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Autoliv
(NYSE:ALV)
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Rating:71Outperform
Price Target:
$133.00
▲(13.20% Upside)
Action:Reiterated
Date:07/18/26
ALV’s score is driven primarily by solid underlying financial performance (improving profitability and strong cash generation) and supportive valuation (P/E ~12.9 and ~2.9% yield). The score is tempered by mixed technical momentum and earnings-call risks tied to raw-material and tariff headwinds, large restructuring impacts, and a back-end-loaded margin recovery that increases execution risk.
Positive Factors
Cash Generation
Autoliv's robust operating cash flow and materially expanded free cash flow provide durable financial flexibility. Strong cash conversion supports capex below 5% of sales, sizable share repurchases and dividends, and funds product development without heavy reliance on external financing, improving resilience.
Negative Factors
Meaningful Leverage
Autoliv's returns are partly driven by elevated leverage; while improved, net debt still meaningfully amplifies downside risk. In a softer auto cycle, leverage could strain liquidity or force tougher capital-allocation tradeoffs, limiting flexibility for M&A or cushioning profit volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Autoliv's robust operating cash flow and materially expanded free cash flow provide durable financial flexibility. Strong cash conversion supports capex below 5% of sales, sizable share repurchases and dividends, and funds product development without heavy reliance on external financing, improving resilience.
Read all positive factors
Autoliv Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Shows where Autoliv earns its sales across regions (for example Americas, Europe, and Asia), highlighting exposure to regional car production cycles, OEM customers, and currency or trade risks. Useful for spotting geographic concentration, faster-growing markets, and potential vulnerabilities if a region slows or faces supply-chain issues.
Shows where Autoliv earns its sales across regions (for example Americas, Europe, and Asia), highlighting exposure to regional car production cycles, OEM customers, and currency or trade risks. Useful for spotting geographic concentration, faster-growing markets, and potential vulnerabilities if a region slows or faces supply-chain issues.
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The Fly
The FlyAutoliv (ALV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.02B
Dividend Yield2.81%
Average Volume (3M)773.81K
Price to Earnings (P/E)14.4
Beta (1Y)0.95
Revenue Growth5.89%
EPS Growth-7.00%
CountryUS
Employees64,300
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)8.53
Shares Outstanding73,237,220
10 Day Avg. Volume994,768
30 Day Avg. Volume773,809
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)3.54
Price to Sales (P/S)0.84
P/FCF Ratio12.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$133.38Price Target Upside13.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)10.13
Revenue Forecast (FY)$11.10B
Autoliv Business Overview & Revenue Model
Company Description
Autoliv, Inc., operating through its global subsidiaries, specializes in the development, production, and supply of passive safety equipment for the automotive sector. The company's market presence spans Europe, the Americas, China, Japan, and oth...
How the Company Makes Money
Autoliv primarily makes money by selling automotive safety systems and components to vehicle OEMs under supply agreements tied to vehicle production programs. Its main revenue streams are: (1) Airbags and associated components (e.g., airbag module...
Autoliv Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call emphasized a strong operational quarter with record sales and record operating cash flow, improved adjusted margins, meaningful outperformance in key Asian markets (India and China), strengthened cash generation and an ability to continue shareholder returns. At the same time, the company faces notable near-term headwinds — raw material inflation (assumed ~$110M headwind), tariff/IEEPA dynamics, one-time restructuring costs (Turkey closure: ~$142M charges, ~2,200 jobs) and a back-end loaded recovery that places execution risk on Q3/Q4 cadence. Management reiterated full-year guidance and outlined specific levers (cost reductions, customer price recoveries, engineering income) to offset inflation, indicating confidence but acknowledging execution and timing risks.Positive Updates
Record Quarterly Sales and Strong Top-Line Growth
Consolidated net sales exceeded $2.8 billion for the second quarter (only the second time in company history), representing approximately a 3% year-over-year increase and about $90 million higher than prior year (with a +2.2% FX translation benefit of ~$62 million).
Negative Updates
Raw Material Headwinds and Inflationary Pressure
Management assumes a full-year gross raw material headwind of approximately $110 million (noting higher helium prices and broader inflationary pressure). Raw material cost pressure is a driver of a back-end-loaded margin recovery and requires supplier negotiations, self-help and customer price adjustments.
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Q2-2026 Updates
Positive
Negative
Record Quarterly Sales and Strong Top-Line Growth
Consolidated net sales exceeded $2.8 billion for the second quarter (only the second time in company history), representing approximately a 3% year-over-year increase and about $90 million higher than prior year (with a +2.2% FX translation benefit of ~$62 million).
Read all positive updates
Company Guidance
Autoliv reiterated full‑year 2026 guidance calling for flat organic sales while outperforming global light‑vehicle production by ~2.5 percentage points (company assumes global LVP down ~2.5%), with a target adjusted operating margin of around 10.5%–11% (Q3 similar to H1, with a significant profit step‑up in Q4 as customer compensations/engineering income accrue); guidance assumes a gross raw‑material headwind of roughly $110 million, no material new tariff/trade changes, and no major macro or supply‑chain shocks, and includes a ~+2.5% net currency tailwind to sales, expected operating cash flow of about $1.2 billion, capital expenditures below 5% of sales, and a tax rate near 30%.Autoliv Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.08B | 10.81B | 10.39B | 10.47B | 8.84B | 8.23B |
| Gross Profit | 2.13B | 2.07B | 1.93B | 1.82B | 1.40B | 1.51B |
| EBITDA | 1.31B | 1.50B | 1.37B | 1.08B | 1.03B | 1.07B |
| Net Income | 643.00M | 735.00M | 646.00M | 488.00M | 423.00M | 435.00M |
Balance Sheet | ||||||
| Total Assets | 8.50B | 8.64B | 7.80B | 8.33B | 7.72B | 7.54B |
| Cash, Cash Equivalents and Short-Term Investments | 377.00M | 604.00M | 330.00M | 498.00M | 594.00M | 969.00M |
| Total Debt | 2.19B | 2.44B | 2.07B | 2.04B | 1.92B | 2.14B |
| Total Liabilities | 6.00B | 6.06B | 5.52B | 5.76B | 5.09B | 4.89B |
| Stockholders Equity | 2.49B | 2.57B | 2.28B | 2.56B | 2.61B | 2.63B |
Cash Flow | ||||||
| Free Cash Flow | 756.00M | 715.00M | 480.00M | 409.00M | 128.00M | 296.00M |
| Operating Cash Flow | 1.16B | 1.16B | 1.06B | 982.00M | 713.00M | 754.00M |
| Investing Cash Flow | -396.00M | -423.00M | -563.00M | -569.00M | -485.00M | -454.00M |
| Financing Cash Flow | -607.00M | -369.00M | -680.00M | -490.00M | -531.00M | -469.00M |
Autoliv Technical Analysis
Positive
117.49
Price Trends
122.31
Positive
116.83
Positive
117.58
Positive
Market Momentum
0.96
Negative
53.88
Neutral
74.77
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 117.49 is below the 20-day moving average (MA) of 121.22, below the 50-day MA of 122.31, and below the 200-day MA of 117.58, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALV.
Autoliv Risk Analysis
Autoliv disclosed 45 risk factors in its most recent earnings report. Autoliv reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Autoliv Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.02B | 14.44 | 25.10% | 2.94% | 5.89% | -7.00% | |
67 Neutral | $6.54B | 12.13 | 9.19% | 2.14% | 3.55% | 25.67% | |
64 Neutral | $13.07B | 37.06 | 6.34% | 1.06% | 2.36% | 34.03% | |
63 Neutral | $2.79B | 18.67 | 9.71% | 1.23% | -1.13% | -47.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.97B | 12.36 | 16.24% | 2.10% | 10.13% | 6.72% | |
53 Neutral | $11.95B | 33.61 | 2.41% | ― | 5.20% | -71.83% |
* Consumer Cyclical Sector Average
ALV
Autoliv
123.12
12.61
11.41%
BWA
BorgWarner
66.78
29.23
77.85%
APTV
Aptiv
47.01
-8.15
-14.78%
GNTX
Gentex
24.12
-1.96
-7.52%
LEA
Lear
125.27
32.50
35.03%
VC
Visteon
104.33
-8.01
-7.13%
Autoliv Corporate Events
Business Operations and StrategyDividendsShareholder Meetings
Autoliv Closes Türkiye Plants in Cost-Cutting Move
Negative
May 11, 2026
On May 8, 2026 Autoliv’s management approved the closure of its steering wheel, airbag and seatbelt manufacturing plants in Türkiye, after determining that EMEA production capacity exceeds future demand. The move will cut about 2,200 jo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.