NYSE:ALV

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 38% below its fair value

Earnings are forecast to grow 12.26% per year

Earnings grew by 22.8% over the past year

Pays a high and reliable dividend of 5.26%

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Undervalued established 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

Stable Share Price: ALV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.7%

ALV

11.1%

US Auto Components

12.5%

US Market


1 Year Return

-38.7%

ALV

-39.4%

US Auto Components

-12.7%

US Market

Return vs Industry: ALV matched the US Auto Components industry which returned -39.4% over the past year.

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


Shareholder returns

ALVIndustryMarket
7 Day16.7%11.1%12.5%
30 Day-29.4%-29.8%-14.7%
90 Day-44.2%-42.5%-21.5%
1 Year-36.5%-38.7%-38.4%-39.4%-10.9%-12.7%
3 Year-29.6%-53.2%-42.9%-48.7%12.6%5.4%
5 Year-38.5%-60.8%-37.3%-46.3%31.9%17.5%

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?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALV ($47.14) is trading below our estimate of fair value ($75.99)

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


Price To Earnings Ratio

PE vs Industry: ALV is good value based on its PE Ratio (8.9x) compared to the Auto Components industry average (11.4x).

PE vs Market: ALV is good value based on its PE Ratio (8.9x) compared to the US market (13x).


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 (1.9x) compared to the US Auto Components industry average (0.7x).


Next Steps

Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALV's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).

Earnings vs Market: ALV's earnings (12.3% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: ALV's revenue (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ALV's revenue (3.5% 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 (21.7%)


Next Steps

Past Performance

How has Autoliv performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALV has a large one-off loss of $256.9M impacting its December 31 2019 financial results.

Growing Profit Margin: ALV's current net profit margins (5.4%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: ALV's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: ALV's earnings growth over the past year (22.8%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: ALV earnings growth over the past year (22.8%) exceeded the Auto Components industry -4.2%.


Return on Equity

High ROE: ALV's Return on Equity (21.8%) is considered high.


Next Steps

Financial Health

How is Autoliv's financial position?


Financial Position Analysis

Short Term Liabilities: ALV's short term assets ($3.0B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: ALV's short term assets ($3.0B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: ALV's debt to equity ratio (98.7%) is considered high.

Reducing Debt: ALV's debt to equity ratio has increased from 46.6% to 98.7% over the past 5 years.

Debt Coverage: ALV's debt is well covered by operating cash flow (30.6%).

Interest Coverage: ALV's interest payments on its debt are well covered by EBIT (14.8x 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 1.4x debt).


Next Steps

Dividend

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

5.26%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ALV's dividend (5.26%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: ALV's dividend (5.26%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: ALV's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.9%), ALV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALV's dividends in 3 years are forecast to be well covered by earnings (31.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mikael Bratt (52yo)

1.75s

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 ($USD2.40M) is below average for companies of similar size in the US market ($USD5.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mikael Bratt
President1.75yrsUS$2.40m0.0047% $193.0k
Jordi Lombarte
Chief Technology Officer2.17yrsUS$939.86k0.0022% $92.2k
Daniel Garceau
President of Autoliv Americas (AAM)5.5yrsUS$974.04k0.00094% $38.7k
Bradley Murray
President of Autoliv Asia (AAS)2.17yrsUS$2.80m0.0012% $51.0k
Fredrik Westin
CFO & EVP of Financeno datano datano data
Magnus Jarlegren
Executive Vice President of Operations0.58yrno data0.00037% $15.2k
Anders Trapp
Vice President of Investor Relationsno datano datano data
Anthony Nellis
Executive VP of Legal Affairsno datano data0.0018% $73.3k
Stina Thorman
Acting Vice President of Corporate Communicationsno datano datano data
Sherry Vasa
Executive Vice President of Human Resources & Sustainabilityno datano data0.0016% $64.2k

2.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: ALV's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mikael Bratt
President1.75yrsUS$2.40m0.0047% $193.0k
Ola Boström
VP of Research & Member of Research Advisory Boardno datano datano data
James Ringler
Lead Independent Director2.83yrsUS$300.00k0.0076% $314.9k
Jan Olsson
Member of Research Advisory Boardno datano datano data
Leif Johansson
Independent Director4yrsUS$260.00k0.017% $690.3k
David Kepler
Independent Director5yrsUS$260.00k0.0041% $167.1k
Franz-Josef Kortüm
Independent Director6yrsUS$240.00k0.0043% $177.0k
Jan Carlson
Chairman5.83yrsUS$390.00k0.073% $3.0m
Xiaozhi Liu
Independent Director8.33yrsUS$240.00k0.0061% $249.4k
Thaddeus Senko
Independent Director2yrsUS$270.00k0.00079% $32.5k

4.5yrs

Average Tenure

65yo

Average Age

Experienced Board: ALV's board of directors are considered experienced (4.5 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$4.116b
  • Shares outstanding: 87.32m
  • 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
LIVBRSE (Berne Stock Exchange)YesCommon SharesCHCHFApr 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 components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, battery cable cutters, pedestrian protection systems, and child seats. It operates in Europe and the Americas; and China, Japan, and rest of Asia. The company primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:23
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.