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VOLV

AB VolvoOM:VOLV B Stock Report

Market Cap

kr402.7b

7D

2.0%

1Y

9.9%

Updated

15 Oct, 2021

Data

Company Financials +
VOLV B fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends4/6

VOLV B Overview

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania.

AB Volvo Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AB Volvo
Historical stock prices
Current Share Pricekr200.85
52 Week Highkr165.60
52 Week Lowkr240.80
Beta1.16
1 Month Change4.69%
3 Month Change-3.92%
1 Year Change9.90%
3 Year Change50.06%
5 Year Change111.64%
Change since IPO1,028.37%

Recent News & Updates

Oct 15
Are Investors Undervaluing AB Volvo (publ) (STO:VOLV B) By 43%?

Are Investors Undervaluing AB Volvo (publ) (STO:VOLV B) By 43%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AB Volvo (publ...

Aug 25
Should You Think About Buying AB Volvo (publ) (STO:VOLV B) Now?

Should You Think About Buying AB Volvo (publ) (STO:VOLV B) Now?

Let's talk about the popular AB Volvo (publ) ( STO:VOLV B ). The company's shares received a lot of attention from a...

Aug 13
Does AB Volvo (STO:VOLV B) Have A Healthy Balance Sheet?

Does AB Volvo (STO:VOLV B) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

VOLV BSE MachinerySE Market
7D2.0%3.8%4.4%
1Y9.9%29.5%29.5%

Return vs Industry: VOLV B underperformed the Swedish Machinery industry which returned 30.3% over the past year.

Return vs Market: VOLV B underperformed the Swedish Market which returned 29.4% over the past year.

Price Volatility

Is VOLV B's price volatile compared to industry and market?
VOLV B volatility
VOLV B Beta1.16
Industry Beta1.03
Market Beta1

Stable Share Price: VOLV B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: VOLV B's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191580,784Martin Lundstedthttps://www.volvogroup.com

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company offers trucks for long-haulage, construction, mining, and distribution purposes under the Volvo, UD Trucks, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis, as well as associated transport systems under the Prevost and Nova Bus brands. It also provides construction equipment, including excavators, articulated and rigid haulers, wheel loaders, road construction machines, pavers, and compactors under the brand names of Volvo, SDLG, and Terex Trucks.

AB Volvo Fundamentals Summary

How do AB Volvo's earnings and revenue compare to its market cap?
VOLV B fundamental statistics
Market Capkr402.69b
Earnings (TTM)kr32.67b
Revenue (TTM)kr358.35b

12.5x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VOLV B income statement (TTM)
Revenuekr358.35b
Cost of Revenuekr262.55b
Gross Profitkr85.18b
Expenseskr52.51b
Earningskr32.67b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 21, 2021

Earnings per share (EPS)16.06
Gross Margin23.77%
Net Profit Margin9.12%
Debt/Equity Ratio112.0%

How did VOLV B perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

37%

Payout Ratio

Valuation

Is AB Volvo undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VOLV B (SEK200.85) is trading below our estimate of fair value (SEK360.97)

Significantly Below Fair Value: VOLV B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VOLV B is good value based on its PE Ratio (12.5x) compared to the Swedish Machinery industry average (28x).

PE vs Market: VOLV B is good value based on its PE Ratio (12.5x) compared to the Swedish market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: VOLV B is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: VOLV B is good value based on its PB Ratio (3.4x) compared to the SE Machinery industry average (3.7x).


Future Growth

How is AB Volvo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLV B's forecast earnings growth (7.7% per year) is above the savings rate (0.3%).

Earnings vs Market: VOLV B's earnings (7.7% per year) are forecast to grow faster than the Swedish market (5.8% per year).

High Growth Earnings: VOLV B's earnings are forecast to grow, but not significantly.

Revenue vs Market: VOLV B's revenue (6.8% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: VOLV B's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VOLV B's Return on Equity is forecast to be high in 3 years time (24.8%)


Past Performance

How has AB Volvo performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOLV B has high quality earnings.

Growing Profit Margin: VOLV B's current net profit margins (9.1%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: VOLV B's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: VOLV B's earnings growth over the past year (76.5%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: VOLV B earnings growth over the past year (76.5%) exceeded the Machinery industry 34.4%.


Return on Equity

High ROE: Whilst VOLV B's Return on Equity (26.95%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is AB Volvo's financial position?


Financial Position Analysis

Short Term Liabilities: VOLV B's short term assets (SEK250.0B) exceed its short term liabilities (SEK219.9B).

Long Term Liabilities: VOLV B's short term assets (SEK250.0B) exceed its long term liabilities (SEK150.9B).


Debt to Equity History and Analysis

Debt Level: VOLV B's debt to equity ratio (112%) is considered high.

Reducing Debt: VOLV B's debt to equity ratio has reduced from 166.1% to 112% over the past 5 years.

Debt Coverage: VOLV B's debt is well covered by operating cash flow (35.2%).

Interest Coverage: VOLV B's interest payments on its debt are well covered by EBIT (49.2x coverage).


Balance Sheet


Dividend

What is AB Volvo current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VOLV B's dividend (2.99%) is higher than the bottom 25% of dividend payers in the Swedish market (0.94%).

High Dividend: VOLV B's dividend (2.99%) is low compared to the top 25% of dividend payers in the Swedish market (3.59%).


Stability and Growth of Payments

Stable Dividend: VOLV B's dividend payments have been volatile in the past 10 years.

Growing Dividend: VOLV B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), VOLV B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOLV B's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Martin Lundstedt (54 yo)

6yrs

Tenure

kr43,925,924

Compensation

Mr. Martin Lundstedt, M.Sc., has been an Independent Director at Autoliv, Inc. since May 12, 2021. He has been the Chief Executive Officer, President and Member of the Group Executive Board at AB Volvo (pu...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD5.10M) is above average for companies of similar size in the Swedish market ($USD2.41M).

Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VOLV B's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: VOLV B's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VOLV B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AB Volvo (publ)'s employee growth, exchange listings and data sources


Key Information

  • Name: AB Volvo (publ)
  • Ticker: VOLV B
  • Exchange: OM
  • Founded: 1915
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: kr402.694b
  • Shares outstanding: 2.03b
  • Website: https://www.volvogroup.com

Number of Employees


Location

  • AB Volvo (publ)
  • GropegArdsgatan 2
  • Gothenburg
  • Västra Götaland County
  • 417 15
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 22:34
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.