Autoliv (ALV) AI Stock Analysis

• Market Cap: $9.31B
• Dividend Yield: 2.5%
• Average Volume (3M): 584.81K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.97
• Revenue Growth: -0.98%
• EPS Growth: 21.64%
• Country: US
• Employees: 59,310
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.32
• Shares Outstanding: 76,807,210
• 10 Day Avg. Volume: 695,734
• 30 Day Avg. Volume: 584,809
• 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: 1.14
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 5.35
• Enterprise Value/Ebitda: 7.25
• 1Y Price Target: $135.38
• Price Target Upside: 14.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $134.00 ▲(13.59% Upside)

Autoliv's strong financial performance and attractive valuation are key strengths, supported by positive earnings call highlights. However, technical indicators suggest short-term bearish momentum, and challenges in customer mix and tariffs pose risks. The company is well-positioned for long-term growth with strategic investments in China.

Positive Factors

Strategic Investments

Strategic investments in R&D and joint ventures in China position Autoliv for growth in a key market, enhancing innovation and market entry.

Partnership with CATARC

The partnership with CATARC strengthens Autoliv's influence in setting safety standards, supporting long-term growth and innovation in China.

Revenue Growth

Consistent revenue growth in key regions indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Negative Factors

Unfavorable Customer Mix

An unfavorable customer mix and delays can hinder sales growth, affecting revenue stability and market competitiveness in key regions.

Tariff and Inflation Impact

Tariff and inflation impacts can erode margins, reducing profitability and financial flexibility, challenging long-term operational efficiency.

Free Cash Flow Decline

Declining free cash flow limits the company's ability to invest in growth initiatives, potentially affecting long-term strategic objectives.

Autoliv Business Overview & Revenue Model

Company Description

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, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.

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: Negative
• Last Price: 117.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALV, the sentiment is Negative. The current price of 117.97 is below the 20-day moving average (MA) of 122.75, below the 50-day MA of 122.40, and above the 200-day MA of 104.54, indicating a neutral trend. The MACD of -1.22 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 36.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALV.

Autoliv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APTV	79 Outperform	$18.18B	19.11	9.58%	―	-0.96%	-66.99%
ALV	78 Outperform	$9.31B	13.25	31.09%	2.50%	-0.98%	21.64%
VC	78 Outperform	$3.15B	11.02	22.96%	0.24%	-3.26%	-45.84%
LEA	71 Outperform	$5.34B	11.73	9.51%	3.10%	-3.12%	-8.23%
BWA	67 Neutral	$9.26B	45.71	3.66%	1.17%	-2.12%	-69.42%
GNTX	66 Neutral	$5.75B	14.84	16.38%	1.85%	2.43%	-1.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.