OM:VOLV B

Stock Analysis Report

Executive Summary

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.

Snowflake

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has AB Volvo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VOLV B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.07%

VOLV B

-0.2%

SE Machinery

0.004%

SE Market


1 Year Return

13.0%

VOLV B

30.8%

SE Machinery

17.2%

SE Market

Return vs Industry: VOLV B underperformed the Swedish Machinery industry which returned 30.8% over the past year.

Return vs Market: VOLV B underperformed the Swedish Market which returned 17.2% over the past year.


Shareholder returns

VOLV BIndustryMarket
7 Day-0.07%-0.2%0.004%
30 Day9.9%12.9%5.6%
90 Day14.8%23.6%11.3%
1 Year20.9%13.0%35.5%30.8%22.3%17.2%
3 Year76.5%56.3%68.7%40.4%40.5%19.0%
5 Year118.9%81.7%115.4%68.7%61.3%26.7%

Price Volatility Vs. Market

How volatile is AB Volvo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

9.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VOLV B (SEK151.65) is trading above our estimate of fair value (SEK148.39)

Significantly Below Fair Value: VOLV B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VOLV B is good value based on its PE Ratio (9.7x) compared to the Machinery industry average (17.1x).

PE vs Market: VOLV B is good value based on its PE Ratio (9.7x) compared to the Swedish market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: VOLV B's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VOLV B is good value based on its PB Ratio (2.3x) compared to the SE Machinery industry average (2.7x).


Next Steps

Future Growth

How is AB Volvo forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLV B's earnings are forecast to decline over the next 3 years (-10.4% per year).

Earnings vs Market: VOLV B's earnings are forecast to decline over the next 3 years (-10.4% per year).

High Growth Earnings: VOLV B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VOLV B's revenue is expected to decline over the next 3 years (-3.5% per year).

High Growth Revenue: VOLV B's revenue is forecast to decline over the next 3 years (-3.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VOLV B's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has AB Volvo performed over the past 5 years?

32.7%

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 (7.3%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: VOLV B's earnings have grown significantly by 32.7% per year over the past 5 years.

Accelerating Growth: VOLV B's earnings growth over the past year (17.6%) is below its 5-year average (32.7% per year).

Earnings vs Industry: VOLV B earnings growth over the past year (17.6%) exceeded the Machinery industry 11.8%.


Return on Equity

High ROE: Whilst VOLV B's Return on Equity (23.45%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AB Volvo's financial position?


Financial Position Analysis

Short Term Liabilities: VOLV B's short term assets (SEK263.3B) exceeds its short term liabilities (SEK202.8B)

Long Term Liabilities: VOLV B's short term assets (263.3B) exceeds its long term liabilities (184.3B)


Debt to Equity History and Analysis

Debt Level: VOLV B's debt to equity ratio (113%) is considered high

Reducing Debt: VOLV B's debt to equity ratio has reduced from 176.5% to 113% over the past 5 years.

Debt Coverage: VOLV B's debt is well covered by operating cash flow (21.7%).

Interest Coverage: VOLV B's interest payments on its debt are well covered by EBIT (37.9x coverage).


Balance Sheet

Inventory Level: VOLV B has a high level of physical assets or inventory.

Debt Coverage by Assets: VOLV B's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.7%markettop25%4.8%industryaverage2.4%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: VOLV B's dividend (3.3%) is higher than the bottom 25% of dividend payers in the Swedish market (1.73%).

High Dividend: VOLV B's dividend (3.3%) is low compared to the top 25% of dividend payers in the Swedish market (4.8%).


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 (32%), 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 covered by earnings (52% payout ratio).


Next Steps

Management

What is the CEO of AB Volvo's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Martin Lundstedt (52yo)

4.1yrs

Tenure

kr43,453,505

Compensation

Mr. Martin Lundstedt, M.Sc., has been the Chief Executive Officer, President and Member of the Group Executive Board at AB Volvo (publ) since October 22, 2015. Mr. Lundstedt served as the Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD4.48M) is above average for companies of similar size in the Swedish market ($USD1.89M).

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


Management Age and Tenure

3.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: VOLV B's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

60yo

Average Age

Experienced Board: VOLV B's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr63,447,20128 Aug 19
Carl-Henric Svanberg
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares500,000
Max Pricekr127.33
Sellkr2,515,50016 Aug 19
Sofia Frändberg
EntityIndividual
Role
Member of Management Board
EVP of Group Legal & Compliance
Shares19,500
Max Pricekr129.00
Buykr1,510,92518 Jul 19
Martin Lundstedt
EntityIndividual
Role
Chief Executive Officer
CEO, President
Shares10,600
Max Pricekr142.70
Buykr2,684,74929 Apr 19
Martin Weissburg
EntityIndividual
Role
Member of Management Board
Executive VP
Shares17,399
Max Pricekr154.30
Buykr1,106,05729 Apr 19
Jan Ohlsson
EntityIndividual
Role
Member of Management Board
Executive VP of Group Trucks Operations & Member of Group Executive Board
Shares7,168
Max Pricekr154.30
Buykr1,524,53129 Apr 19
Bruno Blin
EntityIndividual
Role
Member of Management Board
Executive VP
Shares9,880
Max Pricekr154.30
Buykr680,63829 Apr 19
Kina Wileke
EntityIndividual
Role
Member of Management Board
EVP of Group Communications & Sustainability Affairs and Member of the Group Executive Board
Shares4,411
Max Pricekr154.30
Buykr2,286,33429 Apr 19
Andrea Fuder
EntityIndividual
Shares14,817
Max Pricekr154.30
Buykr2,634,75429 Apr 19
Joachim Rosenberg
EntityIndividual
Role
Unit Chairman
Executive VP
Shares17,075
Max Pricekr154.30
Buykr900,83129 Apr 19
Sofia Frändberg
EntityIndividual
Role
Member of Management Board
EVP of Group Legal & Compliance
Shares5,838
Max Pricekr154.30
Buykr1,501,38629 Apr 19
Lars Stenqvist
EntityIndividual
Shares9,730
Max Pricekr154.30
Buykr1,701,67329 Apr 19
Melker Jernberg
EntityIndividual
Shares11,028
Max Pricekr154.30
Buykr1,831,44429 Apr 19
Jan Gurander
EntityIndividual
Role
Member of Management Board
Deputy CEO & Member of the Group Executive Board
Shares11,869
Max Pricekr154.30
Buykr4,201,41129 Apr 19
Martin Lundstedt
EntityIndividual
Role
Chief Executive Officer
CEO, President
Shares27,228
Max Pricekr154.30
Buykr10,658,18912 Feb 19
Matti Alahuhta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares82,000
Max Pricekr130.40
Buykr4,976,85006 Feb 19
Joachim Rosenberg
EntityIndividual
Role
Unit Chairman
Executive VP
Shares38,000
Max Pricekr131.40
Sellkr976,01005 Feb 19
Joachim Rosenberg
EntityIndividual
Role
Unit Chairman
Executive VP
Shares7,549
Max Pricekr129.29
Sellkr253,79605 Feb 19
Jan Ohlsson
EntityIndividual
Role
Member of Management Board
Executive VP of Group Trucks Operations & Member of Group Executive Board
Shares1,963
Max Pricekr129.29
Sellkr263,36405 Feb 19
Bruno Blin
EntityIndividual
Role
Member of Management Board
Executive VP
Shares2,037
Max Pricekr129.29
Sellkr82,48705 Feb 19
Kina Wileke
EntityIndividual
Role
Member of Management Board
EVP of Group Communications & Sustainability Affairs and Member of the Group Executive Board
Shares638
Max Pricekr129.29
Sellkr478,24405 Feb 19
Sofia Frändberg
EntityIndividual
Role
Member of Management Board
EVP of Group Legal & Compliance
Shares3,699
Max Pricekr129.29
Sellkr1,265,62005 Feb 19
Martin Lundstedt
EntityIndividual
Role
Chief Executive Officer
CEO, President
Shares9,789
Max Pricekr129.29
Sellkr790,03305 Feb 19
Martin Weissburg
EntityIndividual
Role
Member of Management Board
Executive VP
Shares6,103
Max Pricekr129.45
Sellkr997,73105 Feb 19
Jan Gurander
EntityIndividual
Role
Member of Management Board
Deputy CEO & Member of the Group Executive Board
Shares7,717
Max Pricekr129.29
Buykr387,15004 Feb 19
Hanne de Mora
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max Pricekr129.05
Buykr104,300,13201 Feb 19
Carl-Henric Svanberg
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares800,000
Max Pricekr130.50

Ownership Breakdown

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


Management Team

  • Jan Gurander (58yo)

    Deputy CEO & Member of the Group Executive Board

    • Tenure: 5.8yrs
  • Jan Ytterberg (58yo)

    Executive VP of Group Finance

    • Tenure: 1.8yrs
  • Martin Weissburg (57yo)

    Executive VP

    • Tenure: 3.7yrs
  • Martin Lundstedt (52yo)

    CEO, President

    • Tenure: 4.1yrs
    • Compensation: kr43.45m
  • Sofia Frändberg (55yo)

    EVP of Group Legal & Compliance

    • Tenure: 6.6yrs
  • Joachim Rosenberg (49yo)

    Executive VP

    • Tenure: 0yrs
  • Kina Wileke (45yo)

    EVP of Group Communications & Sustainability Affairs and Member of the Group Executive Board

    • Tenure: 1.8yrs
  • Bruno Blin (56yo)

    Executive VP

    • Tenure: 3.7yrs
  • Roger Alm (57yo)

    Member of Group Executive Board

    • Tenure: 0.8yrs
  • Jan Ohlsson (66yo)

    Executive VP of Group Trucks Operations & Member of Group Executive Board

    • Tenure: 3.6yrs

Board Members

  • Jim Griffith (65yo)

    Independent Director

    • Tenure: 5.6yrs
  • Matti Alahuhta (67yo)

    Independent Director

    • Tenure: 5.6yrs
  • Carl-Henric Svanberg (67yo)

    Independent Chairman

    • Tenure: 7.6yrs
  • Hanne de Mora (59yo)

    Independent Director

    • Tenure: 9.6yrs
  • Paul Vikner (69yo)

    Vice Chairman - Mack Trucks Inc

    • Tenure: 11.6yrs
  • Martin Lundstedt (52yo)

    CEO, President

    • Tenure: 4.1yrs
    • Compensation: kr43.45m
  • Lars Ask (60yo)

    Employee Representative Director

    • Tenure: 3.6yrs
  • Mikael Sällström (60yo)

    Employee Representative Director

    • Tenure: 10.2yrs
  • Joachim Rosenberg (49yo)

    Executive VP

    • Tenure: 0yrs
  • Mats Henning (58yo)

    Employee Representative Director

    • Tenure: 5.5yrs

Company Information

AB Volvo (publ)'s company bio, 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: kr308.360b
  • Shares outstanding: 2.03b
  • Website: https://www.volvogroup.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VOLV.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDNov 1984
VOLVBSEP (The Stock Exchange Prague Co. Ltd.)YesSeries B SharesCZCZKNov 1984
VOLVBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKNov 1984
VOLV BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKNov 1984
VOL1DB (Deutsche Boerse AG)YesSeries B SharesDEEURNov 1984
0HTPLSE (London Stock Exchange)YesSeries B SharesGBSEKNov 1984
VOL3DB (Deutsche Boerse AG)Series A SharesDEEURJan 1988
VOLA.FOTCPK (Pink Sheets LLC)Series A SharesUSUSDJan 1988
VOLV AOM (OMX Nordic Exchange Stockholm)Series A SharesSESEKJan 1988
VOLVASBATS-CHIXE (BATS 'Chi-X Europe')Series A SharesGBSEKJan 1988
0MHWLSE (London Stock Exchange)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

Biography

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 O ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 20:55
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.