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VOLVO AB-B SHS (1VOLVB.MI) Stock Fundamental Analysis

BIT:1VOLVB - Euronext Milan - SE0000115446 - Common Stock - Currency: EUR

24.25  -0.17 (-0.7%)

Fundamental Rating

5

Taking everything into account, 1VOLVB scores 5 out of 10 in our fundamental rating. 1VOLVB was compared to 103 industry peers in the Machinery industry. While 1VOLVB belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1VOLVB is valued correctly, but it does not seem to be growing. 1VOLVB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year 1VOLVB was profitable.
1VOLVB had a positive operating cash flow in the past year.
In the past 5 years 1VOLVB has always been profitable.
Each year in the past 5 years 1VOLVB had a positive operating cash flow.
1VOLVB.MI Yearly Net Income VS EBIT VS OCF VS FCF1VOLVB.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B

1.2 Ratios

1VOLVB's Return On Assets of 7.21% is amongst the best of the industry. 1VOLVB outperforms 85.44% of its industry peers.
With an excellent Return On Equity value of 29.19%, 1VOLVB belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.88%, 1VOLVB belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
Industry RankSector Rank
ROA 7.21%
ROE 29.19%
ROIC 12.88%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1VOLVB.MI Yearly ROA, ROE, ROIC1VOLVB.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

With an excellent Profit Margin value of 9.56%, 1VOLVB belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
In the last couple of years the Profit Margin of 1VOLVB has grown nicely.
1VOLVB has a better Operating Margin (13.05%) than 87.38% of its industry peers.
In the last couple of years the Operating Margin of 1VOLVB has grown nicely.
With a Gross Margin value of 27.34%, 1VOLVB is not doing good in the industry: 64.08% of the companies in the same industry are doing better.
1VOLVB's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.05%
PM (TTM) 9.56%
GM 27.34%
OM growth 3Y4.87%
OM growth 5Y4.19%
PM growth 3Y2.78%
PM growth 5Y2.87%
GM growth 3Y4.28%
GM growth 5Y2.12%
1VOLVB.MI Yearly Profit, Operating, Gross Margins1VOLVB.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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2

2. Health

2.1 Basic Checks

1VOLVB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1VOLVB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
1VOLVB.MI Yearly Shares Outstanding1VOLVB.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
1VOLVB.MI Yearly Total Debt VS Total Assets1VOLVB.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B

2.2 Solvency

The Debt to FCF ratio of 1VOLVB is 9.25, which is on the high side as it means it would take 1VOLVB, 9.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.25, 1VOLVB perfoms like the industry average, outperforming 40.78% of the companies in the same industry.
1VOLVB has a Debt/Equity ratio of 0.88. This is a neutral value indicating 1VOLVB is somewhat dependend on debt financing.
1VOLVB has a worse Debt to Equity ratio (0.88) than 72.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 9.25
Altman-Z N/A
ROIC/WACC2.11
WACC6.1%
1VOLVB.MI Yearly LT Debt VS Equity VS FCF1VOLVB.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B

2.3 Liquidity

A Current Ratio of 1.21 indicates that 1VOLVB should not have too much problems paying its short term obligations.
1VOLVB has a Current ratio of 1.21. This is in the lower half of the industry: 1VOLVB underperforms 74.76% of its industry peers.
A Quick Ratio of 0.92 indicates that 1VOLVB may have some problems paying its short term obligations.
1VOLVB has a Quick ratio of 0.92. This is in the lower half of the industry: 1VOLVB underperforms 61.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 0.92
1VOLVB.MI Yearly Current Assets VS Current Liabilites1VOLVB.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B

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3

3. Growth

3.1 Past

1VOLVB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.58%.
1VOLVB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.10% yearly.
1VOLVB shows a decrease in Revenue. In the last year, the revenue decreased by -4.69%.
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)-16.58%
EPS 3Y17.56%
EPS 5Y8.1%
EPS Q2Q%-19.03%
Revenue 1Y (TTM)-4.69%
Revenue growth 3Y12.28%
Revenue growth 5Y4.05%
Sales Q2Q%-4.58%

3.2 Future

Based on estimates for the next years, 1VOLVB will show a small growth in Earnings Per Share. The EPS will grow by 3.67% on average per year.
1VOLVB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y0.42%
EPS Next 2Y4.71%
EPS Next 3Y0.87%
EPS Next 5Y3.68%
Revenue Next Year0.22%
Revenue Next 2Y2.92%
Revenue Next 3Y0.04%
Revenue Next 5Y2.56%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.
1VOLVB.MI Yearly Revenue VS Estimates1VOLVB.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100B 200B 300B 400B 500B
1VOLVB.MI Yearly EPS VS Estimates1VOLVB.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20 25

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.64, the valuation of 1VOLVB can be described as very reasonable.
Based on the Price/Earnings ratio, 1VOLVB is valued a bit cheaper than 76.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1VOLVB to the average of the S&P500 Index (28.18), we can say 1VOLVB is valued rather cheaply.
The Price/Forward Earnings ratio is 10.61, which indicates a very decent valuation of 1VOLVB.
1VOLVB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1VOLVB is cheaper than 71.84% of the companies in the same industry.
1VOLVB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.64
Fwd PE 10.61
1VOLVB.MI Price Earnings VS Forward Price Earnings1VOLVB.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

1VOLVB's Enterprise Value to EBITDA ratio is in line with the industry average.
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 RankSector Rank
P/FCF 19.22
EV/EBITDA 8.01
1VOLVB.MI Per share data1VOLVB.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1VOLVB may justify a higher PE ratio.
PEG (NY)25.24
PEG (5Y)1.31
EPS Next 2Y4.71%
EPS Next 3Y0.87%

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7

5. Dividend

5.1 Amount

1VOLVB has a Yearly Dividend Yield of 5.90%, which is a nice return.
Compared to an average industry Dividend Yield of 2.96, 1VOLVB pays a better dividend. On top of this 1VOLVB pays more dividend than 98.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, 1VOLVB pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.9%

5.2 History

The dividend of 1VOLVB is nicely growing with an annual growth rate of 26.93%!
Dividend Growth(5Y)26.93%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

1VOLVB pays out 72.64% of its income as dividend. This is not a sustainable payout ratio.
1VOLVB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP72.64%
EPS Next 2Y4.71%
EPS Next 3Y0.87%
1VOLVB.MI Yearly Income VS Free CF VS Dividend1VOLVB.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B 50B
1VOLVB.MI Dividend Payout.1VOLVB.MI Dividend Payout, showing the Payout Ratio.1VOLVB.MI Dividend Payout.PayoutRetained Earnings

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VOLVO AB-B SHS

BIT:1VOLVB (4/29/2025, 7:00:00 PM)

24.25

-0.17 (-0.7%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)01-29 2025-01-29/bmo
Earnings (Next)N/A N/A
Inst Owners57.6%
Inst Owner ChangeN/A
Ins Owners5.57%
Ins Owner ChangeN/A
Market Cap49.31B
Analysts75.56
Price Target28.17 (16.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.9%
Yearly Dividend14
Dividend Growth(5Y)26.93%
DP72.64%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.32%
Min EPS beat(2)-12.79%
Max EPS beat(2)-1.84%
EPS beat(4)2
Avg EPS beat(4)1.27%
Min EPS beat(4)-12.79%
Max EPS beat(4)11.98%
EPS beat(8)6
Avg EPS beat(8)11.57%
EPS beat(12)8
Avg EPS beat(12)9.95%
EPS beat(16)12
Avg EPS beat(16)9.71%
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)5.36%
Revenue beat(4)3
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)5.36%
Revenue beat(8)7
Avg Revenue beat(8)3.25%
Revenue beat(12)11
Avg Revenue beat(12)5.16%
Revenue beat(16)13
Avg Revenue beat(16)4.39%
PT rev (1m)6.7%
PT rev (3m)0.87%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-11.4%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)-8.07%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-3.86%
Valuation
Industry RankSector Rank
PE 10.64
Fwd PE 10.61
P/S 1.02
P/FCF 19.22
P/OCF 11.61
P/B 3.12
P/tB 4.17
EV/EBITDA 8.01
EPS(TTM)2.28
EY9.4%
EPS(NY)2.29
Fwd EY9.42%
FCF(TTM)1.26
FCFY5.2%
OCF(TTM)2.09
OCFY8.61%
SpS23.69
BVpS7.76
TBVpS5.81
PEG (NY)25.24
PEG (5Y)1.31
Profitability
Industry RankSector Rank
ROA 7.21%
ROE 29.19%
ROCE 17.16%
ROIC 12.88%
ROICexc 15.47%
ROICexgc 17.79%
OM 13.05%
PM (TTM) 9.56%
GM 27.34%
FCFM 5.33%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y4.87%
OM growth 5Y4.19%
PM growth 3Y2.78%
PM growth 5Y2.87%
GM growth 3Y4.28%
GM growth 5Y2.12%
F-Score4
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 9.25
Debt/EBITDA 1.66
Cap/Depr 81.54%
Cap/Sales 3.49%
Interest Coverage 55.27
Cash Conversion 50.86%
Profit Quality 55.68%
Current Ratio 1.21
Quick Ratio 0.92
Altman-Z N/A
F-Score4
WACC6.1%
ROIC/WACC2.11
Cap/Depr(3y)113.75%
Cap/Depr(5y)108.4%
Cap/Sales(3y)4.71%
Cap/Sales(5y)5.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.58%
EPS 3Y17.56%
EPS 5Y8.1%
EPS Q2Q%-19.03%
EPS Next Y0.42%
EPS Next 2Y4.71%
EPS Next 3Y0.87%
EPS Next 5Y3.68%
Revenue 1Y (TTM)-4.69%
Revenue growth 3Y12.28%
Revenue growth 5Y4.05%
Sales Q2Q%-4.58%
Revenue Next Year0.22%
Revenue Next 2Y2.92%
Revenue Next 3Y0.04%
Revenue Next 5Y2.56%
EBIT growth 1Y-0.9%
EBIT growth 3Y17.75%
EBIT growth 5Y8.41%
EBIT Next Year24.96%
EBIT Next 3Y6.41%
EBIT Next 5YN/A
FCF growth 1Y1509.95%
FCF growth 3Y33.44%
FCF growth 5Y10.49%
OCF growth 1Y74.11%
OCF growth 3Y11.34%
OCF growth 5Y3.53%