AUTOLIV INC (ALV)
US0528001094 - Common Stock
ALV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. ALV has an excellent profitability rating, but there are concerns on its financial health. ALV is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
ALV had positive earnings in the past year.
ALV had a positive operating cash flow in the past year.
In the past 5 years ALV has always been profitable.
In the past 5 years ALV always reported a positive cash flow from operatings.
1.2 Ratios
ALV has a Return On Assets of 7.80%. This is amongst the best in the industry. ALV outperforms 92.59% of its industry peers.
The Return On Equity of ALV (27.20%) is better than 98.77% of its industry peers.
ALV's Return On Invested Capital of 16.68% is amongst the best of the industry. ALV outperforms 95.06% of its industry peers.
ALV had an Average Return On Invested Capital over the past 3 years of 11.91%. This is above the industry average of 9.44%.
The last Return On Invested Capital (16.68%) for ALV is above the 3 year average (11.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 27.2% | ||
| ROIC | 16.68% |
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 has a Profit Margin (5.91%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ALV has grown nicely.
The Operating Margin of ALV (9.24%) is worse than 60.49% of its industry peers.
ALV's Operating Margin has improved in the last couple of years.
ALV's Gross Margin of 18.09% is on the low side compared to the rest of the industry. ALV is outperformed by 76.54% of its industry peers.
In the last couple of years the Gross Margin of ALV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | 5.91% | ||
| GM | 18.09% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALV is creating value.
Compared to 1 year ago, ALV has less shares outstanding
Compared to 5 years ago, ALV has less shares outstanding
ALV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.91 indicates that ALV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, ALV is in the better half of the industry, outperforming 64.20% of the companies in the same industry.
ALV has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as ALV would need 3.89 years to pay back of all of its debts.
ALV has a worse Debt to FCF ratio (3.89) than 62.96% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that ALV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, ALV is doing worse than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 2.91 |
ROIC/WACC2.68
WACC6.23%
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.
The Current ratio of ALV (0.98) is worse than 96.30% of its industry peers.
A Quick Ratio of 0.73 indicates that ALV may have some problems paying its short term obligations.
The Quick ratio of ALV (0.73) is worse than 91.36% 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 50.25%, 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 8.21% in the past year. This is quite good.
Measured over the past years, ALV shows a small growth in Revenue. The Revenue has been growing by 3.84% on average per year.
EPS 1Y (TTM)50.25%
EPS 3Y37.73%
EPS 5Y4.36%
EPS Q2Q%-3.11%
Revenue 1Y (TTM)8.21%
Revenue growth 3Y12.04%
Revenue growth 5Y3.84%
Sales Q2Q%-1.14%
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 12.45% yearly.
Based on estimates for the next years, ALV will show a small growth in Revenue. The Revenue will grow by 5.39% on average per year.
EPS Next Y20.03%
EPS Next 2Y21.49%
EPS Next 3Y20.3%
EPS Next 5Y12.45%
Revenue Next Year6.02%
Revenue Next 2Y5.87%
Revenue Next 3Y5.81%
Revenue Next 5Y5.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.19, the valuation of ALV can be described as very reasonable.
Based on the Price/Earnings ratio, ALV is valued a bit cheaper than 67.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, ALV is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.15, the valuation of ALV can be described as very reasonable.
ALV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALV is cheaper than 66.67% of the companies in the same industry.
ALV is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA is on the same level as the industry average.
ALV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.46 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALV has a very decent profitability rating, which may justify a higher PE ratio.
ALV's earnings are expected to grow with 20.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)2.57
EPS Next 2Y21.49%
EPS Next 3Y20.3%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 2.78%.
ALV's Dividend Yield is comparable with the industry average which is at 3.67.
Compared to an average S&P500 Dividend Yield of 2.30, ALV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
35.68% of the earnings are spent on dividend by ALV. This is a low number and sustainable payout ratio.
ALV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.68%
EPS Next 2Y21.49%
EPS Next 3Y20.3%
AUTOLIV INC
NYSE:ALV (7/26/2024, 7:16:09 PM)
After market: 99.03 0 (0%)99.03
+1.37 (+1.4%)
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 Cap7.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min 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 | 11.19 | ||
| Fwd PE | 8.15 | ||
| 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)0.56
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 27.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.24% | ||
| PM (TTM) | 5.91% | ||
| GM | 18.09% | ||
| 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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)50.25%
EPS 3Y37.73%
EPS 5Y
EPS Q2Q%
EPS Next Y20.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.21%
Revenue growth 3Y12.04%
Revenue growth 5Y
Sales 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