AUTOLIV INC (ALV)

US0528001094 - Common Stock

106.64  -2.16 (-1.99%)

After market: 106.64 0 (0%)

Fundamental Rating

7

Taking everything into account, ALV scores 7 out of 10 in our fundamental rating. ALV was compared to 43 industry peers in the Automobile Components industry. While ALV has a great profitability rating, there are some minor concerns on its financial health. ALV may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ALV suitable for value investing!



8

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.
Each year in the past 5 years ALV had a positive operating cash flow.

1.2 Ratios

ALV has a Return On Assets of 6.49%. This is amongst the best in the industry. ALV outperforms 83.33% of its industry peers.
ALV's Return On Equity of 22.23% is amongst the best of the industry. ALV outperforms 90.48% of its industry peers.
With an excellent Return On Invested Capital value of 15.43%, ALV belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
ALV had an Average Return On Invested Capital over the past 3 years of 11.91%. This is above the industry average of 9.35%.
The 3 year average ROIC (11.91%) for ALV is below the current ROIC(15.43%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.49%
ROE 22.23%
ROIC 15.43%
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

With a decent Profit Margin value of 5.10%, ALV is doing good in the industry, outperforming 76.19% of the companies in the same industry.
ALV's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.06%, ALV is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of ALV has grown nicely.
ALV has a Gross Margin (17.78%) which is in line with its industry peers.
ALV's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.06%
PM (TTM) 5.1%
GM 17.78%
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%

5

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.
ALV has less shares outstanding than it did 5 years ago.
ALV has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.97 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 2.97, ALV is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of ALV is 3.68, which is a good value as it means it would take ALV, 3.68 years of fcf income to pay off all of its debts.
ALV's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. ALV outperforms 73.81% of its industry peers.
ALV has a Debt/Equity ratio of 0.76. This is a neutral value indicating ALV is somewhat dependend on debt financing.
ALV has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: ALV underperforms 69.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.68
Altman-Z 2.97
ROIC/WACC2.37
WACC6.5%

2.3 Liquidity

ALV has a Current Ratio of 1.10. This is a normal value and indicates that ALV is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ALV (1.10) is worse than 88.10% of its industry peers.
A Quick Ratio of 0.82 indicates that ALV may have some problems paying its short term obligations.
ALV has a worse Quick ratio (0.82) than 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 0.82

6

3. Growth

3.1 Past

ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.33%, which is quite impressive.
ALV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.36% yearly.
ALV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.05%.
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)83.33%
EPS 3Y37.73%
EPS 5Y4.36%
EPS Q2Q%75.56%
Revenue 1Y (TTM)15.05%
Revenue growth 3Y12.04%
Revenue growth 5Y3.84%
Sales Q2Q%4.89%

3.2 Future

The Earnings Per Share is expected to grow by 12.45% on average over the next years. This is quite good.
ALV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.39% yearly.
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

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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.97, the valuation of ALV can be described as very reasonable.
Based on the Price/Earnings ratio, ALV is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.73. ALV is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.78, 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 69.05% of the companies in the same industry.
ALV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.21.
Industry RankSector Rank
PE 11.97
Fwd PE 8.78

4.2 Price Multiples

ALV's Enterprise Value to EBITDA ratio is in line with the industry average.
61.90% of the companies in the same industry are more expensive than ALV, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.8
EV/EBITDA 7.7

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.
ALV's earnings are expected to grow with 20.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)2.75
EPS Next 2Y21.49%
EPS Next 3Y20.3%

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5. Dividend

5.1 Amount

ALV has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
ALV's Dividend Yield is rather good when compared to the industry average which is at 2.83. ALV pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ALV has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.39%

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

41.48% of the earnings are spent on dividend by ALV. This is a bit on the high side, but may be sustainable.
ALV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.48%
EPS Next 2Y21.49%
EPS Next 3Y20.3%

AUTOLIV INC

NYSE:ALV (6/20/2024, 3:47:41 PM)

After market: 106.64 0 (0%)

106.64

-2.16 (-1.99%)

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 Cap8.60B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 11.97
Fwd PE 8.78
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)0.6
PEG (5Y)2.75
Profitability
Industry RankSector Rank
ROA 6.49%
ROE 22.23%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.06%
PM (TTM) 5.1%
GM 17.78%
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 Turnover1.27
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.1
Quick Ratio 0.82
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)83.33%
EPS 3Y37.73%
EPS 5Y
EPS Q2Q%
EPS Next Y20.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.05%
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