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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years ALV always reported a positive cash flow from operatings.
1.2 Ratios
ALV's Return On Assets of 8.45% is amongst the best of the industry. ALV outperforms 91.36% of its industry peers.
ALV has a better Return On Equity (29.18%) than 100.00% of its industry peers.
ALV's Return On Invested Capital of 17.56% is amongst the best of the industry. ALV outperforms 96.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALV is significantly above the industry average of 9.05%.
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
With a Profit Margin value of 6.63%, ALV perfoms like the industry average, outperforming 43.21% of the companies in the same industry.
ALV's Profit Margin has improved in the last couple of years.
ALV has a Operating Margin (10.03%) which is comparable to the rest of the industry.
ALV's Operating Margin has improved in the last couple of years.
ALV has a Gross Margin of 18.97%. This is in the lower half of the industry: ALV underperforms 75.31% of its industry peers.
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
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.
The number of shares outstanding for ALV has been reduced compared to 5 years ago.
ALV has a worse debt/assets ratio than last year.
2.2 Solvency
ALV has an Altman-Z score of 2.94. 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.
With a decent Altman-Z score value of 2.94, ALV is doing good in the industry, outperforming 67.90% of the companies in the same industry.
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 in the lower half of the industry: ALV underperforms 60.49% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that ALV is somewhat dependend on debt financing.
The Debt to Equity ratio of ALV (0.77) is worse than 79.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.94 |
ROIC/WACC2.68
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.97 indicates that ALV may have some problems paying its short term obligations.
ALV has a Current ratio of 0.97. This is amonst the worse of the industry: ALV underperforms 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.
With a Quick ratio value of 0.73, ALV is not doing good in the industry: 91.36% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
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 9.47% on average per year.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y6.1%
EPS Next 2Y12.64%
EPS Next 3Y14.59%
EPS Next 5Y9.47%
Revenue Next Year-3.24%
Revenue Next 2Y0.24%
Revenue Next 3Y2.22%
Revenue Next 5Y2.41%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALV is valuated correctly with a Price/Earnings ratio of 12.38.
ALV's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ALV is valued rather cheaply.
ALV is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
The rest of the industry has a similar Price/Forward Earnings ratio as ALV.
When comparing the Price/Forward Earnings ratio of ALV to the average of the S&P500 Index (22.19), we can say ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.42 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 7.04 |
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.
ALV's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)1.58
EPS Next 2Y12.64%
EPS Next 3Y14.59%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
ALV's Dividend Yield is comparable with the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.40, ALV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
31.63% 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.
DP31.63%
EPS Next 2Y12.64%
EPS Next 3Y14.59%
110.3
+0.26 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners72.5%
Inst Owner Change-4.22%
Ins Owners0.24%
Ins Owner Change9.03%
Market Cap8.51B
Analysts76.67
Price Target112.84 (2.3%)
Short Float %3.2%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)5.38%
PT rev (3m)-2.35%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-7.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.17%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.82 | ||
| P/FCF | 18 | ||
| P/OCF | 8.4 | ||
| P/B | 3.62 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)8.91
EY8.08%
EPS(NY)10.58
Fwd EY9.59%
FCF(TTM)6.13
FCFY5.56%
OCF(TTM)13.14
OCFY11.91%
SpS134.14
BVpS30.46
TBVpS12.58
PEG (NY)2.03
PEG (5Y)1.58
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 | 2.94 |
F-Score8
WACC6.55%
ROIC/WACC2.68
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 Y6.1%
EPS Next 2Y12.64%
EPS Next 3Y14.59%
EPS Next 5Y9.47%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%-1.41%
Revenue Next Year-3.24%
Revenue Next 2Y0.24%
Revenue Next 3Y2.22%
Revenue Next 5Y2.41%
EBIT growth 1Y8.23%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year46.24%
EBIT Next 3Y20.73%
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%