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.
Excellent balance sheet and good value.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: VOLV B underperformed the Swedish Machinery industry which returned 21.3% over the past year.
Return vs Market: VOLV B underperformed the Swedish Market which returned 8.3% over the past year.
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
1 month ago | Simply Wall StAB Volvo (STO:VOLV B) Has Compensated Shareholders With A Respectable 61% Return On Their Investment
1 month ago | Simply Wall StIs AB Volvo (publ) (STO:VOLV B) Trading At A 21% Discount?
1 month ago | Simply Wall StWhat Type Of Shareholder Owns AB Volvo (publ)'s (STO:VOLV B)?
Is AB Volvo undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VOLV B (SEK157.45) is trading above our estimate of fair value (SEK115.98)
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 (10.7x) compared to the SE Machinery industry average (18x).
PE vs Market: VOLV B is good value based on its PE Ratio (10.7x) compared to the Swedish market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: VOLV B is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: VOLV B is good value based on its PB Ratio (2.2x) compared to the SE Machinery industry average (2.8x).
How is AB Volvo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VOLV B's forecast earnings growth (26.5% per year) is above the savings rate (0.5%).
Earnings vs Market: VOLV B's earnings (26.5% per year) are forecast to grow faster than the Swedish market (17.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VOLV B's revenue (5.5% per year) is forecast to grow slower than the Swedish market (6.2% per year).
High Growth Revenue: VOLV B's revenue (5.5% 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 low in 3 years time (14.7%).
How has AB Volvo performed over the past 5 years?
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 (7.2%) are lower than last year (7.3%).
Past Earnings Growth Analysis
Earnings Trend: VOLV B's earnings have grown significantly by 27.9% per year over the past 5 years.
Accelerating Growth: VOLV B's earnings growth over the past year (0.1%) is below its 5-year average (27.9% per year).
Earnings vs Industry: VOLV B earnings growth over the past year (0.1%) exceeded the Machinery industry -7.2%.
Return on Equity
High ROE: Whilst VOLV B's Return on Equity (20.34%) is high, this metric is skewed due to their high level of debt.
How is AB Volvo's financial position?
Financial Position Analysis
Short Term Liabilities: VOLV B's short term assets (SEK302.6B) exceed its short term liabilities (SEK220.4B).
Long Term Liabilities: VOLV B's short term assets (SEK302.6B) exceed its long term liabilities (SEK180.5B).
Debt to Equity History and Analysis
Debt Level: VOLV B's debt to equity ratio (110.9%) is considered high.
Reducing Debt: VOLV B's debt to equity ratio has reduced from 189.2% to 110.9% over the past 5 years.
Debt Coverage: VOLV B's debt is well covered by operating cash flow (21.2%).
Interest Coverage: VOLV B's interest payments on its debt are well covered by EBIT (38.9x coverage).
What is AB Volvo current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VOLV B's dividend (3.49%) is higher than the bottom 25% of dividend payers in the Swedish market (1.49%).
High Dividend: VOLV B's dividend (3.49%) is low compared to the top 25% of dividend payers in the Swedish market (4.97%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, VOLV B has been paying a dividend for less than 10 years.
Growing Dividend: VOLV B's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.4%), 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 (65.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Martin Lundstedt (53yo)
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 ($USD5.65M) is above average for companies of similar size in the Swedish market ($USD2.66M).
Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.
|CEO, President||4.75yrs||kr51.61m||0.0094% SEK30.2m|
|Executive VP of Group Finance||2.5yrs||no data||0.00010% SEK320.1k|
|Executive VP||4.33yrs||no data||0.0055% SEK17.6m|
|Executive VP||no data||no data||0.0094% SEK30.0m|
|Executive VP of Group Communication & Member of the Group Executive Board||2.5yrs||no data||0.00075% SEK2.4m|
|Executive VP||4.33yrs||no data||0.0012% SEK4.0m|
|EVP of Group Legal & Compliance||7.25yrs||no data||0.0034% SEK10.9m|
|Deputy CEO & Member of the Group Executive Board||6.5yrs||no data||0.0036% SEK11.6m|
|Executive VP||0.50yr||no data||0.0022% SEK7.1m|
|Member of Group Executive Board||1.5yrs||no data||0.00076% SEK2.4m|
|Executive VP of Group Trucks Operations & Member of Group Executive Board||4.25yrs||no data||0.0022% SEK7.2m|
|Chief Purchasing Officer||3.5yrs||no data||0.0019% SEK6.0m|
Experienced Management: VOLV B's management team is considered experienced (4.3 years average tenure).
|CEO, President||4.75yrs||kr51.61m||0.0094% SEK30.2m|
|Executive VP||no data||no data||0.0094% SEK30.0m|
|Independent Director||5.25yrs||no data||no data|
|Independent Director||6.25yrs||no data||0.0020% SEK6.3m|
|Independent Director||6.25yrs||no data||0.0072% SEK23.0m|
|Independent Chairman||8.25yrs||no data||0.098% SEK314.8m|
|Independent Director||10.25yrs||no data||0.00090% SEK2.9m|
|Vice Chairman - Mack Trucks Inc||12.25yrs||no data||no data|
|Independent Director||6.25yrs||no data||no data|
|Employee Representative Director||4.25yrs||no data||no data|
|Employee Representative Director||10.83yrs||no data||0.000010% SEK32.0k|
|Employee Representative Director||6.17yrs||no data||0.000040% SEK128.0k|
Experienced Board: VOLV B's board of directors are considered experienced (6.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AB Volvo (publ)'s company bio, employee growth, exchange listings and data sources
- Name: AB Volvo (publ)
- Ticker: VOLV B
- Exchange: OM
- Founded: 1915
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: kr320.054b
- Shares outstanding: 2.03b
- Website: https://www.volvogroup.com
Number of Employees
- AB Volvo (publ)
- Gropegårdsgatan 2
- Västra Götaland County
- 417 15
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|0HTP||LSE (London Stock Exchange)||Yes||Series B Shares||GB||SEK||Nov 1984|
|VOLV B||OM (OMX Nordic Exchange Stockholm)||Yes||Series B Shares||SE||SEK||Nov 1984|
|VOLV.F||OTCPK (Pink Sheets LLC)||Yes||Series B Shares||US||USD||Nov 1984|
|VOL1||DB (Deutsche Boerse AG)||Yes||Series B Shares||DE||EUR||Nov 1984|
|VOLVBS||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Series B Shares||GB||SEK||Nov 1984|
|VOLVB||SEP (The Stock Exchange Prague Co. Ltd.)||Yes||Series B Shares||CZ||CZK||Nov 1984|
|0MHW||LSE (London Stock Exchange)||Series A Shares||GB||SEK||Jan 1988|
|VOLV A||OM (OMX Nordic Exchange Stockholm)||Series A Shares||SE||SEK||Jan 1988|
|VOLA.F||OTCPK (Pink Sheets LLC)||Series A Shares||US||USD||Jan 1988|
|VOL3||DB (Deutsche Boerse AG)||Series A Shares||DE||EUR||Jan 1988|
|VOLVAS||BATS-CHIXE (BATS 'Chi-X Europe')||Series A Shares||GB||SEK||Jan 1988|
|VLVL.Y||OTCPK (Pink Sheets LLC)||UNSP ADR EACH REP 1 ORD SHS||US||USD||Jan 2016|
|VOL4||DB (Deutsche Boerse AG)||UNSP ADR EACH REP 1 ORD SHS||DE||EUR||Jan 2016|
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, and distribution purposes under the Volvo, UD Trucks, Renault Trucks, Mack, Eicher, and Dongfeng 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 haulers, wheel loaders, road construction machines, and compact equipment under the brand names of Volvo, SDLG, and Terex Trucks. In addition, the company offers engines and power solutions for leisure and commercial boats, as well as for power generation, industrial, and off-road applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repair, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Samsung SDI Co to develop battery packs for its electric trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/14 20:51|
|End of Day Share Price||2020/07/14 00:00|
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.