Autoliv (ALV) AI Stock Analysis

• Market Cap: $9.63B
• Dividend Yield: 2.35%
• Average Volume (3M): 615.03K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.91
• Revenue Growth: -0.98%
• EPS Growth: 21.64%
• Country: US
• Employees: 59,310
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 2.21
• Shares Outstanding: 76,807,210
• 10 Day Avg. Volume: 547,502
• 30 Day Avg. Volume: 615,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 5.35
• Enterprise Value/Ebitda: 7.25
• 1Y Price Target: $128.96
• Price Target Upside: 2.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: $137.00 ▲(9.22% Upside)

Autoliv's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's ability to maintain profitability and growth despite economic challenges is commendable. However, potential risks from tariffs and declining vehicle production forecasts warrant caution.

Positive Factors

Earnings

Innovation leadership will lead to above consensus earnings growth not currently reflected in the valuation.

Financial Performance

Autoliv reaffirms its 2025 guidance, expecting 2% organic sales growth and 10-10.5% EBIT margin, which demonstrates confidence in its financial targets despite external challenges.

Shareholder Value

A new stock repurchase program of up to $2.5bn and a growing quarterly dividend indicates strong cash generation and reinforces shareholder value.

Negative Factors

China Market Performance

Still underperforming in China, but with significant improvement.

Operating Cash Flow

Operating cash flow rebounded from 1Q low to $277mn in 2Q, but still below the prior year level.

Autoliv Business Overview & Revenue Model

Company Description

Autoliv, Inc. is a global leader in automotive safety systems, headquartered in Sweden. The company specializes in the design, development, and manufacture of safety products including airbags, seatbelts, steering wheels, and other critical safety components. Autoliv operates across several sectors, primarily serving the automotive industry, and focuses on enhancing vehicle safety and reducing traffic-related fatalities through innovative technology and engineering solutions.

How the Company Makes Money

Autoliv generates revenue primarily through the sale of automotive safety products to vehicle manufacturers worldwide. The company operates through two main business segments: Airbag Systems and Seatbelt Systems. Key revenue streams include direct sales of airbags and seatbelt assemblies, as well as related safety electronics and sensors. Autoliv also engages in long-term contracts with major automotive OEMs (Original Equipment Manufacturers), which provide a stable income source. Additionally, the company invests in research and development to innovate and improve its product offerings, ensuring competitiveness in the market. Strategic partnerships with automotive manufacturers and participation in safety regulatory initiatives further enhance Autoliv's market presence and contribute to its earnings.

Autoliv Financial Statement Overview

Summary

Autoliv demonstrates solid financial health with strong revenue growth and profitability. The balance sheet is stable, but attention to debt management is advisable. Cash flow performance is adequate, though improvements in free cash flow are necessary to sustain long-term growth.

Income Statement

Autoliv's income statement shows strong performance with consistent revenue growth, evidenced by a 5.3% increase in TTM. The company maintains healthy profitability margins, with a gross profit margin of 19% and a net profit margin of 6.8% in TTM. EBIT and EBITDA margins have also improved, indicating efficient operations. However, the slight decline in revenue growth in 2024 suggests potential market challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.90 in TTM, showing a slight improvement from previous years. Return on equity is robust at 30.5%, indicating effective use of equity capital. The equity ratio remains stable, suggesting a balanced asset structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a mixed picture. While operating cash flow remains strong, the free cash flow has seen a decline of 4.7% in TTM, which could impact future investments. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio indicates room for improvement. The company should focus on enhancing free cash flow generation to support growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.46B	10.39B	10.47B	8.84B	8.23B	7.45B
Gross Profit	1.99B	1.93B	1.82B	1.40B	1.51B	1.25B
EBITDA	1.47B	1.37B	1.08B	1.03B	1.07B	735.00M
Net Income	715.00M	646.00M	488.00M	423.00M	435.00M	187.00M
Balance Sheet
Total Assets	8.48B	7.80B	8.33B	7.72B	7.54B	8.16B
Cash, Cash Equivalents and Short-Term Investments	237.00M	330.00M	498.00M	594.00M	969.00M	1.18B
Total Debt	2.22B	2.07B	2.04B	1.92B	2.14B	2.55B
Total Liabilities	6.00B	5.52B	5.76B	5.09B	4.89B	5.73B
Stockholders Equity	2.47B	2.28B	2.56B	2.61B	2.63B	2.41B
Cash Flow
Free Cash Flow	450.00M	480.00M	409.00M	128.00M	296.00M	509.30M
Operating Cash Flow	952.00M	1.06B	982.00M	713.00M	754.00M	848.90M
Investing Cash Flow	-485.00M	-563.00M	-569.00M	-485.00M	-454.00M	-339.60M
Financing Cash Flow	-581.00M	-680.00M	-490.00M	-531.00M	-469.00M	160.10M

Autoliv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALV, the sentiment is Positive. The current price of 125.43 is above the 20-day moving average (MA) of 120.23, above the 50-day MA of 116.45, and above the 200-day MA of 100.10, indicating a bullish trend. The MACD of 2.83 indicates Negative momentum. The RSI at 71.29 is Negative, neither overbought nor oversold. The STOCH value of 67.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALV.

Autoliv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.42B	11.70	22.96%	0.22%	-3.26%	-45.84%
ALV	79 Outperform	$9.63B	13.62	29.99%	2.35%	-0.98%	21.64%
APTV	79 Outperform	$17.07B	13.19	15.52%	―	-2.47%	-43.12%
LEA	76 Outperform	$5.87B	12.67	9.51%	2.84%	-3.12%	-8.23%
BWA	67 Neutral	$9.49B	46.82	3.66%	1.14%	-2.12%	-69.42%
GNTX	66 Neutral	$6.17B	15.68	16.38%	1.71%	2.43%	-1.25%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%

Autoliv Corporate Events

Autoliv Reports Record Q2 2025 Financial Results

On July 18, 2025, Autoliv announced its financial results for the second quarter of 2025, reporting record sales, operating income, and earnings per share (EPS). The company achieved a 4.2% increase in net sales to $2,714 million, with a 3.4% organic sales growth. Operating income rose by 20% to $247 million, and the operating margin improved to 9.1%. Despite a decrease in operating cash flow compared to the previous year, Autoliv successfully implemented cost reductions and tariff compensations, leading to a 27% increase in diluted EPS. The company anticipates continued growth in the second half of 2025, particularly in China, supported by new product launches and strategic cost management.

Autoliv CFO Fredrik Westin Announces Resignation

On June 30, 2025, Autoliv, Inc. announced the resignation of Fredrik Westin from his role as Chief Financial Officer and Executive Vice President, Finance, effective January 1, 2026. Westin’s departure is not due to any disagreements with the company and he will continue in his position until the end of 2025. The company has initiated the recruitment process for his successor. This change comes after Westin’s five-year tenure during a challenging period for the global automotive industry, and his decision to relocate to continental Europe.