NYSE:ALV

Stock Analysis Report

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Executive Summary

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

ALV

-1.1%

US Auto Components

2.5%

US Market


1 Year Return

-0.5%

ALV

-1.7%

US Auto Components

15.9%

US Market

Return vs Industry: ALV exceeded the US Auto Components industry which returned -3.1% over the past year.

Return vs Market: ALV underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

ALVIndustryMarket
7 Day-4.3%-1.1%2.5%
30 Day2.9%6.0%5.8%
90 Day17.0%26.8%18.2%
1 Year2.0%-0.5%-0.6%-1.7%18.4%15.9%
3 Year-7.8%-38.3%-17.3%-26.1%39.9%30.9%
5 Year-2.4%-37.5%4.8%-11.0%72.9%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALV ($67.13) is trading above our estimate of fair value ($61.57)

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


Price To Earnings Ratio

PE vs Industry: ALV is poor value based on its PE Ratio (41.5x) compared to the US Auto Components industry average (21.5x).

PE vs Market: ALV is poor value based on its PE Ratio (41.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ALV is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ALV is overvalued based on its PB Ratio (3x) compared to the US Auto Components industry average (1.6x).


Next Steps

Future Growth

How is Autoliv forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

52.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALV's forecast earnings growth (52.4% per year) is above the savings rate (2.2%).

Earnings vs Market: ALV's earnings (52.4% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALV's revenue (11.1% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ALV's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALV's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has Autoliv performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALV has a large one-off loss of $306.8M impacting its June 30 2020 financial results.

Growing Profit Margin: ALV's current net profit margins (2%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: ALV's earnings have declined by 9.5% per year over the past 5 years.

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

Earnings vs Industry: ALV had negative earnings growth (-42.3%) over the past year, making it difficult to compare to the Auto Components industry average (-12.7%).


Return on Equity

High ROE: ALV's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Autoliv's financial position?


Financial Position Analysis

Short Term Liabilities: ALV's short term assets ($3.4B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: ALV's short term assets ($3.4B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: ALV's debt to equity ratio (156.5%) is considered high.

Reducing Debt: ALV's debt to equity ratio has increased from 47.9% to 156.5% over the past 5 years.

Debt Coverage: ALV's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: ALV's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Autoliv current dividend yield, its reliability and sustainability?

2.28%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ALV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ALV is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Mikael Bratt (53 yo)

2.17yrs

Tenure

US$2,399,180

Compensation

Mr. Mikael Bratt has been President and Chief Executive Officer of Autoliv, Inc. since June 29, 2018 and has been its Director since September 20, 2018. Mr. Bratt was the President of Passive Safety at Aut ...


CEO Compensation Analysis

Compensation vs Market: Mikael's total compensation ($USD2.40M) is below average for companies of similar size in the US market ($USD7.31M).

Compensation vs Earnings: Mikael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mikael Bratt
President2.17yrsUS$2.40m0.0047%
$ 275.0k
Jordi Lombarte
Chief Technology Officer2.58yrsUS$939.86k0.0022%
$ 131.3k
Bradley Murray
President of Autoliv Asia (AAS)2.58yrsUS$2.80m0.0012%
$ 72.7k
Fredrik Westin
CFO & EVP of Finance0.42yrno datano data
Magnus Jarlegren
Executive Vice President of Operations1yrno data0.00037%
$ 21.7k
Anders Trapp
Vice President of Investor Relationsno datano datano data
Anthony Nellis
Executive VP of Legal Affairsno datano data0.0018%
$ 104.4k
Stina Thorman
Acting Vice President of Corporate Communicationsno datano datano data
Per Ericson
Executive Vice President of Human Resources & Sustainabilityno datano datano data
Svante Mogefors
Executive Vice President of Quality1yrno data0.011%
$ 673.6k
Franck Roussel
Senior Vice President of Steering Wheels Product Line5.92yrsno datano data
Jennifer Cheng
President of Autoliv China (ACH)2.58yrsno data0.0022%
$ 130.7k

2.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: ALV's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mikael Bratt
President2.17yrsUS$2.40m0.0047%
$ 275.0k
Ola Boström
VP of Research & Member of Research Advisory Boardno datano datano data
James Ringler
Lead Independent Director3.25yrsUS$300.00k0.0095%
$ 559.3k
Jan Olsson
Member of Research Advisory Boardno datano datano data
Leif Johansson
Independent Director4.5yrsUS$260.00k0.019%
$ 1.1m
David Kepler
Independent Director5.5yrsUS$260.00k0.0059%
$ 348.2k
Franz-Josef Kortüm
Independent Director6.42yrsUS$240.00k0.0062%
$ 362.3k
Jan Carlson
Chairman6.25yrsUS$390.00k0.076%
$ 4.4m
Xiaozhi Liu
Independent Director8.75yrsUS$240.00k0.0080%
$ 466.1k
Christopher Urmson
Member of Research Advisory Board4.67yrsno datano data
Natasha Merat
Member of Research Advisory Board4.67yrsno datano data
Thaddeus Senko
Independent Director2.42yrsUS$270.00k0.0027%
$ 157.1k

4.7yrs

Average Tenure

66yo

Average Age

Experienced Board: ALV's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALV insiders have only sold shares 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

Autoliv, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Autoliv, Inc.
  • Ticker: ALV
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$5.863b
  • Shares outstanding: 87.33m
  • Website: https://www.autoliv.com

Number of Employees


Location

  • Autoliv, Inc.
  • World Trade Center
  • Klarabergsviadukten 70
  • Stockholm
  • Stockholm County
  • 111 64
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALIV SDBOM (OMX Nordic Exchange Stockholm)SDR USD1SESEKAug 1994
0MI0LSE (London Stock Exchange)SDR USD1GBSEKAug 1994
LIVSDB (Deutsche Boerse AG)SDR USD1DEEURAug 1994
ALIVSBATS-CHIXE (BATS 'Chi-X Europe')SDR USD1GBSEKAug 1994
ALVNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1997
LIVDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1997
0HJHLSE (London Stock Exchange)YesCommon SharesGBUSDApr 1997

Biography

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry. The company offers passive safety systems, including modules and componen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 23:58
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.