VOLVO AB-B SHS (1VOLVB.MI) Stock Fundamental Analysis
BIT:1VOLVB - Euronext Milan - SE0000115446 - Common Stock - Currency: EUR
Taking everything into account, 1VOLVB scores 5 out of 10 in our fundamental rating. 1VOLVB was compared to 111 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. Finally 1VOLVB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1VOLVB was profitable.
In the past year 1VOLVB had a positive cash flow from operations.
Each year in the past 5 years 1VOLVB has been profitable.
In the past 5 years 1VOLVB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.72%, 1VOLVB belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
1VOLVB has a Return On Equity of 23.56%. This is amongst the best in the industry. 1VOLVB outperforms 90.99% of its industry peers.
1VOLVB has a better Return On Invested Capital (11.31%) than 83.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1VOLVB is above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 23.56% | ||
| ROIC | 11.31% |
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
1VOLVB has a better Profit Margin (8.93%) than 84.68% of its industry peers.
1VOLVB's Profit Margin has improved in the last couple of years.
The Operating Margin of 1VOLVB (12.33%) is better than 82.88% of its industry peers.
In the last couple of years the Operating Margin of 1VOLVB has grown nicely.
The Gross Margin of 1VOLVB (26.71%) is worse than 70.27% of its industry peers.
In the last couple of years the Gross Margin of 1VOLVB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.33% | ||
| PM (TTM) | 8.93% | ||
| GM | 26.71% |
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.
The number of shares outstanding for 1VOLVB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1VOLVB has about the same amount of shares outstanding.
The debt/assets ratio for 1VOLVB is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of 1VOLVB is 10.76, which is on the high side as it means it would take 1VOLVB, 10.76 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.76, 1VOLVB is not doing good in the industry: 63.06% of the companies in the same industry are doing better.
1VOLVB has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1VOLVB is somewhat dependend on debt financing.
1VOLVB has a worse Debt to Equity ratio (0.80) than 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 10.76 | ||
| Altman-Z | N/A |
ROIC/WACC2.16
WACC5.23%
2.3 Liquidity
1VOLVB has a Current Ratio of 1.32. This is a normal value and indicates that 1VOLVB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.32, 1VOLVB is doing worse than 63.06% of the companies in the same industry.
1VOLVB has a Quick Ratio of 1.04. This is a normal value and indicates that 1VOLVB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.04, 1VOLVB is in line with its industry, outperforming 51.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
1VOLVB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.68%.
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 -6.35% in the past year.
Measured over the past years, 1VOLVB shows a small growth in Revenue. The Revenue has been growing by 4.05% on average per year.
EPS 1Y (TTM)-23.68%
EPS 3Y17.39%
EPS 5Y8.01%
EPS Q2Q%-29.77%
Revenue 1Y (TTM)-6.35%
Revenue growth 3Y12.28%
Revenue growth 5Y4.05%
Sales Q2Q%-7.15%
3.2 Future
Based on estimates for the next years, 1VOLVB will show a decrease in Earnings Per Share. The EPS will decrease by -0.34% on average per year.
Based on estimates for the next years, 1VOLVB will show a small growth in Revenue. The Revenue will grow by 2.21% on average per year.
EPS Next Y-5.04%
EPS Next 2Y2.16%
EPS Next 3Y2.99%
EPS Next 5Y-0.34%
Revenue Next Year-3.37%
Revenue Next 2Y0.82%
Revenue Next 3Y1.91%
Revenue Next 5Y2.21%
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
Based on the Price/Earnings ratio of 11.72, the valuation of 1VOLVB can be described as reasonable.
78.38% of the companies in the same industry are more expensive than 1VOLVB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1VOLVB to the average of the S&P500 Index (26.25), we can say 1VOLVB is valued rather cheaply.
1VOLVB is valuated reasonably with a Price/Forward Earnings ratio of 10.30.
69.37% of the companies in the same industry are more expensive than 1VOLVB, based on the Price/Forward Earnings ratio.
1VOLVB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1VOLVB.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1VOLVB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.92 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
1VOLVB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y2.16%
EPS Next 3Y2.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.92%, 1VOLVB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.21, 1VOLVB pays a better dividend. On top of this 1VOLVB pays more dividend than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1VOLVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
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
79.23% of the earnings are spent on dividend by 1VOLVB. 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.
DP79.23%
EPS Next 2Y2.16%
EPS Next 3Y2.99%
BIT:1VOLVB (5/30/2025, 7:00:00 PM)
24.5
+0.17 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners58.26%
Inst Owner ChangeN/A
Ins Owners3.11%
Ins Owner ChangeN/A
Market Cap49.82B
Analysts72.86
Price Target28.75 (17.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
Yearly Dividend1.66
Dividend Growth(5Y)12.47%
DP79.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.56%
Min EPS beat(2)-13.23%
Max EPS beat(2)-3.89%
EPS beat(4)1
Avg EPS beat(4)-4.48%
Min EPS beat(4)-13.23%
Max EPS beat(4)11.98%
EPS beat(8)5
Avg EPS beat(8)5.79%
EPS beat(12)7
Avg EPS beat(12)5.17%
EPS beat(16)11
Avg EPS beat(16)7.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)3.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)3.23%
Revenue beat(8)6
Avg Revenue beat(8)1.65%
Revenue beat(12)10
Avg Revenue beat(12)4.17%
Revenue beat(16)13
Avg Revenue beat(16)4.08%
PT rev (1m)2.08%
PT rev (3m)2.08%
EPS NQ rev (1m)-15.47%
EPS NQ rev (3m)-15.47%
EPS NY rev (1m)-5.86%
EPS NY rev (3m)-5.86%
Revenue NQ rev (1m)-7.43%
Revenue NQ rev (3m)-7.43%
Revenue NY rev (1m)-3.8%
Revenue NY rev (3m)-3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 10.3 | ||
| P/S | 1.05 | ||
| P/FCF | 22.92 | ||
| P/OCF | 12.21 | ||
| P/B | 2.76 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)2.09
EY8.53%
EPS(NY)2.38
Fwd EY9.71%
FCF(TTM)1.07
FCFY4.36%
OCF(TTM)2.01
OCFY8.19%
SpS23.4
BVpS8.87
TBVpS6.89
PEG (NY)N/A
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 23.56% | ||
| ROCE | 15.08% | ||
| ROIC | 11.31% | ||
| ROICexc | 14.41% | ||
| ROICexgc | 16.59% | ||
| OM | 12.33% | ||
| PM (TTM) | 8.93% | ||
| GM | 26.71% | ||
| FCFM | 4.57% |
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%
ROICexcg growth 3Y4.96%
ROICexcg 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-Score3
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 10.76 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 89.85% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 47.8 | ||
| Cash Conversion | 51.07% | ||
| Profit Quality | 51.15% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | N/A |
F-Score3
WACC5.23%
ROIC/WACC2.16
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)-23.68%
EPS 3Y17.39%
EPS 5Y8.01%
EPS Q2Q%-29.77%
EPS Next Y-5.04%
EPS Next 2Y2.16%
EPS Next 3Y2.99%
EPS Next 5Y-0.34%
Revenue 1Y (TTM)-6.35%
Revenue growth 3Y12.28%
Revenue growth 5Y4.05%
Sales Q2Q%-7.15%
Revenue Next Year-3.37%
Revenue Next 2Y0.82%
Revenue Next 3Y1.91%
Revenue Next 5Y2.21%
EBIT growth 1Y-9.36%
EBIT growth 3Y17.96%
EBIT growth 5Y8.52%
EBIT Next Year17.59%
EBIT Next 3Y11.16%
EBIT Next 5Y10.02%
FCF growth 1Y108.77%
FCF growth 3Y33.44%
FCF growth 5Y10.49%
OCF growth 1Y18.57%
OCF growth 3Y11.34%
OCF growth 5Y3.53%