Loading...

AB Volvo

OM:VOLV B
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VOLV B
OM
SEK288B
Market Cap
  1. Home
  2. SE
  3. Capital Goods
Company description

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 last earnings update was 25 days ago. More info.


Add to Portfolio Compare Print
VOLV B Share Price and Events
7 Day Returns
1.1%
OM:VOLV B
0.2%
SE Machinery
0.8%
SE Market
1 Year Returns
-12.1%
OM:VOLV B
-15%
SE Machinery
-0.6%
SE Market
VOLV B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AB Volvo (VOLV B) 1.1% -5.6% 5.3% -12.1% 55.6% 44.6%
SE Machinery 0.2% -5.6% 6.2% -15% 44.9% 36.9%
SE Market 0.8% -2.3% 2.4% -0.6% 14.3% 18.2%
1 Year Return vs Industry and Market
  • VOLV B outperformed the Machinery industry which returned -15% over the past year.
  • VOLV B underperformed the Market in Sweden which returned -0.6% over the past year.
Price Volatility
VOLV B
Industry
5yr Volatility vs Market
Related Companies

VOLV B Value

 Is AB Volvo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AB Volvo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AB Volvo.

OM:VOLV B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:VOLV B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.052 (1 + (1- 22%) (53.35%))
1.328
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.328 * 5.96%)
8.35%

Discounted Cash Flow Calculation for OM:VOLV B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AB Volvo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:VOLV B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 8.35%)
2019 29,115.43 Analyst x7 26,872.25
2020 28,537.86 Analyst x7 24,309.90
2021 26,593.67 Analyst x6 20,908.40
2022 25,314.50 Est @ -4.81% 18,369.31
2023 24,495.14 Est @ -3.24% 16,405.30
2024 23,972.07 Est @ -2.14% 14,818.04
2025 23,644.97 Est @ -1.36% 13,489.78
2026 23,449.93 Est @ -0.82% 12,347.77
2027 23,345.08 Est @ -0.45% 11,345.49
2028 23,302.43 Est @ -0.18% 10,452.25
Present value of next 10 years cash flows SEK169,318.48
OM:VOLV B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK23,302.43 × (1 + 0.43%) ÷ (8.35% – 0.43%)
SEK295,752.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK295,752.11 ÷ (1 + 8.35%)10
SEK132,658.93
OM:VOLV B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK169,318.48 + SEK132,658.93
SEK301,977.42
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK301,977.42 / 2,032.91
SEK148.54
OM:VOLV B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK148.54
Current discount Discount to share price of SEK141.55
= -1 x (SEK141.55 - SEK148.54) / SEK148.54
4.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AB Volvo is available for.
Intrinsic value
5%
Share price is SEK141.55 vs Future cash flow value of SEK148.54
Current Discount Checks
For AB Volvo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AB Volvo's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • AB Volvo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AB Volvo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AB Volvo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:VOLV B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SEK SEK14.69
OM:VOLV B Share Price ** OM (2019-05-17) in SEK SEK141.55
Sweden Machinery Industry PE Ratio Median Figure of 17 Publicly-Listed Machinery Companies 16.29x
Sweden Market PE Ratio Median Figure of 323 Publicly-Listed Companies 16.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AB Volvo.

OM:VOLV B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:VOLV B Share Price ÷ EPS (both in SEK)

= 141.55 ÷ 14.69

9.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AB Volvo is good value based on earnings compared to the SE Machinery industry average.
  • AB Volvo is good value based on earnings compared to the Sweden market.
Price based on expected Growth
Does AB Volvo's expected growth come at a high price?
Raw Data
OM:VOLV B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
-9.5%per year
Sweden Machinery Industry PEG Ratio Median Figure of 14 Publicly-Listed Machinery Companies 2.71x
Sweden Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

OM:VOLV B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.63x ÷ -9.5%

-1.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AB Volvo earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on AB Volvo's assets?
Raw Data
OM:VOLV B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SEK SEK67.18
OM:VOLV B Share Price * OM (2019-05-17) in SEK SEK141.55
Sweden Machinery Industry PB Ratio Median Figure of 27 Publicly-Listed Machinery Companies 3.01x
Sweden Market PB Ratio Median Figure of 567 Publicly-Listed Companies 2.46x
OM:VOLV B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:VOLV B Share Price ÷ Book Value per Share (both in SEK)

= 141.55 ÷ 67.18

2.11x

* Primary Listing of AB Volvo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AB Volvo is good value based on assets compared to the SE Machinery industry average.
X
Value checks
We assess AB Volvo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. AB Volvo has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VOLV B Future Performance

 How is AB Volvo expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AB Volvo expected to grow at an attractive rate?
  • AB Volvo's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.4%.
Growth vs Market Checks
  • AB Volvo's earnings are expected to decrease over the next 1-3 years, this is below the Sweden market average.
  • AB Volvo's revenues are expected to decrease over the next 1-3 years, this is below the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:VOLV B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:VOLV B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts -9.5%
OM:VOLV B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts -2.3%
Sweden Machinery Industry Earnings Growth Rate Market Cap Weighted Average 2.1%
Sweden Machinery Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.6%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:VOLV B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:VOLV B Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 394,184 41,909 26,606 12
2020-12-31 396,319 40,955 26,543 14
2019-12-31 413,310 44,212 32,587 13
OM:VOLV B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-03-31 408,899 30,136 29,858
2018-12-31 390,834 31,187 24,897
2018-09-30 378,612 31,089 27,517
2018-06-30 362,731 29,823 25,463
2018-03-31 344,951 31,960 21,558
2017-12-31 332,738 37,599 20,484
2017-09-30 323,743 28,446 20,612
2017-06-30 316,101 34,567 17,796
2017-03-31 307,137 32,154 13,960
2016-12-31 301,914 17,559 13,147
2016-09-30 298,991 28,819 10,922
2016-06-30 303,542 19,388 11,404

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AB Volvo's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • AB Volvo's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:VOLV B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from AB Volvo Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:VOLV B Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 12.87 15.67 9.01 8.00
2020-12-31 13.06 15.10 9.64 10.00
2019-12-31 16.05 17.70 15.23 9.00
OM:VOLV B Past Financials Data
Date (Data in SEK Millions) EPS *
2019-03-31 14.69
2018-12-31 12.25
2018-09-30 13.54
2018-06-30 12.53
2018-03-31 10.61
2017-12-31 10.08
2017-09-30 10.14
2017-06-30 8.76
2017-03-31 6.87
2016-12-31 6.47
2016-09-30 5.38
2016-06-30 5.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AB Volvo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AB Volvo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AB Volvo has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VOLV B Past Performance

  How has AB Volvo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AB Volvo's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AB Volvo has delivered over 20% year on year earnings growth in the past 5 years.
  • AB Volvo's 1-year earnings growth exceeds its 5-year average (38.5% vs 34.6%)
  • AB Volvo's earnings growth has exceeded the SE Machinery industry average in the past year (38.5% vs 28.9%).
Earnings and Revenue History
AB Volvo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AB Volvo Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:VOLV B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 408,899.00 29,858.00 34,875.00 15,756.00
2018-12-31 390,834.00 24,897.00 34,397.00 15,899.00
2018-09-30 378,612.00 27,517.00 33,951.00 16,320.00
2018-06-30 362,731.00 25,463.00 33,477.00 16,438.00
2018-03-31 344,951.00 21,558.00 32,613.00 16,372.00
2017-12-31 332,738.00 20,484.00 32,098.00 16,098.00
2017-09-30 323,743.00 20,612.00 31,485.00 15,783.00
2017-06-30 316,101.00 17,796.00 30,969.00 15,627.00
2017-03-31 307,137.00 13,960.00 30,353.00 15,176.00
2016-12-31 301,914.00 13,147.00 30,028.00 14,631.00
2016-09-30 298,991.00 10,922.00 30,165.00 14,257.00
2016-06-30 303,542.00 11,404.00 30,354.00 14,466.00
2016-03-31 309,434.00 14,577.00 31,104.00 14,731.00
2015-12-31 312,515.00 15,058.00 31,585.00 15,368.00
2015-09-30 310,358.00 9,513.00 31,717.00 15,960.00
2015-06-30 304,271.00 7,941.00 31,745.00 16,265.00
2015-03-31 292,090.00 5,263.00 31,389.00 16,605.00
2014-12-31 282,948.00 2,099.00 31,145.00 16,656.00
2014-09-30 282,111.00 5,540.00 31,533.00 16,411.00
2014-06-30 279,769.00 5,428.00 32,135.00 16,319.00
2014-03-31 279,924.00 4,971.00 32,663.00 15,635.00
2013-12-31 272,622.00 3,583.00 32,728.00 15,124.00
2013-09-30 266,791.00 3,920.00 33,001.00 14,738.00
2013-06-30 270,168.00 3,934.00 32,557.00 14,305.00
2013-03-31 280,355.00 6,810.00 32,338.00 14,591.00
2012-12-31 299,814.00 11,160.00 32,256.00 14,635.00
2012-09-30 315,510.00 15,060.00 31,511.00 14,220.00
2012-06-30 320,574.00 17,486.00 31,362.00 14,149.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst AB Volvo has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • AB Volvo used its assets less efficiently than the SE Machinery industry average last year based on Return on Assets.
  • AB Volvo has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AB Volvo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AB Volvo has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VOLV B Health

 How is AB Volvo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AB Volvo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AB Volvo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AB Volvo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AB Volvo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AB Volvo Company Filings, last reported 1 month ago.

OM:VOLV B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 139,319.00 153,475.00 54,237.00
2018-12-31 125,831.00 136,189.00 49,276.00
2018-09-30 124,036.00 133,618.00 35,709.00
2018-06-30 118,681.00 135,274.00 35,366.00
2018-03-31 116,548.00 133,663.00 38,985.00
2017-12-31 107,802.00 127,908.00 37,391.00
2017-09-30 102,805.00 127,866.00 28,081.00
2017-06-30 100,250.00 131,352.00 26,398.00
2017-03-31 103,171.00 141,661.00 32,288.00
2016-12-31 97,764.00 141,465.00 26,549.00
2016-09-30 88,752.00 144,155.00 25,794.00
2016-06-30 85,827.00 142,554.00 21,365.00
2016-03-31 88,448.00 136,946.00 21,832.00
2015-12-31 85,611.00 132,922.00 25,981.00
2015-09-30 82,096.00 145,842.00 23,459.00
2015-06-30 81,341.00 143,895.00 23,667.00
2015-03-31 82,344.00 156,024.00 31,932.00
2014-12-31 80,048.00 148,590.00 34,520.00
2014-09-30 81,060.00 143,003.00 22,281.00
2014-06-30 77,825.00 137,449.00 20,291.00
2014-03-31 78,259.00 133,574.00 24,269.00
2013-12-31 77,365.00 135,434.00 29,538.00
2013-09-30 76,035.00 140,079.00 26,142.00
2013-06-30 74,834.00 139,846.00 28,538.00
2013-03-31 76,049.00 134,754.00 28,520.00
2012-12-31 77,051.00 131,533.00 28,336.00
2012-09-30 85,970.00 135,285.00 22,841.00
2012-06-30 87,382.00 138,875.00 31,045.00
  • AB Volvo's level of debt (110.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (170.7% vs 110.2% today).
  • Debt is not well covered by operating cash flow (19.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 27.1x coverage).
X
Financial health checks
We assess AB Volvo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AB Volvo has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VOLV B Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.53%
Current annual income from AB Volvo dividends. Estimated to be 4.73% next year.
If you bought SEK2,000 of AB Volvo shares you are expected to receive SEK71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AB Volvo's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.79%).
  • AB Volvo's dividend is below the markets top 25% of dividend payers in Sweden (4.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:VOLV B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Sweden Machinery Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.8%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 243 Stocks 3.2%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.1%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.8%
Sweden Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:VOLV B Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 6.65 14.00
2020-12-31 6.42 16.00
2019-12-31 7.03 16.00
OM:VOLV B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-04-03 5.000 3.426
2018-03-02 4.250 3.010
2017-04-06 3.250 2.166
2016-04-06 3.000 3.022
2015-04-01 3.000 3.279
2014-03-13 3.000 3.332
2014-02-06 3.000 3.162
2013-04-04 3.000 3.290
2012-04-04 3.000 3.374
2011-04-06 2.500 2.856
2010-10-22 0.000 0.000
2010-10-15 0.000 0.000
2010-07-22 0.000 0.000
2010-04-23 0.000 0.000
2010-03-31 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, AB Volvo has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but AB Volvo only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of AB Volvo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess AB Volvo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AB Volvo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AB Volvo has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VOLV B Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Lundstedt
COMPENSATION SEK43,453,505
AGE 51
TENURE AS CEO 3.6 years
CEO Bio

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 Officer and President at Scania AB (publ) (alternate name Scania AB), parent company of Scania Commercial Vehicles India Pvt. Ltd., from September 1, 2012 to April 22, 2015 and served as its Member of the Executive Board from May 2007 to April 22, 2015. He has over 15 years of experience from international business and is since September 2012. At Scania, he spent 20 years in different positions. Mr. Lundstedt commenced his career at Scania working within the Engine production as Production Engineer and thereafter as Manager in the field of Engine production. Mr. Lundstedt joined Scania in 1992 as a trainee and served as its Project leader Scania do Brasil since 1995; Manager Industrial Engineering, Scania Engine Production since 1996; Production Manager Scania Engine Production since 1997; and Head of Basic Engine Development since 1999. In 2001, he became Managing Director of Scania Production Angers in France, appointed as Head of Product Marketing in 2005 and appointed as Senior Vice President and Head of Trucks in 2006 at Scania AB. He served as Executive Vice President and Head of Franchise & Factory Sales at Scania AB until June 2012. He served as a Senior Vice President of Franchise and Factory Sales Trucks and Group Vice President of Scania AB. He serves as the Chairman of Partex Marking Systems AB. He has been a Director of AB Volvo (publ) since April 06, 2016 and AB since April 19, 2012. He serves as Chairman of Permobil AB. He served as a Director of Scania AB (publ) since May 3, 2013. He holds an MSc in Industrial Management and Technology.

CEO Compensation
  • Martin's compensation has been consistent with company performance over the past year.
  • Martin's remuneration is higher than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the AB Volvo management team in years:

3.2
Average Tenure
55.5
Average Age
  • The tenure for the AB Volvo management team is about average.
Management Team

Martin Lundstedt

TITLE
CEO, President
COMPENSATION
SEK43M
AGE
51
TENURE
3.6 yrs

Jan Ytterberg

TITLE
Executive VP of Group Finance
AGE
57
TENURE
1.3 yrs

Martin Weissburg

TITLE
Executive VP
AGE
56
TENURE
3.2 yrs

Joachim Rosenberg

TITLE
Executive VP
AGE
48
TENURE
7.3 yrs

Kina Wileke

TITLE
EVP of Group Communications & Sustainability Affairs and Member of the Group Executive Board
AGE
44
TENURE
1.3 yrs

Bruno Blin

TITLE
Executive VP
AGE
55
TENURE
3.2 yrs

Sofia Frändberg

TITLE
EVP of Group Legal & Compliance
AGE
54
TENURE
6.1 yrs

Jan Gurander

TITLE
Deputy CEO & Member of the Group Executive Board
AGE
57
TENURE
5.3 yrs

Roger Alm

TITLE
Member of Group Executive Board
AGE
56
TENURE
0.3 yrs

Jan Ohlsson

TITLE
Executive VP of Group Trucks Operations & Member of Group Executive Board
AGE
65
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the AB Volvo board of directors in years:

5.1
Average Tenure
59
Average Age
  • The tenure for the AB Volvo board of directors is about average.
Board of Directors

Carl-Henric Svanberg

TITLE
Chairman
AGE
66
TENURE
7.1 yrs

Martin Lundstedt

TITLE
CEO, President
COMPENSATION
SEK43M
AGE
51
TENURE
3.1 yrs

Joachim Rosenberg

TITLE
Executive VP
AGE
48

Paul Vikner

TITLE
Vice Chairman - Mack Trucks Inc
AGE
68
TENURE
11.1 yrs

Hanne de Mora

TITLE
Independent Director
AGE
58
TENURE
9.1 yrs

Lars Ask

TITLE
Employee Representative Director
AGE
59
TENURE
3.1 yrs

Mikael Sällström

TITLE
Employee Representative Director
AGE
59
TENURE
9.7 yrs

Mats Henning

TITLE
Employee Representative Director
AGE
57
TENURE
5 yrs

Matti Alahuhta

TITLE
Independent Director
AGE
66
TENURE
5.1 yrs

Jim Griffith

TITLE
Independent Director
AGE
64
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AB Volvo insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
29. Apr 19 Buy Jan Ohlsson Individual 25. Apr 19 25. Apr 19 7,168 SEK154.30 SEK1,106,057
29. Apr 19 Buy Bruno Blin Individual 25. Apr 19 25. Apr 19 9,880 SEK154.30 SEK1,524,531
29. Apr 19 Buy Kina Wileke Individual 25. Apr 19 25. Apr 19 4,411 SEK154.30 SEK680,638
29. Apr 19 Buy Andrea Fuder Individual 25. Apr 19 25. Apr 19 14,817 SEK154.30 SEK2,286,334
29. Apr 19 Buy Joachim Rosenberg Individual 25. Apr 19 25. Apr 19 17,075 SEK154.30 SEK2,634,754
29. Apr 19 Buy Sofia Frändberg Individual 25. Apr 19 25. Apr 19 5,838 SEK154.30 SEK900,831
29. Apr 19 Buy Lars Stenqvist Individual 25. Apr 19 25. Apr 19 9,730 SEK154.30 SEK1,501,386
29. Apr 19 Buy Melker Jernberg Individual 25. Apr 19 25. Apr 19 11,028 SEK154.30 SEK1,701,673
29. Apr 19 Buy Martin Lundstedt Individual 25. Apr 19 25. Apr 19 27,228 SEK154.30 SEK4,201,411
29. Apr 19 Buy Martin Weissburg Individual 25. Apr 19 25. Apr 19 17,399 SEK154.30 SEK2,684,749
29. Apr 19 Buy Jan Gurander Individual 25. Apr 19 25. Apr 19 11,869 SEK154.30 SEK1,831,444
12. Feb 19 Buy Matti Alahuhta Individual 11. Feb 19 11. Feb 19 82,000 SEK130.40 SEK10,658,189
06. Feb 19 Buy Joachim Rosenberg Individual 05. Feb 19 05. Feb 19 38,000 SEK131.40 SEK4,976,850
05. Feb 19 Sell Jan Ohlsson Individual 01. Feb 19 01. Feb 19 -1,963 SEK129.29 SEK-253,796
05. Feb 19 Sell Bruno Blin Individual 01. Feb 19 01. Feb 19 -2,037 SEK129.29 SEK-263,364
05. Feb 19 Sell Kina Wileke Individual 01. Feb 19 01. Feb 19 -638 SEK129.29 SEK-82,487
05. Feb 19 Sell Joachim Rosenberg Individual 01. Feb 19 01. Feb 19 -7,549 SEK129.29 SEK-976,010
05. Feb 19 Sell Sofia Frändberg Individual 01. Feb 19 01. Feb 19 -3,699 SEK129.29 SEK-478,244
05. Feb 19 Sell Martin Lundstedt Individual 01. Feb 19 01. Feb 19 -9,789 SEK129.29 SEK-1,265,620
05. Feb 19 Sell Martin Weissburg Individual 01. Feb 19 01. Feb 19 -6,103 SEK129.45 SEK-790,033
05. Feb 19 Sell Jan Gurander Individual 01. Feb 19 01. Feb 19 -7,717 SEK129.29 SEK-997,731
04. Feb 19 Buy Hanne de Mora Individual 31. Jan 19 31. Jan 19 3,000 SEK129.05 SEK387,150
01. Feb 19 Buy Carl-Henric Svanberg Individual 31. Jan 19 31. Jan 19 800,000 SEK130.50 SEK104,300,132
02. Nov 18 Buy James Griffith Individual 31. Oct 18 31. Oct 18 20,000 SEK135.85 SEK2,711,030
01. Nov 18 Sell Bruno Blin Individual 31. Oct 18 31. Oct 18 -7,909 SEK136.00 SEK-1,075,624
29. Oct 18 Sell Jan Ohlsson Individual 26. Oct 18 26. Oct 18 -1,743 SEK131.83 SEK-229,772
29. Oct 18 Sell Bruno Blin Individual 26. Oct 18 26. Oct 18 -1,848 SEK131.83 SEK-243,614
29. Oct 18 Sell Kina Wileke Individual 26. Oct 18 26. Oct 18 -1,250 SEK131.83 SEK-164,782
29. Oct 18 Sell Joachim Rosenberg Individual 26. Oct 18 26. Oct 18 -6,703 SEK131.83 SEK-883,628
29. Oct 18 Sell Martin Weissburg Individual 26. Oct 18 26. Oct 18 -5,392 SEK131.12 SEK-707,005
29. Oct 18 Sell Kerstin Renard Individual 26. Oct 18 26. Oct 18 -3,882 SEK131.83 SEK-511,747
29. Oct 18 Sell Jan Gurander Individual 26. Oct 18 26. Oct 18 -6,852 SEK131.83 SEK-903,270
24. Oct 18 Buy AB Industrivärden (publ) Company 22. Oct 18 22. Oct 18 3,600,000 SEK135.95 SEK488,426,281
23. Oct 18 Buy Melker Jernberg Individual 23. Oct 18 23. Oct 18 3,000 SEK131.30 SEK393,900
19. Oct 18 Buy Martin Lundstedt Individual 19. Oct 18 19. Oct 18 15,000 SEK131.40 SEK1,968,566
22. Jul 18 Buy Martin Lundstedt Individual 20. Jul 18 20. Jul 18 10,000 SEK147.60 SEK1,475,362
23. Jul 18 Sell Jan Ohlsson Individual 20. Jul 18 20. Jul 18 -1,497 SEK150.99 SEK-226,032
23. Jul 18 Sell Bruno Blin Individual 20. Jul 18 20. Jul 18 -1,542 SEK150.99 SEK-232,827
23. Jul 18 Sell Joachim Rosenberg Individual 20. Jul 18 20. Jul 18 -5,756 SEK150.99 SEK-869,098
23. Jul 18 Sell Sofia Frändberg Individual 20. Jul 18 20. Jul 18 -2,821 SEK150.99 SEK-425,943
23. Jul 18 Sell Martin Weissburg Individual 20. Jul 18 20. Jul 18 -4,437 SEK150.98 SEK-669,898
23. Jul 18 Sell Kerstin Renard Individual 20. Jul 18 20. Jul 18 -3,331 SEK150.99 SEK-502,948
23. Jul 18 Sell Jan Gurander Individual 20. Jul 18 20. Jul 18 -5,883 SEK150.99 SEK-888,274
29. May 18 Buy Jan Ohlsson Individual 25. May 18 25. May 18 8,831 SEK161.39 SEK1,425,209
29. May 18 Buy Bruno Blin Individual 25. May 18 25. May 18 9,907 SEK161.39 SEK1,598,861
29. May 18 Buy Kina Wileke Individual 25. May 18 25. May 18 2,260 SEK161.39 SEK364,735
29. May 18 Buy Andrea Fuder Individual 25. May 18 25. May 18 19,431 SEK161.39 SEK3,135,911
29. May 18 Buy Joachim Rosenberg Individual 25. May 18 25. May 18 21,895 SEK161.39 SEK3,533,568
29. May 18 Buy Sofia Frändberg Individual 25. May 18 25. May 18 7,047 SEK161.39 SEK1,137,294
29. May 18 Buy Lars Stenqvist Individual 25. May 18 25. May 18 12,291 SEK161.39 SEK1,983,608
29. May 18 Buy Melker Jernberg Individual 25. May 18 25. May 18 1,249 SEK161.39 SEK201,572
29. May 18 Buy Claes Nilsson Individual 25. May 18 25. May 18 8,919 SEK161.39 SEK1,439,411
29. May 18 Buy Martin Lundstedt Individual 25. May 18 25. May 18 33,644 SEK161.39 SEK5,429,704
29. May 18 Buy Dennis Slagle Individual 25. May 18 25. May 18 20,846 SEK161.39 SEK3,364,273
29. May 18 Buy Kerstin Renard Individual 25. May 18 25. May 18 7,450 SEK161.39 SEK1,202,333
29. May 18 Buy Jan Gurander Individual 25. May 18 25. May 18 15,364 SEK161.39 SEK2,479,550
X
Management checks
We assess AB Volvo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AB Volvo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VOLV B News

Simply Wall St News

VOLV B Company Info

Description

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 under the Volvo, Prevost, Nova Bus, and UD 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 systems for leisure and commercial boats, as well as for industrial applications, such as power generation and container trucks under the Volvo Penta brand name. Further, it provides financial solutions, such as customer financing and leasing, dealer financing, and insurance; rental, preventive maintenance, assistance, and IT services; spare parts; and transport information systems. The company offers its products and services through a network of dealerships and workshops. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

Details
Name: AB Volvo (publ)
VOLV B
Exchange: OM
Founded: 1915
SEK287,690,420,720
2,032,914,358
Website: http://www.volvogroup.com
Address: AB Volvo (publ)
Gropegårdsgatan 2,
Gothenburg,
Västra Götaland County, 417 15,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM VOLV B Series B Shares OMX Nordic Exchange Stockholm SE SEK 09. Nov 1984
OTCPK VOLV.F Series B Shares Pink Sheets LLC US USD 09. Nov 1984
DB VOL1 Series B Shares Deutsche Boerse AG DE EUR 09. Nov 1984
LSE 0HTP Series B Shares London Stock Exchange GB SEK 09. Nov 1984
SEP VOLVB Series B Shares The Stock Exchange Prague Co. Ltd. CZ CZK 09. Nov 1984
BATS-CHIXE VOLVBS Series B Shares BATS 'Chi-X Europe' GB SEK 09. Nov 1984
OTCPK VLVL.Y UNSP ADR EACH REP 1 ORD SHS Pink Sheets LLC US USD 15. Jan 2016
OM VOLV A Series A Shares OMX Nordic Exchange Stockholm SE SEK 25. Jan 1988
OTCPK VOLA.F Series A Shares Pink Sheets LLC US USD 25. Jan 1988
DB VOL3 Series A Shares Deutsche Boerse AG DE EUR 25. Jan 1988
DB VOL4 UNSP ADR EACH REP 1 ORD SHS Deutsche Boerse AG DE EUR 15. Jan 2016
LSE 0MHW Series A Shares London Stock Exchange GB SEK 25. Jan 1988
BATS-CHIXE VOLVAS Series A Shares BATS 'Chi-X Europe' GB SEK 25. Jan 1988
Number of employees
Current staff
Staff numbers
92,500
AB Volvo employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 21:25
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.