AUTOLIV INC (ALV)
US0528001094 - Common Stock
ALV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. While ALV has a great profitability rating, there are some minor 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.
In the past 5 years ALV has always been profitable.
Each year in the past 5 years ALV had a positive operating cash flow.
1.2 Ratios
ALV has a Return On Assets of 5.86%. This is amongst the best in the industry. ALV outperforms 85.71% of its industry peers.
ALV has a Return On Equity of 19.08%. This is amongst the best in the industry. ALV outperforms 88.10% of its industry peers.
The Return On Invested Capital of ALV (14.95%) is better than 88.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALV is above the industry average of 9.29%.
The 3 year average ROIC (11.91%) for ALV is below the current ROIC(14.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 19.08% | ||
| ROIC | 14.95% |
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
ALV's Profit Margin of 4.66% is fine compared to the rest of the industry. ALV outperforms 76.19% of its industry peers.
ALV's Profit Margin has improved in the last couple of years.
ALV has a Operating Margin of 8.61%. This is in the better half of the industry: ALV outperforms 71.43% of its industry peers.
ALV's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.38%, ALV perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
ALV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.61% | ||
| PM (TTM) | 4.66% | ||
| GM | 17.38% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALV is creating value.
The number of shares outstanding for ALV has been reduced compared to 1 year ago.
ALV has less shares outstanding than it did 5 years ago.
ALV has a better debt/assets ratio than last year.
2.2 Solvency
ALV has an Altman-Z score of 2.98. 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's Altman-Z score of 2.98 is fine compared to the rest of the industry. ALV outperforms 69.05% of its industry peers.
The Debt to FCF ratio of ALV is 4.54, which is a neutral value as it means it would take ALV, 4.54 years of fcf income to pay off all of its debts.
ALV's Debt to FCF ratio of 4.54 is fine compared to the rest of the industry. ALV outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ALV is somewhat dependend on debt financing.
ALV has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: ALV underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.98 |
ROIC/WACC2.32
WACC6.44%
2.3 Liquidity
ALV has a Current Ratio of 0.98. 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 has a worse Current ratio (0.98) than 92.86% of its industry peers.
ALV has a Quick Ratio of 0.98. This is a bad value and indicates that ALV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ALV (0.73) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.62%, 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.
The Revenue has grown by 18.47% in the past year. This is quite good.
The Revenue has been growing slightly by 3.84% on average over the past years.
EPS 1Y (TTM)86.62%
EPS 3Y37.73%
EPS 5Y4.36%
EPS growth Q2Q104.37%
Revenue 1Y (TTM)18.47%
Revenue growth 3Y12.04%
Revenue growth 5Y3.84%
Revenue growth Q2Q17.82%
3.2 Future
ALV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.61% yearly.
The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y18.97%
EPS Next 2Y20.39%
EPS Next 3Y19.12%
EPS Next 5Y14.61%
Revenue Next Year6.08%
Revenue Next 2Y5.79%
Revenue Next 3Y5.44%
Revenue Next 5Y5.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.36, which indicates a correct valuation of ALV.
Based on the Price/Earnings ratio, ALV is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
ALV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
A Price/Forward Earnings ratio of 12.07 indicates a correct valuation of ALV.
Based on the Price/Forward Earnings ratio, ALV is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ALV to the average of the S&P500 Index (21.40), we can say ALV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA ratio is in line with the industry average.
ALV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.45 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
ALV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALV has an outstanding profitability rating, which may justify a higher PE ratio.
ALV's earnings are expected to grow with 19.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)3.3
EPS Next 2Y20.39%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, ALV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.81, ALV pays a better dividend. On top of this ALV pays more dividend than 85.71% of the companies listed in the same industry.
ALV's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of ALV has a limited annual growth rate of 1.61%.
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)1.61%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ALV pays out 46.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ALV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.11%
EPS Next 2Y20.39%
EPS Next 3Y19.12%
AUTOLIV INC
NYSE:ALV (4/23/2024, 10:27:06 AM)
118.16
+0.88 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.76
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 19.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.61% | ||
| PM (TTM) | 4.66% | ||
| GM | 17.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)86.62%
EPS 3Y37.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.47%
Revenue growth 3Y12.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y