Autoliv (ALV) AI Stock Analysis

• Market Cap: $9.15B
• Dividend Yield: 2.37%
• Average Volume (3M): 715.23K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.88
• Revenue Growth: -2.29%
• EPS Growth: 35.00%
• Country: US
• Employees: 59,310
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 2.15
• Shares Outstanding: 77,305,160
• 10 Day Avg. Volume: 943,337
• 30 Day Avg. Volume: 715,232
• PEG Ratio: 1.60
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.89
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $114.87
• Price Target Upside: -2.44% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $125.00 ▲(6.17%Upside)

Autoliv's strong financial performance and attractive valuation are the most significant factors driving its stock score. Technical analysis indicates a bullish trend but warns of potential overbought conditions. The earnings call highlights operational efficiency improvements and a resilient outlook amidst economic challenges.

Positive Factors

Financial Performance

Autoliv delivers stable cash flows and retains a conservative balance sheet.

Shareholder Value

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

Negative Factors

Revenue Performance

Q4 revenue missed expectations due to underperformance in global light vehicle production and a deterioration in regional/customer mix.

Sales Performance

Organic sales were down approximately 3% year-over-year, driven by underperformance in China and North America.

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 makes money primarily through the sale of its safety products to automotive manufacturers. The company generates revenue from contracts and agreements with major car manufacturers who incorporate Autoliv's safety systems into their vehicles. Key revenue streams include the sale of airbags and seatbelts, which constitute a significant portion of their business due to their essential role in vehicle safety. Autoliv often enters into long-term partnerships with automotive companies, allowing for stable revenue generation. Additionally, the company invests in research and development to innovate and expand its product offerings, which can lead to increased sales and market share. Autoliv's global presence and production facilities enable it to efficiently meet the demands of its clients, further contributing to its financial performance.

Autoliv Financial Statement Overview

Summary

Autoliv demonstrates strong financial performance with robust profitability and efficient cash flow management. The company maintains healthy margins and showcases growth potential with a stable revenue base. Moderate leverage is balanced by strong operational performance and cash flow generation, positioning the company for continued stability and strategic growth.

Income Statement

Autoliv's financial performance shows a stable revenue base with a slight decrease from the prior year in TTM (Trailing-Twelve-Months). Gross profit margin stands strong at 18.97%, indicating efficient cost management relative to revenue. Net profit margin at 6.63% demonstrates reasonable profitability. The EBIT margin of 10.18% and EBITDA margin of 13.81% indicate healthy operational efficiency. Revenue growth from 2022 to 2023 was modest at 18.19%, highlighting expansion potential.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.96, balancing risk and potential for growth. The equity ratio is 28.97%, indicating a solid capital structure though slightly on the lower side, showing reliance on external financing. ROE stands at 29.17%, demonstrating strong profitability relative to shareholder's equity.

Cash Flow

Cash flow analysis reveals strong operational cash flow generation with a ratio of operating cash flow to net income at 1.48, indicating efficient cash conversion. The free cash flow growth rate of 19.58% from 2023 to TTM shows a positive trend in liquidity. The free cash flow to net income ratio is 0.84, reflecting robust cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.35B	10.39B	10.47B	8.84B	8.23B	7.45B
Gross Profit	1.96B	1.93B	1.82B	1.40B	1.51B	1.25B
EBITDA	1.43B	1.37B	1.08B	1.03B	1.07B	735.00M
Net Income	686.00M	646.00M	488.00M	423.00M	435.00M	187.00M
Balance Sheet
Total Assets	8.11B	7.80B	8.33B	7.72B	7.54B	8.16B
Cash, Cash Equivalents and Short-Term Investments	322.00M	330.00M	498.00M	594.00M	969.00M	1.18B
Total Debt	2.27B	2.07B	2.04B	1.92B	2.14B	2.55B
Total Liabilities	5.75B	5.52B	5.76B	5.09B	4.89B	5.73B
Stockholders Equity	2.35B	2.28B	2.56B	2.61B	2.63B	2.41B
Cash Flow
Free Cash Flow	472.00M	480.00M	409.00M	128.00M	296.00M	509.30M
Operating Cash Flow	1.01B	1.06B	982.00M	713.00M	754.00M	848.90M
Investing Cash Flow	-516.00M	-563.00M	-569.00M	-485.00M	-454.00M	-339.60M
Financing Cash Flow	-715.00M	-680.00M	-490.00M	-531.00M	-469.00M	160.10M

Autoliv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 117.74 is above the 20-day moving average (MA) of 110.61, above the 50-day MA of 102.98, and above the 200-day MA of 95.45, indicating a bullish trend. The MACD of 3.77 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 94.78 is Negative, 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
APTV	79 Outperform	$15.80B	12.02	15.52%	―	-2.47%	-43.12%
VC	79 Outperform	$2.80B	9.63	25.15%	―	-1.35%	-39.06%
BWA	76 Outperform	$7.81B	28.58	5.38%	1.24%	-8.23%	-52.61%
LEA	75 Outperform	$5.52B	12.10	10.00%	2.98%	-3.15%	-6.70%
ALV	75 Outperform	$9.15B	13.63	28.71%	2.37%	-2.29%	35.00%
GNTX	66 Neutral	$5.20B	13.56	15.90%	2.07%	-1.66%	-9.20%
Sector *	56 Neutral	$3.37B	4.05	-1.30%	6.64%	0.16%	-63.79%

Autoliv Corporate Events

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.

The most recent analyst rating on (ALV) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Autoliv stock, see the ALV Stock Forecast page.

Autoliv Announces Q2 Dividend and Governance Updates

On May 8, 2025, Autoliv held its Annual Meeting of Stockholders, where key decisions included the election of directors for a one-year term, approval of executive compensation, and ratification of Ernst & Young AB as the independent auditing firm. Additionally, the company announced a second-quarter dividend of $0.70 per share, payable in June 2025. These actions reflect Autoliv’s ongoing commitment to corporate governance and shareholder returns, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (ALV) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Autoliv stock, see the ALV Stock Forecast page.

Autoliv Reports Q1 2025 Financial Results with Growth

On April 16, 2025, Autoliv announced its financial results for the first quarter of 2025, reporting a 2.2% organic sales growth despite a 1.4% decrease in net sales compared to the previous year. The company achieved a 9.9% operating margin and a 41% increase in diluted earnings per share, driven by successful cost reduction efforts and strong sales in certain regions. Autoliv’s performance was bolstered by new product launches and effective navigation of tariff challenges, although it faced underperformance in China due to market dynamics. The company remains optimistic about its 2025 outlook, expecting around 2% organic sales growth and maintaining a strong balance sheet to support shareholder returns.