOLVB to the average of the S&P500 Index (27.17), we can say 1VOLVB is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.08 indicates a correct valuation of 1VOLVB.
Based on the Price/Forward Earnings ratio, 1VOLVB is valued a bit cheaper than 65.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1VOLVB to the average of the S&P500 Index (23.79), we can say 1VOLVB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
1VOLVB's Enterprise Value to EBITDA is on the same level as the industry average.
1VOLVB's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1VOLVB is more expensive than 68.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.77 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
1VOLVB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y-8.59%
EPS Next 3Y-1.43%
5. Dividend
5.1 Amount
1VOLVB has a Yearly Dividend Yield of 6.25%, which is a nice return.
Compared to an average industry Dividend Yield of 1.55, 1VOLVB pays a better dividend. On top of this 1VOLVB pays more dividend than 98.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, 1VOLVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
5.2 History
The dividend of 1VOLVB is nicely growing with an annual growth rate of 12.47%!
Dividend Growth(5Y)12.47%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1VOLVB pays out 105.72% of its income as dividend. This is not a sustainable payout ratio.
1VOLVB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP105.72%
EPS Next 2Y-8.59%
EPS Next 3Y-1.43%
BIT:1VOLVB (12/22/2025, 7:00:00 PM)
26.94
+3.1 (+13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners61.26%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap54.78B
Revenue(TTM)493.79B
Net Income(TTM)35.58B
Analysts72.31
Price Target27.25 (1.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend1.66
Dividend Growth(5Y)12.47%
DP105.72%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.8%
Min EPS beat(2)-28.17%
Max EPS beat(2)-15.44%
EPS beat(4)0
Avg EPS beat(4)-15.18%
Min EPS beat(4)-28.17%
Max EPS beat(4)-3.89%
EPS beat(8)3
Avg EPS beat(8)-6.63%
EPS beat(12)6
Avg EPS beat(12)1.11%
EPS beat(16)9
Avg EPS beat(16)4.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)-1.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)3.18%
Revenue beat(8)4
Avg Revenue beat(8)0.56%
Revenue beat(12)8
Avg Revenue beat(12)2.45%
Revenue beat(16)12
Avg Revenue beat(16)3.92%
PT rev (1m)3.07%
PT rev (3m)-0.66%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)-14.15%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-9.79%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-6.13%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.08 | ||
| P/S | 1.2 | ||
| P/FCF | 33.77 | ||
| P/OCF | 14.03 | ||
| P/B | 3.45 | ||
| P/tB | 4.68 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)1.62
EY6.01%
EPS(NY)1.91
Fwd EY7.1%
FCF(TTM)0.8
FCFY2.96%
OCF(TTM)1.92
OCFY7.13%
SpS22.44
BVpS7.81
TBVpS5.75
PEG (NY)N/A
PEG (5Y)2.08
Graham Number16.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.52% | ||
| ROE | 20.71% | ||
| ROCE | 13.88% | ||
| ROIC | 10.42% | ||
| ROICexc | 12.29% | ||
| ROICexgc | 14.34% | ||
| OM | 10.51% | ||
| PM (TTM) | 7.21% | ||
| GM | 24.57% | ||
| FCFM | 3.55% |
ROA(3y)6.55%
ROA(5y)5.96%
ROE(3y)24.7%
ROE(5y)22.13%
ROIC(3y)12.54%
ROIC(5y)10.96%
ROICexc(3y)15.89%
ROICexc(5y)14.02%
ROICexgc(3y)18.39%
ROICexgc(5y)16.32%
ROCE(3y)16.71%
ROCE(5y)14.61%
ROICexgc growth 3Y4.96%
ROICexgc growth 5Y1.75%
ROICexc growth 3Y5.79%
ROICexc growth 5Y2.12%
OM growth 3Y5.06%
OM growth 5Y4.3%
PM growth 3Y2.78%
PM growth 5Y2.87%
GM growth 3Y4.28%
GM growth 5Y2.12%
F-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 14.29 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 103.88% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 33.43 | ||
| Cash Conversion | 55.83% | ||
| Profit Quality | 49.33% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | N/A |
F-Score4
WACC2.89%
ROIC/WACC3.6
Cap/Depr(3y)97.63%
Cap/Depr(5y)98.73%
Cap/Sales(3y)4.09%
Cap/Sales(5y)4.65%
Profit Quality(3y)28.1%
Profit Quality(5y)37.82%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.14%
EPS 3Y17.39%
EPS 5Y8.01%
EPS Q2Q%-24.75%
EPS Next Y-27.84%
EPS Next 2Y-8.59%
EPS Next 3Y-1.43%
EPS Next 5Y-0.21%
Revenue 1Y (TTM)-7.96%
Revenue growth 3Y12.28%
Revenue growth 5Y4.05%
Sales Q2Q%-5.37%
Revenue Next Year-8.83%
Revenue Next 2Y-3.33%
Revenue Next 3Y0.04%
Revenue Next 5Y1.69%
EBIT growth 1Y-27.81%
EBIT growth 3Y17.96%
EBIT growth 5Y8.52%
EBIT Next Year3.81%
EBIT Next 3Y7.79%
EBIT Next 5Y9.78%
FCF growth 1Y696.43%
FCF growth 3Y33.44%
FCF growth 5Y10.49%
OCF growth 1Y73.81%
OCF growth 3Y11.34%
OCF growth 5Y3.53%
VOLVO AB-B SHS / 1VOLVB.MI FAQ
Can you provide the ChartMill fundamental rating for VOLVO AB-B SHS?
ChartMill assigns a fundamental rating of 4 / 10 to 1VOLVB.MI.
What is the valuation status of VOLVO AB-B SHS (1VOLVB.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to VOLVO AB-B SHS (1VOLVB.MI). This can be considered as Fairly Valued.
What is the profitability of 1VOLVB stock?
VOLVO AB-B SHS (1VOLVB.MI) has a profitability rating of 7 / 10.
What is the valuation of VOLVO AB-B SHS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VOLVO AB-B SHS (1VOLVB.MI) is 16.63 and the Price/Book (PB) ratio is 3.45.
How sustainable is the dividend of VOLVO AB-B SHS (1VOLVB.MI) stock?
The dividend rating of VOLVO AB-B SHS (1VOLVB.MI) is 6 / 10 and the dividend payout ratio is 105.72%.