Autoliv (NYSE:ALV) - Share price, News & Analysis

ALV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	4/6
Financial Health	5/6
Dividends	3/6

ALV Stock Overview

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia.

Rewards

Trading at 56.5% below our estimate of its fair value

Earnings are forecast to grow 27.13% per year

Earnings grew by 34.2% over the past year

Risk Analysis

Dividend of 3.35% is not well covered by earnings

Autoliv Competitors

Aptiv

NYSE:APTV

US$25.4b

BorgWarner

NYSE:BWA

US$9.1b

Lear

NYSE:LEA

US$7.9b

Dorman Products

NasdaqGS:DORM

US$3.0b

Price History & Performance

Summary of all time highs, changes and price drops for Autoliv
Historical stock prices
Current Share Price	US$76.44
52 Week High	US$110.59
52 Week Low	US$69.69
Beta	1.62
1 Month Change	-1.65%
3 Month Change	-23.02%
1 Year Change	-25.83%
3 Year Change	15.82%
5 Year Change	-30.31%
Change since IPO	116.09%

Recent News & Updates

May 07

Autoliv: A Market Leader At A Reasonable Price

Autoliv is a global leader in passive safety equipment for the automotive space. Fundamental performance has not been great in recent years, but it has been far from bad. In all, the stock seems to be slightly undervalued, even though it is closer to fair value compared to similar businesses.

Shareholder Returns

	ALV	US Auto Components	US Market
7D	2.7%	-2.6%	-2.7%
1Y	-25.8%	-34.2%	-12.9%

Return vs Industry: ALV exceeded the US Auto Components industry which returned -32.4% over the past year.

Return vs Market: ALV underperformed the US Market which returned -12.7% over the past year.

Price Volatility

Is ALV's price volatile compared to industry and market?
ALV volatility
ALV Average Weekly Movement	6.9%
Auto Components Industry Average Movement	8.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: ALV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ALV's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1953	58,709	Mikael Bratt	https://www.autoliv.com

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, and battery cut-off switches, as well as anti-whiplash systems and pedestrian protection systems, and connected safety services and solutions for riders of powered two wheelers. The company primarily serves car manufacturers.

Autoliv Fundamentals Summary

How do Autoliv's earnings and revenue compare to its market cap?
ALV fundamental statistics
Market Cap	US$6.68b
Earnings (TTM)	US$361.00m
Revenue (TTM)	US$8.11b

18.5x

P/E Ratio

0.8x

P/S Ratio

Is ALV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALV income statement (TTM)
Revenue	US$8.11b
Cost of Revenue	US$6.77b
Gross Profit	US$1.34b
Other Expenses	US$980.00m
Earnings	US$361.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 22, 2022

Earnings per share (EPS)	4.13
Gross Margin	16.53%
Net Profit Margin	4.45%
Debt/Equity Ratio	74.6%

How did ALV perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

61%

Payout Ratio

Does ALV pay a reliable dividends?

See ALV dividend history and benchmarks

When do you need to buy ALV by to receive an upcoming dividend?
Autoliv dividend dates
Ex Dividend Date	May 23 2022
Dividend Pay Date	Jun 13 2022
Days until Ex dividend	2 days
Days until Dividend pay date	23 days

Does ALV pay a reliable dividends?

See ALV dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ALV ($76.44) is trading below our estimate of fair value ($175.65)

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

Price To Earnings Ratio

PE vs Industry: ALV is poor value based on its PE Ratio (18.5x) compared to the US Auto Components industry average (14.8x).

PE vs Market: ALV is poor value based on its PE Ratio (18.5x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: ALV is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: ALV is overvalued based on its PB Ratio (2.5x) compared to the US Auto Components industry average (1.7x).

Future Growth

How is Autoliv forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

27.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALV's forecast earnings growth (27.1% per year) is above the savings rate (1.9%).

Earnings vs Market: ALV's earnings (27.1% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: ALV's revenue (8.5% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ALV's revenue (8.5% 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 (26.1%)

Past Performance

How has Autoliv performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-13.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALV has high quality earnings.

Growing Profit Margin: ALV's current net profit margins (4.5%) are higher than last year (3.4%).

Past Earnings Growth Analysis

Earnings Trend: ALV's earnings have declined by 13% per year over the past 5 years.

Accelerating Growth: ALV's earnings growth over the past year (34.2%) exceeds its 5-year average (-13% per year).

Earnings vs Industry: ALV earnings growth over the past year (34.2%) exceeded the Auto Components industry 24.5%.

Return on Equity

High ROE: ALV's Return on Equity (13.6%) is considered low.

Financial Health

How is Autoliv's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALV's short term assets ($3.9B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: ALV's short term assets ($3.9B) exceed its long term liabilities ($2.0B).

Debt to Equity History and Analysis

Debt Level: ALV's net debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: ALV's debt to equity ratio has increased from 37.7% to 74.6% over the past 5 years.

Debt Coverage: ALV's debt is well covered by operating cash flow (32%).

Interest Coverage: ALV's interest payments on its debt are well covered by EBIT (9.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.35%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ALV's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ALV's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (4.09%).

Stability and Growth of Payments

Stable Dividend: ALV's dividend payments have been volatile in the past 10 years.

Growing Dividend: ALV's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.1%), ALV's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (138%), ALV's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure

CEO

Mikael Bratt (54 yo)

3.92yrs

Tenure

US$3,237,848

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Mikael's total compensation ($USD3.24M) is below average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: ALV's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: ALV's board of directors are considered experienced (6.4 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

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31