AUTOLIV INC (ALV) Stock Fundamental Analysis
NYSE:ALV - New York Stock Exchange, Inc. - US0528001094 - Common Stock - Currency: USD
Overall ALV gets a fundamental rating of 5 out of 10. We evaluated ALV against 81 industry peers in the Automobile Components industry. While ALV has a great profitability rating, there are quite some concerns on its financial health. ALV is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ALV was profitable.
ALV had a positive operating cash flow in the past year.
Each year in the past 5 years ALV has been profitable.
Each year in the past 5 years ALV had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.45%, ALV belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
With an excellent Return On Equity value of 29.18%, ALV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.56%, ALV belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALV is significantly above the industry average of 8.96%.
The 3 year average ROIC (14.52%) for ALV is below the current ROIC(17.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 29.18% | ||
| ROIC | 17.56% |
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 6.63%. This is comparable to the rest of the industry: ALV outperforms 44.44% of its industry peers.
ALV's Profit Margin has improved in the last couple of years.
The Operating Margin of ALV (10.03%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALV has grown nicely.
Looking at the Gross Margin, with a value of 18.97%, ALV is doing worse than 75.31% 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 | 10.03% | ||
| PM (TTM) | 6.63% | ||
| GM | 18.97% |
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.
ALV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ALV is higher compared to a year ago.
2.2 Solvency
ALV has an Altman-Z score of 2.85. 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 2.85 is fine compared to the rest of the industry. ALV outperforms 69.14% of its industry peers.
The Debt to FCF ratio of ALV is 4.45, which is a neutral value as it means it would take ALV, 4.45 years of fcf income to pay off all of its debts.
ALV has a Debt to FCF ratio of 4.45. This is comparable to the rest of the industry: ALV outperforms 40.74% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that ALV is somewhat dependend on debt financing.
ALV has a worse Debt to Equity ratio (0.77) than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.85 |
ROIC/WACC2.64
WACC6.65%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ALV may have some problems paying its short term obligations.
ALV has a worse Current ratio (0.97) than 95.06% of its industry peers.
ALV has a Quick Ratio of 0.97. 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 0.73, ALV is doing worse than 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for ALV have decreased by 0.00% in the last 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.
ALV shows a decrease in Revenue. In the last year, the revenue decreased by -2.29%.
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)0%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%36.08%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-1.41%
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 11.28% on average per year.
The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y5.94%
EPS Next 2Y12.01%
EPS Next 3Y12.89%
EPS Next 5Y11.28%
Revenue Next Year-3.11%
Revenue Next 2Y0.16%
Revenue Next 3Y2.22%
Revenue Next 5Y3.18%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.99 indicates a reasonable valuation of ALV.
Based on the Price/Earnings ratio, ALV is valued a bit cheaper than 60.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALV to the average of the S&P500 Index (24.21), we can say ALV is valued rather cheaply.
ALV is valuated reasonably with a Price/Forward Earnings ratio of 9.36.
ALV's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 6.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALV does not grow enough to justify the current Price/Earnings ratio.
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 12.89% in the coming years.
PEG (NY)1.85
PEG (5Y)1.4
EPS Next 2Y12.01%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
ALV's Dividend Yield is comparable with the industry average which is at 4.24.
ALV's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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 31.63% 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.
DP31.63%
EPS Next 2Y12.01%
EPS Next 3Y12.89%
97.96
+2.73 (+2.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners74.9%
Inst Owner Change4.63%
Ins Owners0.18%
Ins Owner Change6.49%
Market Cap7.57B
Analysts75.2
Price Target107.08 (9.31%)
Short Float %3.26%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP31.63%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.02%
Min EPS beat(2)6.72%
Max EPS beat(2)27.32%
EPS beat(4)2
Avg EPS beat(4)2.65%
Min EPS beat(4)-17%
Max EPS beat(4)27.32%
EPS beat(8)5
Avg EPS beat(8)6.86%
EPS beat(12)7
Avg EPS beat(12)16.23%
EPS beat(16)8
Avg EPS beat(16)7.11%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)1.38%
Revenue beat(4)1
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.72%
Max Revenue beat(4)1.38%
Revenue beat(8)2
Avg Revenue beat(8)-1.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)4
Avg Revenue beat(16)-1.76%
PT rev (1m)-7.35%
PT rev (3m)-11.2%
EPS NQ rev (1m)-4.66%
EPS NQ rev (3m)-6.21%
EPS NY rev (1m)-5.9%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 9.36 | ||
| P/S | 0.73 | ||
| P/FCF | 16.01 | ||
| P/OCF | 7.47 | ||
| P/B | 3.22 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)8.91
EY9.1%
EPS(NY)10.46
Fwd EY10.68%
FCF(TTM)6.12
FCFY6.25%
OCF(TTM)13.12
OCFY13.39%
SpS133.93
BVpS30.41
TBVpS12.56
PEG (NY)1.85
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 29.18% | ||
| ROCE | 24.08% | ||
| ROIC | 17.56% | ||
| ROICexc | 18.9% | ||
| ROICexgc | 28.04% | ||
| OM | 10.03% | ||
| PM (TTM) | 6.63% | ||
| GM | 18.97% | ||
| FCFM | 4.57% |
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%
ROICexcg growth 3Y10.72%
ROICexcg 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-Score8
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.45 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 140.16% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.16% | ||
| Profit Quality | 68.95% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.85 |
F-Score8
WACC6.65%
ROIC/WACC2.64
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)0%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%36.08%
EPS Next Y5.94%
EPS Next 2Y12.01%
EPS Next 3Y12.89%
EPS Next 5Y11.28%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-1.41%
Revenue Next Year-3.11%
Revenue Next 2Y0.16%
Revenue Next 3Y2.22%
Revenue Next 5Y3.18%
EBIT growth 1Y8.23%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year48.74%
EBIT Next 3Y21.3%
EBIT Next 5YN/A
FCF growth 1Y2589.47%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y69.57%
OCF growth 3Y12.04%
OCF growth 5Y10.57%