AUTOLIV INC (ALV) Stock Fundamental Analysis
USA - NYSE:ALV - US0528001094 - Common Stock
123.14 USD
+0.82 (+0.67%)
123.14 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALV. ALV was compared to 82 industry peers in the Automobile Components industry. While ALV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALV may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ALV was profitable.
ALV had a positive operating cash flow in the past year.
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
ALV has a better Return On Assets (8.89%) than 92.68% of its industry peers.
ALV's Return On Equity of 29.50% is amongst the best of the industry. ALV outperforms 100.00% of its industry peers.
The Return On Invested Capital of ALV (18.53%) is better than 98.78% of its industry peers.
ALV had an Average Return On Invested Capital over the past 3 years of 14.52%. This is significantly above the industry average of 8.52%.
The last Return On Invested Capital (18.53%) for ALV is above the 3 year average (14.52%), which is a sign of increasing profitability.
| 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
ALV has a Profit Margin of 7.08%. This is amongst the best in the industry. ALV outperforms 93.90% of its industry peers.
ALV's Profit Margin has improved in the last couple of years.
ALV has a Operating Margin of 10.64%. This is comparable to the rest of the industry: ALV outperforms 46.34% of its industry peers.
ALV's Operating Margin has improved in the last couple of years.
ALV's Gross Margin of 19.51% is on the low side compared to the rest of the industry. ALV is outperformed by 71.95% of its industry peers.
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
ALV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ALV has been reduced compared to 1 year ago.
Compared to 5 years ago, ALV has less shares outstanding
Compared to 1 year ago, ALV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that ALV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALV's Altman-Z score of 2.99 is fine compared to the rest of the industry. ALV outperforms 65.85% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 3.55, ALV belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that ALV is somewhat dependend on debt financing.
ALV has a worse Debt to Equity ratio (0.68) than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.99 |
ROIC/WACC2.76
WACC6.71%
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's Current ratio of 0.95 is on the low side compared to the rest of the industry. ALV is outperformed by 92.68% 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.
With a Quick ratio value of 0.70, ALV is not doing good in the industry: 89.02% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
The Revenue has been growing slightly by 0.84% in the past 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
ALV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.64% yearly.
Based on estimates for the next years, ALV will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y16.03%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y13.64%
Revenue Next Year2.64%
Revenue Next 2Y3.55%
Revenue Next 3Y4.03%
Revenue Next 5Y3.71%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ALV is valuated correctly with a Price/Earnings ratio of 12.66.
65.85% of the companies in the same industry are more expensive than ALV, based on the Price/Earnings ratio.
ALV is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.90, which indicates a very decent valuation of ALV.
ALV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 33.72. ALV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALV indicates a somewhat cheap valuation: ALV is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.38 | ||
| EV/EBITDA | 7.03 |
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.
The excellent profitability rating of ALV may justify a higher PE ratio.
A more expensive valuation may be justified as ALV's earnings are expected to grow with 16.27% in the coming years.
PEG (NY)0.79
PEG (5Y)1.62
EPS Next 2Y16.37%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.29, ALV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ALV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
ALV pays out 30.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.32%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
123.14
+0.82 (+0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.41%
Inst Owner Change-1.14%
Ins Owners0.24%
Ins Owner Change-0.5%
Market Cap9.35B
Revenue(TTM)10.61B
Net Income(TTM)752.00M
Analysts78.4
Price Target139.42 (13.22%)
Short Float %2.51%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP30.32%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)1.65%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)11.78%
Min EPS beat(4)1.65%
Max EPS beat(4)27.32%
EPS beat(8)6
Avg EPS beat(8)5.78%
EPS beat(12)8
Avg EPS beat(12)5.3%
EPS beat(16)10
Avg EPS beat(16)9.81%
Revenue beat(2)2
Avg Revenue beat(2)0.86%
Min Revenue beat(2)0.04%
Max Revenue beat(2)1.69%
Revenue beat(4)3
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.69%
Revenue beat(8)3
Avg Revenue beat(8)-1.07%
Revenue beat(12)5
Avg Revenue beat(12)-0.62%
Revenue beat(16)6
Avg Revenue beat(16)-1.02%
PT rev (1m)4.97%
PT rev (3m)7.49%
EPS NQ rev (1m)-4.1%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)2.45%
EPS NY rev (3m)8.54%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 10.9 | ||
| P/S | 0.88 | ||
| P/FCF | 16.38 | ||
| P/OCF | 9.06 | ||
| P/B | 3.67 | ||
| P/tB | 8.05 | ||
| EV/EBITDA | 7.03 |
EPS(TTM)9.73
EY7.9%
EPS(NY)11.29
Fwd EY9.17%
FCF(TTM)7.52
FCFY6.1%
OCF(TTM)13.6
OCFY11.04%
SpS139.71
BVpS33.55
TBVpS15.3
PEG (NY)0.79
PEG (5Y)1.62
Graham Number85.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 29.5% | ||
| ROCE | 26.12% | ||
| ROIC | 18.53% | ||
| ROICexc | 19.46% | ||
| ROICexgc | 28.23% | ||
| OM | 10.64% | ||
| PM (TTM) | 7.08% | ||
| GM | 19.51% | ||
| FCFM | 5.38% |
ROA(3y)6.54%
ROA(5y)5.54%
ROE(3y)21.22%
ROE(5y)17.59%
ROIC(3y)14.52%
ROIC(5y)12.08%
ROICexc(3y)16.2%
ROICexc(5y)14.02%
ROICexgc(3y)25.07%
ROICexgc(5y)21.86%
ROCE(3y)19.64%
ROCE(5y)16.17%
ROICexgc growth 3Y10.72%
ROICexgc growth 5Y5.98%
ROICexc growth 3Y12.07%
ROICexc growth 5Y6.39%
OM growth 3Y5.44%
OM growth 5Y2.52%
PM growth 3Y5.56%
PM growth 5Y2.86%
GM growth 3Y0.34%
GM growth 5Y0.01%
F-Score7
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 116.37% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | 75.93% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.99 |
F-Score7
WACC6.71%
ROIC/WACC2.76
Cap/Depr(3y)154.12%
Cap/Depr(5y)134.24%
Cap/Sales(3y)5.89%
Cap/Sales(5y)5.57%
Profit Quality(3y)62.94%
Profit Quality(5y)105.41%
High Growth Momentum
Growth
EPS 1Y (TTM)7.75%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%26.09%
EPS Next Y16.03%
EPS Next 2Y16.37%
EPS Next 3Y16.27%
EPS Next 5Y13.64%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%5.91%
Revenue Next Year2.64%
Revenue Next 2Y3.55%
Revenue Next 3Y4.03%
Revenue Next 5Y3.71%
EBIT growth 1Y16.39%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year50.04%
EBIT Next 3Y21.6%
EBIT Next 5YN/A
FCF growth 1Y38.59%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y3.4%
OCF growth 3Y12.04%
OCF growth 5Y10.57%
AUTOLIV INC / ALV FAQ
Can you provide the ChartMill fundamental rating for AUTOLIV INC?
ChartMill assigns a fundamental rating of 6 / 10 to ALV.
What is the valuation status for ALV stock?
ChartMill assigns a valuation rating of 7 / 10 to AUTOLIV INC (ALV). This can be considered as Undervalued.
Can you provide the profitability details for AUTOLIV INC?
AUTOLIV INC (ALV) has a profitability rating of 8 / 10.
How financially healthy is AUTOLIV INC?
The financial health rating of AUTOLIV INC (ALV) is 4 / 10.
Is the dividend of AUTOLIV INC sustainable?
The dividend rating of AUTOLIV INC (ALV) is 6 / 10 and the dividend payout ratio is 30.32%.