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VOLV

AB Volvo OM:VOLV B Stock Report

Last Price

kr159.86

Market Cap

kr328.0b

7D

0.8%

1Y

-18.1%

Updated

03 Oct, 2022

Data

Company Financials +
VOLV B fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends3/6

VOLV B Stock 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 Pricekr159.86
52 Week Highkr223.85
52 Week Lowkr148.24
Beta1.18
1 Month Change-5.71%
3 Month Change3.14%
1 Year Change-18.13%
3 Year Change22.03%
5 Year Change1.89%
Change since IPO798.09%

Recent News & Updates

Sep 26
At kr159, Is AB Volvo (publ) (STO:VOLV B) Worth Looking At Closely?

At kr159, Is AB Volvo (publ) (STO:VOLV B) Worth Looking At Closely?

AB Volvo (publ) ( STO:VOLV B ) received a lot of attention from a substantial price movement on the OM over the last...

Shareholder Returns

VOLV BSE MachinerySE Market
7D0.8%2.0%0.5%
1Y-18.1%-20.1%-27.6%

Return vs Industry: VOLV B exceeded the Swedish Machinery industry which returned -20.1% over the past year.

Return vs Market: VOLV B exceeded the Swedish Market which returned -27.6% over the past year.

Price Volatility

Is VOLV B's price volatile compared to industry and market?
VOLV B volatility
VOLV B Average Weekly Movement4.1%
Machinery Industry Average Movement6.3%
Market Average Movement6.9%
10% most volatile stocks in SE Market11.6%
10% least volatile stocks in SE Market4.3%

Stable Share Price: VOLV B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VOLV B's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191585,329Martin 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, Arquus, cellcentric, 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, and SDLG Trucks.

AB Volvo Fundamentals Summary

How do AB Volvo's earnings and revenue compare to its market cap?
VOLV B fundamental statistics
Market Capkr328.02b
Earnings (TTM)kr32.52b
Revenue (TTM)kr411.90b

10.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VOLV B income statement (TTM)
Revenuekr411.90b
Cost of Revenuekr305.70b
Gross Profitkr92.25b
Other Expenseskr59.73b
Earningskr32.52b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 20, 2022

Earnings per share (EPS)15.99
Gross Margin22.40%
Net Profit Margin7.90%
Debt/Equity Ratio119.4%

How did VOLV B perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VOLV B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VOLV B?

Other financial metrics that can be useful for relative valuation.

VOLV B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA10.1x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does VOLV B's PE Ratio compare to its peers?

VOLV B PE Ratio vs Peers
The above table shows the PE ratio for VOLV B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.2x
EPI A Epiroc
24.9x6.2%kr185.4b
ENGCON B engcon
35.7x20.2%kr10.2b
COIC Concentric
14.7x6.5%kr6.5b
SAND Sandvik
13.5x9.2%kr195.2b
VOLV B AB Volvo
10x2.9%kr328.0b

Price-To-Earnings vs Peers: VOLV B is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (22.2x).


Price to Earnings Ratio vs Industry

How does VOLV B's PE Ratio compare vs other companies in the SE Machinery Industry?

Price-To-Earnings vs Industry: VOLV B is good value based on its Price-To-Earnings Ratio (10x) compared to the Swedish Machinery industry average (15.7x)


Price to Earnings Ratio vs Fair Ratio

What is VOLV B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VOLV B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: VOLV B is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).


Share Price vs Fair Value

What is the Fair Price of VOLV B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VOLV B (SEK159.86) is trading below our estimate of fair value (SEK319.28)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLV B's forecast earnings growth (2.9% per year) is above the savings rate (0.4%).

Earnings vs Market: VOLV B's earnings (2.9% per year) are forecast to grow slower than the Swedish market (16.9% per year).

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

Revenue vs Market: VOLV B's revenue (1% per year) is forecast to grow slower than the Swedish market (10.8% per year).

High Growth Revenue: VOLV B's revenue (1% 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 (20.5%)


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Past Performance

How has AB Volvo performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.1%

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 (7.9%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: VOLV B's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: VOLV B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VOLV B had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Machinery industry average (23.3%).


Return on Equity

High ROE: Whilst VOLV B's Return on Equity (21.07%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is AB Volvo's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VOLV B's short term assets (SEK286.6B) exceed its short term liabilities (SEK227.1B).

Long Term Liabilities: VOLV B's short term assets (SEK286.6B) exceed its long term liabilities (SEK191.0B).


Debt to Equity History and Analysis

Debt Level: VOLV B's net debt to equity ratio (84.5%) is considered high.

Reducing Debt: VOLV B's debt to equity ratio has reduced from 131% to 119.4% over the past 5 years.

Debt Coverage: VOLV B's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: VOLV B's interest payments on its debt are well covered by EBIT (72.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.07%

Current Dividend Yield

Dividend Yield vs Market

AB Volvo Dividend Yield vs Market
How does AB Volvo dividend yield compare to the market?
SegmentDividend Yield
Company (AB Volvo)4.1%
Market Bottom 25% (SE)1.8%
Market Top 25% (SE)6.1%
Industry Average (Machinery)2.7%
Analyst forecast in 3 Years (AB Volvo)8.3%

Notable Dividend: VOLV B's dividend (4.07%) is higher than the bottom 25% of dividend payers in the Swedish market (1.82%).

High Dividend: VOLV B's dividend (4.07%) is low compared to the top 25% of dividend payers in the Swedish market (6.14%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.6%), VOLV B's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: VOLV B is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

6.3yrs

Average management tenure


CEO

Martin Lundstedt (55 yo)

6.5yrs

Tenure

kr49,338,000

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

Martin Lundstedt's Compensation vs AB Volvo Earnings
How has Martin Lundstedt's remuneration changed compared to AB Volvo's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

kr33b

Mar 31 2022n/an/a

kr31b

Dec 31 2021kr49mkr16m

kr33b

Sep 30 2021n/an/a

kr34b

Jun 30 2021n/an/a

kr33b

Mar 31 2021n/an/a

kr23b

Dec 31 2020kr44mkr15m

kr19b

Sep 30 2020n/an/a

kr17b

Jun 30 2020n/an/a

kr19b

Mar 31 2020n/an/a

kr30b

Dec 31 2019kr52mkr15m

kr36b

Sep 30 2019n/an/a

kr32b

Jun 30 2019n/an/a

kr32b

Mar 31 2019n/an/a

kr30b

Dec 31 2018kr43mkr15m

kr25b

Sep 30 2018n/an/a

kr27b

Jun 30 2018n/an/a

kr25b

Mar 31 2018n/an/a

kr22b

Dec 31 2017kr44mkr13m

kr20b

Compensation vs Market: Martin's total compensation ($USD4.48M) is above average for companies of similar size in the Swedish market ($USD2.37M).

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 (6.3 years average tenure).


Board Members

Experienced Board: VOLV B's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

OM:VOLV B Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
24 May 22Buykr248,962,246AB Industrivärden (publ)Company1,500,000kr166.64
10 May 22Buykr981,278Kurt JofsIndividual6,300kr155.82
26 Apr 22Buykr702,685Hanne de MoraIndividual4,420kr158.98
25 Apr 22Buykr1,975,696Jan GuranderIndividual12,094kr163.36
25 Apr 22Buykr2,748,071Martin WeissburgIndividual16,822kr163.36
25 Apr 22Buykr4,562,039Martin LundstedtIndividual27,926kr163.36
25 Apr 22Buykr1,861,833Melker JernbergIndividual11,397kr163.36
25 Apr 22Buykr1,742,253Lars StenqvistIndividual10,665kr163.36
25 Apr 22Buykr2,133,667Scott RafkinIndividual13,061kr163.36
25 Apr 22Buykr1,027,382Sofia FrandbergIndividual6,289kr163.36
25 Apr 22Buykr2,675,375Joachim RosenbergIndividual16,377kr163.36
25 Apr 22Buykr2,383,121Andrea FuderIndividual14,588kr163.36
25 Apr 22Buykr818,605Kina WilekeIndividual5,011kr163.36
25 Apr 22Buykr1,480,220Bruno BlinIndividual9,061kr163.36
25 Apr 22Buykr1,320,289Roger AlmIndividual8,082kr163.36
25 Apr 22Buykr1,084,395Jens HoltingerIndividual6,638kr163.36
17 Mar 22Buykr365,620,543AB Industrivärden (publ)Company2,000,000kr184.51
09 Feb 22Buykr426,929,200AB Industrivärden (publ)Company2,000,000kr214.00

Ownership Breakdown

What is the ownership structure of VOLV B?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders3,529,8340.2%
Private Companies167,247,5168.2%
General Public869,383,96742.8%
Institutions993,290,76748.8%

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


Top Shareholders

Top 25 shareholders own 49.86% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.84%
AB Industrivärden (publ)
179,700,000SEK28.7b0%25.96%
8.22%
Zhejiang Geely Holding Group
167,247,516SEK26.7b0%no data
3.43%
AMF Fonder AB
69,775,433SEK11.2b0%3.66%
3.4%
BlackRock, Inc.
69,062,595SEK11.0b0%0.02%
3.27%
Swedbank Robur Fonder AB
66,544,164SEK10.6b0%1.52%
3.26%
Alecta Pensionsförsäkring, ömsesidigt
66,231,010SEK10.6b0%3.07%
2.52%
The Vanguard Group, Inc.
51,343,420SEK8.2b0%0.02%
2.3%
Norges Bank Investment Management
46,764,623SEK7.5b0%0.09%
1.66%
Nordea Investment Management AB
33,752,612SEK5.4b0%0.44%
1.59%
SEB Investment Management AB
32,238,747SEK5.2b0.97%1.17%
1.36%
J.P. Morgan Asset Management, Inc.
27,593,238SEK4.4b-1.01%0.07%
1.03%
Första AP-fonden
20,915,758SEK3.3b0%1.73%
0.88%
Harris Associates L.P.
17,940,820SEK2.9b3.2%0.34%
0.83%
Didner & Gerge Fonder
16,897,476SEK2.7b0%5.68%
0.82%
Handelsbanken Asset Management
16,583,660SEK2.7b0.04%0.51%
0.81%
AP Fonden 4
16,476,306SEK2.6b0%1.29%
0.74%
AFA Insurance, Asset Management Arm
15,003,079SEK2.4b0%75.77%
0.69%
Third Swedish National Pension Fund
14,009,974SEK2.2b0%1.51%
0.68%
Capital Research and Management Company
13,821,372SEK2.2b-0.32%0.01%
0.68%
Carnegie Fonder AB
13,749,967SEK2.2b0%4.6%
0.63%
Xact Kapitalförvaltning AB
12,844,438SEK2.1b0%1.81%
0.6%
Geode Capital Management, LLC
12,172,171SEK1.9b-0.41%0.02%
0.55%
Dimensional Fund Advisors LP
11,230,304SEK1.8b4.71%0.04%
0.54%
Länsförsäkringar Fondförvaltning Aktiebolag
10,986,439SEK1.8b0%1%
0.54%
SPP Fonder AB
10,929,474SEK1.7b0.09%0.96%

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
  • Implied Market Cap: kr328.022b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0HTPLSE (London Stock Exchange)YesSeries B SharesGBSEKNov 1984
VOLV BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKNov 1984
VOLV.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDNov 1984
VOL1DB (Deutsche Boerse AG)YesSeries B SharesDEEURNov 1984
VOLVBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKNov 1984
VOLVBSEP (The Stock Exchange Prague Co. Ltd.)YesSeries B SharesCZCZKNov 1984
0MHWLSE (London Stock Exchange)Series A SharesGBSEKJan 1988
VOLV AOM (OMX Nordic Exchange Stockholm)Series A SharesSESEKJan 1988
VOLA.FOTCPK (Pink Sheets LLC)Series A SharesUSUSDJan 1988
VOL3DB (Deutsche Boerse AG)Series A SharesDEEURJan 1988
VOL3XTRA (XETRA Trading Platform)Series A SharesDEEURJan 1988
VOLVASBATS-CHIXE (BATS 'Chi-X Europe')Series A SharesGBSEKJan 1988
VLVL.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REP 1 ORD SHSUSUSDJan 2016
VOL4DB (Deutsche Boerse AG)UNSP ADR EACH REP 1 ORD SHSDEEURJan 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.