AUTOLIV INC (ALV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALV - US0528001094 - Common Stock
127.17 USD
+0.23 (+0.18%)
We assign a fundamental rating of 6 out of 10 to ALV. ALV was compared to 42 industry peers in the Automobile Components industry. ALV scores excellent on profitability, but there are some minor concerns on its financial health. ALV is not valued too expensively and it also shows a decent growth rate. Finally ALV also has an excellent dividend rating. With these ratings, ALV could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year ALV was profitable.
- In the past year ALV had a positive cash flow from operations.
- ALV had positive earnings in each of the past 5 years.
- Each year in the past 5 years ALV had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ALV (8.89%) is better than 85.71% of its industry peers.
- Looking at the Return On Equity, with a value of 29.50%, ALV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 18.53%, ALV belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
- ALV had an Average Return On Invested Capital over the past 3 years of 14.52%. This is significantly above the industry average of 9.10%.
- 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
- The Profit Margin of ALV (7.08%) is better than 88.10% of its industry peers.
- In the last couple of years the Profit Margin of ALV has grown nicely.
- The Operating Margin of ALV (10.64%) is better than 88.10% of its industry peers.
- ALV's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 19.51%, ALV is in line with its industry, outperforming 50.00% of the companies in the same industry.
- ALV's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALV is creating value.
- Compared to 1 year ago, ALV has less shares outstanding
- ALV has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ALV has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.01 indicates that ALV is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.01, ALV is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ALV has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as ALV would need 3.55 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.55, ALV is in the better half of the industry, outperforming 76.19% 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 perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 3.01 |
ROIC/WACC2.76
WACC6.72%
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.
- ALV has a Current ratio of 0.95. This is amonst the worse of the industry: ALV underperforms 88.10% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 0.70, ALV is doing worse than 83.33% of the companies in the same industry.
| 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.
- Measured over the past 5 years, ALV shows a small growth in Earnings Per Share. The EPS has been growing by 7.83% on average per year.
- Looking at the last year, ALV shows a small growth in Revenue. The Revenue has grown by 0.84% in the last year.
- Measured over the past years, ALV shows a small growth in Revenue. The Revenue has been growing by 3.98% on average per year.
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
- Based on estimates for the next years, ALV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.64% on average per year.
- ALV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y16.02%
EPS Next 2Y15.8%
EPS Next 3Y15.59%
EPS Next 5Y13.64%
Revenue Next Year2.74%
Revenue Next 2Y3.36%
Revenue Next 3Y3.78%
Revenue Next 5Y3.67%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.07, ALV is valued correctly.
- Based on the Price/Earnings ratio, ALV is valued a bit cheaper than 76.19% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ALV is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.37, which indicates a very decent valuation of ALV.
- Based on the Price/Forward Earnings ratio, ALV is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALV is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.72 | ||
| EV/EBITDA | 7.19 |
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.
- A more expensive valuation may be justified as ALV's earnings are expected to grow with 15.59% in the coming years.
PEG (NY)0.82
PEG (5Y)1.67
EPS Next 2Y15.8%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
- ALV has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.61, ALV pays a better dividend. On top of this ALV pays more dividend than 92.86% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ALV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
- The dividend of ALV has a limited annual growth rate of 1.88%.
- ALV has been paying a dividend for at least 10 years, so it has 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
- 30.32% of the earnings are spent on dividend by ALV. This is a low number and sustainable payout ratio.
- The dividend of ALV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.32%
EPS Next 2Y15.8%
EPS Next 3Y15.59%
AUTOLIV INC / ALV FAQ
Can you provide the ChartMill fundamental rating for AUTOLIV INC?
ChartMill assigns a fundamental rating of 6 / 10 to ALV.
Can you provide the valuation status for AUTOLIV INC?
ChartMill assigns a valuation rating of 6 / 10 to AUTOLIV INC (ALV). This can be considered as Fairly Valued.
Can you provide the profitability details for AUTOLIV INC?
AUTOLIV INC (ALV) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for ALV stock?
The Earnings per Share (EPS) of AUTOLIV INC (ALV) is expected to grow by 16.02% in the next year.
How sustainable is the dividend of AUTOLIV INC (ALV) stock?
The dividend rating of AUTOLIV INC (ALV) is 7 / 10 and the dividend payout ratio is 30.32%.