NYSE:ALV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

1.4%

ALV

3.5%

US Auto Components

0.4%

US Market


1 Year Return

0.5%

ALV

-2.3%

US Auto Components

6.9%

US Market

Return vs Industry: ALV exceeded the US Auto Components industry which returned -2.3% over the past year.

Return vs Market: ALV underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ALVIndustryMarket
7 Day1.4%3.5%0.4%
30 Day1.4%2.5%-1.1%
90 Day11.8%2.8%-0.5%
1 Year3.9%0.5%-0.8%-2.3%9.3%6.9%
3 Year21.1%-19.2%11.2%-0.3%45.8%36.4%
5 Year38.8%-11.0%19.4%3.0%62.9%45.1%

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?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ALV ($80.35) is trading below our estimate of fair value ($98.92)

Significantly Undervalued: ALV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ALV is poor value based on its PE Ratio (28.6x) compared to the Auto Components industry average (16.5x).

PE vs Market: ALV is poor value based on its PE Ratio (28.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ALV is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ALV is overvalued based on its PB Ratio (3.5x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Autoliv forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALV's forecast earnings growth (16.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ALV's earnings (16.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: ALV's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALV's revenue (4.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ALV's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ALV's Return on Equity is forecast to be high in 3 years time (21.5%)


Next Steps

Past Performance

How has Autoliv performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ALV's earnings have grown by 1.3% 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 (-62.5%) over the past year, making it difficult to compare to the Auto Components industry average (8.1%).


Return on Equity

High ROE: ALV's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: ALV's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: ALV has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Autoliv's financial position?


Financial Position Analysis

Short Term Liabilities: ALV's short term assets ($3.1B) exceeds its short term liabilities ($2.4B)

Long Term Liabilities: ALV's short term assets (3.1B) exceeds its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: ALV's debt to equity ratio (108.8%) is considered high

Reducing Debt: ALV's debt to equity ratio has increased from 45% to 108.8% over the past 5 years.

Debt Coverage: ALV's debt is well covered by operating cash flow (29.8%).

Interest Coverage: ALV's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: ALV's debt is covered by short term assets (assets are 1.376720x debt).


Next Steps

Dividend

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

3.09%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Autoliv before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ALV's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ALV's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.2%), ALV's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALV's dividends in 3 years are forecast to be well covered by earnings (32.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mikael Bratt (52yo)

1.3yrs

Tenure

US$1,756,972

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: ALV's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

65yo

Average Age

Experienced Board: ALV's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Mikael Bratt (52yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$1.76m
  • Erin Patrick

    Vice President of Compliance

    • Tenure: 8.1yrs
  • Bradley Murray (60yo)

    President of Autoliv Asia (AAS)

    • Tenure: 1.8yrs
    • Compensation: US$1.29m
  • Anthony Nellis (51yo)

    Executive VP of Legal Affairs

    • Tenure: 0yrs
  • Jordi Lombarte (52yo)

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Dan Garceau (51yo)

    President of Autoliv Americas (AAM)

    • Tenure: 1.8yrs
    • Compensation: US$787.03k
  • Anders Trapp

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Stina Thorman

    Acting Vice President of Corporate Communications

    • Tenure: 0yrs
  • Christian Hanke (50yo)

    Interim CFO

    • Tenure: 0.7yrs
  • Magnus Jarlegren

    Executive Vice President of Operations

    • Tenure: 0.2yrs

Board Members

  • Jim Ringler (74yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$300.00k
  • Jan Olsson (65yo)

    Member of Research Advisory Board

    • Tenure: 0yrs
  • Leif Johansson (68yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$260.00k
  • Dave Kepler (67yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$260.00k
  • Franz-Josef Kortüm (69yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$240.00k
  • Jan Carlson (59yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$3.17m
  • Mikael Bratt (52yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$1.76m
  • Xiaozhi Liu (63yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$240.00k
  • Ola Boström

    VP of Research & Member of Research Advisory Board

    • Tenure: 0yrs
  • Ted Senko (63yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$225.00k

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$7.009b
  • Shares outstanding: 87.23m
  • 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)SHSSESEKAug 1994
0MI0LSE (London Stock Exchange)SHSGBSEKAug 1994
LIVSDB (Deutsche Boerse AG)SHSDEEURAug 1994
ALIVSBATS-CHIXE (BATS 'Chi-X Europe')SHSGBSEKAug 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 Analysis2019/10/19 23:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.