AUTOLIV INC (ALV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALV - US0528001094 - Common Stock
121.07 USD
+0.92 (+0.77%)
121.07 USD
0 (0%)
Overall ALV gets a fundamental rating of 6 out of 10. We evaluated ALV against 81 industry peers in the Automobile Components industry. While ALV has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALV.
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.
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
ALV has a better Return On Assets (8.89%) than 92.59% of its industry peers.
ALV has a Return On Equity of 29.50%. This is amongst the best in the industry. ALV outperforms 100.00% of its industry peers.
ALV's Return On Invested Capital of 18.53% is amongst the best of the industry. ALV outperforms 98.77% 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 8.55%.
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
The Profit Margin of ALV (7.08%) is better than 93.83% 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 46.91% of its industry peers.
In the last couple of years the Operating Margin of ALV has grown nicely.
ALV has a Gross Margin of 19.51%. This is in the lower half of the industry: ALV underperforms 71.60% of its industry peers.
In the last couple of years the Gross Margin of ALV has remained more or less at the same level.
| 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.
ALV has less shares outstanding than it did 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 2.97. 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 has a better Altman-Z score (2.97) than 65.43% 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.
ALV has a better Debt to FCF ratio (3.55) than 87.65% of its industry peers.
ALV has a Debt/Equity ratio of 0.68. This is a neutral value indicating ALV is somewhat dependend on debt financing.
ALV has a worse Debt to Equity ratio (0.68) than 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.97 |
ROIC/WACC2.77
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ALV may have some problems paying 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 92.59% of its industry peers.
A Quick Ratio of 0.70 indicates that ALV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, ALV is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ALV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.75%.
The Earnings Per Share has been growing slightly by 7.83% on average over the past years.
ALV shows a small growth in Revenue. In the last year, the Revenue has grown by 0.84%.
ALV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.98% yearly.
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
The Earnings Per Share is expected to grow by 13.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y16.01%
EPS Next 2Y16.37%
EPS Next 3Y16.05%
EPS Next 5Y13.64%
Revenue Next Year2.72%
Revenue Next 2Y3.56%
Revenue Next 3Y4%
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
Based on the Price/Earnings ratio of 12.44, the valuation of ALV can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ALV indicates a somewhat cheap valuation: ALV is cheaper than 67.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, ALV is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.72, 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 60.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ALV is valued a bit cheaper than 60.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.92 | ||
| EV/EBITDA | 6.9 |
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.
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 16.05% in the coming years.
PEG (NY)0.78
PEG (5Y)1.59
EPS Next 2Y16.37%
EPS Next 3Y16.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, ALV has a reasonable but not impressive dividend return.
ALV's Dividend Yield is comparable with the industry average which is at 2.56.
Compared to an average S&P500 Dividend Yield of 1.87, ALV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of ALV has a limited annual growth rate of 1.88%.
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)1.88%
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 2Y16.37%
EPS Next 3Y16.05%
121.07
+0.92 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners71.45%
Inst Owner Change-4%
Ins Owners0.24%
Ins Owner Change0.09%
Market Cap9.09B
Revenue(TTM)10.61B
Net Income(TTM)752.00M
Analysts79.2
Price Target139.9 (15.55%)
Short Float %3.46%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)0.35%
PT rev (3m)7.33%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.39%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 10.72 | ||
| P/S | 0.86 | ||
| P/FCF | 15.92 | ||
| P/OCF | 8.8 | ||
| P/B | 3.57 | ||
| P/tB | 7.82 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)9.73
EY8.04%
EPS(NY)11.29
Fwd EY9.33%
FCF(TTM)7.61
FCFY6.28%
OCF(TTM)13.76
OCFY11.36%
SpS141.37
BVpS33.95
TBVpS15.48
PEG (NY)0.78
PEG (5Y)1.59
Graham Number86.21
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 | 2.97 |
F-Score7
WACC6.7%
ROIC/WACC2.77
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 Y16.01%
EPS Next 2Y16.37%
EPS Next 3Y16.05%
EPS Next 5Y13.64%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%5.91%
Revenue Next Year2.72%
Revenue Next 2Y3.56%
Revenue Next 3Y4%
Revenue Next 5Y3.71%
EBIT growth 1Y16.39%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year52.45%
EBIT Next 3Y21.73%
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%.