AUTOLIV INC (ALV) Stock Fundamental Analysis
NYSE:ALV - New York Stock Exchange, Inc. - US0528001094 - Common Stock - Currency: USD
ALV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. While ALV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALV had positive earnings in the past year.
In the past year ALV had a positive cash flow from operations.
Each year in the past 5 years ALV has been profitable.
In the past 5 years ALV always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.44%, ALV belongs to the best of the industry, outperforming 91.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.96%, ALV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALV has a Return On Invested Capital of 17.85%. This is amongst the best in the industry. ALV outperforms 96.25% 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 8.73%.
The last Return On Invested Capital (17.85%) for ALV is above the 3 year average (14.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 28.96% | ||
| ROIC | 17.85% |
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's Profit Margin of 6.83% is amongst the best of the industry. ALV outperforms 90.00% of its industry peers.
ALV's Profit Margin has improved in the last couple of years.
ALV has a Operating Margin (10.27%) which is comparable to the rest of the industry.
ALV's Operating Margin has improved in the last couple of years.
The Gross Margin of ALV (19.08%) is worse than 76.25% 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 | 10.27% | ||
| PM (TTM) | 6.83% | ||
| GM | 19.08% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALV is creating value.
ALV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALV has less shares outstanding
The debt/assets ratio for ALV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 indicates that ALV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALV has a better Altman-Z score (2.82) than 65.00% of its industry peers.
ALV has a debt to FCF ratio of 4.56. This is a neutral value as ALV would need 4.56 years to pay back of all of its debts.
ALV has a better Debt to FCF ratio (4.56) than 83.75% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that ALV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, ALV is doing worse than 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | 2.82 |
ROIC/WACC2.76
WACC6.47%
2.3 Liquidity
ALV has a Current Ratio of 0.93. 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 Current ratio, with a value of 0.93, ALV is doing worse than 95.00% of the companies in the same industry.
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 91.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.52% over the past 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 -0.98%.
ALV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.98% yearly.
EPS 1Y (TTM)4.52%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%18.18%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%4.18%
3.2 Future
The Earnings Per Share is expected to grow by 9.47% 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 2.41% yearly.
EPS Next Y6.9%
EPS Next 2Y12.72%
EPS Next 3Y14.78%
EPS Next 5Y9.47%
Revenue Next Year1.75%
Revenue Next 2Y2.86%
Revenue Next 3Y3.87%
Revenue Next 5Y2.41%
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
The Price/Earnings ratio is 12.18, which indicates a correct valuation of ALV.
65.00% of the companies in the same industry are more expensive than ALV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ALV is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.63, the valuation of ALV can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALV is on the same level as its industry peers.
ALV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
ALV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.23 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.78% in the coming years.
PEG (NY)1.77
PEG (5Y)1.56
EPS Next 2Y12.72%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
ALV has a Yearly Dividend Yield of 3.05%.
ALV's Dividend Yield is comparable with the industry average which is at 4.01.
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 | 3.05% |
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
30.21% 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.
DP30.21%
EPS Next 2Y12.72%
EPS Next 3Y14.78%
NYSE:ALV (8/5/2025, 9:35:03 AM)
112.69
+1.5 (+1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners72.5%
Inst Owner Change-0.5%
Ins Owners0.24%
Ins Owner Change9.07%
Market Cap8.66B
Analysts77.6
Price Target124.89 (10.83%)
Short Float %2.61%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend2.73
Dividend Growth(5Y)1.88%
DP30.21%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.48%
Min EPS beat(2)1.65%
Max EPS beat(2)27.32%
EPS beat(4)3
Avg EPS beat(4)7.31%
Min EPS beat(4)-6.44%
Max EPS beat(4)27.32%
EPS beat(8)5
Avg EPS beat(8)2.97%
EPS beat(12)7
Avg EPS beat(12)4%
EPS beat(16)9
Avg EPS beat(16)8.24%
Revenue beat(2)2
Avg Revenue beat(2)1.53%
Min Revenue beat(2)1.38%
Max Revenue beat(2)1.69%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)1.69%
Revenue beat(8)2
Avg Revenue beat(8)-1.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)5
Avg Revenue beat(16)-1.32%
PT rev (1m)7.59%
PT rev (3m)16.63%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-15.94%
EPS NY rev (1m)1.22%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)4.83%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)5.2%
Revenue NY rev (3m)4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 10.63 | ||
| P/S | 0.83 | ||
| P/FCF | 19.23 | ||
| P/OCF | 9.09 | ||
| P/B | 3.51 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)9.25
EY8.21%
EPS(NY)10.6
Fwd EY9.4%
FCF(TTM)5.86
FCFY5.2%
OCF(TTM)12.39
OCFY11%
SpS136.22
BVpS32.14
TBVpS14.06
PEG (NY)1.77
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 28.96% | ||
| ROCE | 25.35% | ||
| ROIC | 17.85% | ||
| ROICexc | 18.82% | ||
| ROICexgc | 27.5% | ||
| OM | 10.27% | ||
| PM (TTM) | 6.83% | ||
| GM | 19.08% | ||
| FCFM | 4.3% |
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-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.56 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 128.72% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.98% | ||
| Profit Quality | 62.94% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.82 |
F-Score7
WACC6.47%
ROIC/WACC2.76
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)4.52%
EPS 3Y18.44%
EPS 5Y7.83%
EPS Q2Q%18.18%
EPS Next Y6.9%
EPS Next 2Y12.72%
EPS Next 3Y14.78%
EPS Next 5Y9.47%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y8.08%
Revenue growth 5Y3.98%
Sales Q2Q%4.18%
Revenue Next Year1.75%
Revenue Next 2Y2.86%
Revenue Next 3Y3.87%
Revenue Next 5Y2.41%
EBIT growth 1Y10.14%
EBIT growth 3Y13.96%
EBIT growth 5Y6.6%
EBIT Next Year46.24%
EBIT Next 3Y20.73%
EBIT Next 5YN/A
FCF growth 1Y4.9%
FCF growth 3Y17.62%
FCF growth 5Y25%
OCF growth 1Y-7.39%
OCF growth 3Y12.04%
OCF growth 5Y10.57%