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Autoliv (ALV)
NYSE:ALV
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Autoliv (ALV) AI Stock Analysis

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ALV

Autoliv

(NYSE:ALV)

Rating:75Outperform
Price Target:
$126.00
▲(8.76%Upside)
Autoliv's overall stock score is primarily driven by its strong financial performance and attractive valuation, supported by positive earnings call insights. While technical indicators are mixed, the company's strategic initiatives and shareholder returns provide a positive outlook, balancing regional and tariff-related challenges.
Positive Factors
Financial Stability
Autoliv delivers stable cash flows & retains a conservative balance sheet.
Innovation Leadership
Innovation leadership will lead to above consensus earnings growth not currently reflected in the valuation.
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
Guidance Concerns
Guidance for 2025 is conservative with expectations for flat revenue and an EBIT margin below company consensus.
Performance in China
Sales to domestic Chinese OEMs up 16% YoY, in line with LVP growth, but once again impacted by mix with typically lower safety content.
Revenue Performance
Q4 revenue missed expectations due to underperformance in global light vehicle production and a deterioration in regional/customer mix.

Autoliv (ALV) vs. SPDR S&P 500 ETF (SPY)

Autoliv Business Overview & Revenue Model

Company DescriptionAutoliv, 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 MoneyAutoliv 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 Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: -0.80%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive achievements such as record sales, improved operating margins, and strong shareholder returns, balanced by challenges related to tariffs, regional mix, and expectations of a challenging second half of the year.
Q2-2025 Updates
Positive Updates
Record Second Quarter Sales and Earnings
Autoliv reported record sales and earnings for the second quarter of 2025, with a year-over-year sales increase of 4% driven by strong outperformance relative to light vehicle production, favorable currency effects, and tariff-related compensations.
Improved Operating Profit and Margin
Operating profit and operating margin significantly improved, with the adjusted operating income increasing by 14% to $251 million, and the adjusted operating margin up by 80 basis points to 9.3%.
Strong Earnings Per Share Growth
Record earnings per share for the second quarter, with earnings per share more than tripling over the past five years, driven by strong net profit growth and a reduced share count.
Solid Shareholder Returns
The company remains committed to $300 to $500 million in annual stock repurchases and increased the third-quarter dividend to $0.85 per share.
Positive Sales Growth in China and India
Sales in China showed improvement, with a narrowing gap between sales growth and light vehicle production growth. Autoliv also outperformed the underlying LVP growth in India, holding a 60% market share.
Negative Updates
Tariff Challenges
The company faced significant headwinds from tariffs, recovering only 80% of the tariff costs during the second quarter, with remaining charges expected to be recovered later in the year.
Unfavorable Regional and Customer Mix
Sales growth was partly offset by an unfavorable regional and customer mix, impacting overall performance.
Higher Trade Working Capital
Trade working capital increased by $105 million year-over-year, with higher accounts receivables and inventories, viewed as a temporary increase.
Second Half Challenges
The outlook for the second half of 2025 is challenging, with global light vehicle production expected to decline by more than 2%, and the third quarter anticipated to be the weakest of the year in terms of profitability.
Company Guidance
During Autoliv, Inc.'s second quarter 2025 earnings call, the company reported record sales of over $2.7 billion, marking a 4% increase year-over-year, and adjusted operating income of $251 million, a 14% rise from the previous year. The adjusted operating margin improved by 80 basis points to 9.3%, while earnings per share reached a record high, supported by net profit growth and a reduced share count. Autoliv successfully recovered approximately 80% of the tariff costs incurred during the quarter, though tariffs negatively impacted the operating margin by about 35 basis points. The company's strong cash flow of $277 million and a healthy debt leverage ratio of 1.3 times supported a dividend increase to $0.85 per share and stock repurchases, with a commitment to $300 to $500 million annually. Despite an unfavorable regional and customer mix, organic sales grew by more than 3%, driven by performance in Europe and India, while China experienced improved sales growth relative to light vehicle production. For the full year 2025, Autoliv anticipates organic sales growth of around 3%, an adjusted operating margin of 10 to 10.5%, and operating cash flow of approximately $1.2 billion, amidst expectations of a global light vehicle production decline of around 0.5%.

Autoliv Financial Statement Overview

Summary
Autoliv exhibits strong financial performance with solid profitability margins and efficient cash flow management. The company maintains a stable revenue base and demonstrates growth potential, although leverage is moderate, balanced by strong operational performance.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.39B10.47B8.84B8.23B7.45B
Gross Profit1.93B1.82B1.40B1.51B1.25B
EBITDA1.37B1.08B1.03B1.07B735.00M
Net Income646.00M488.00M423.00M435.00M187.00M
Balance Sheet
Total Assets7.80B8.33B7.72B7.54B8.16B
Cash, Cash Equivalents and Short-Term Investments330.00M498.00M594.00M969.00M1.18B
Total Debt2.07B2.04B1.92B2.14B2.55B
Total Liabilities5.52B5.76B5.09B4.89B5.73B
Stockholders Equity2.28B2.56B2.61B2.63B2.41B
Cash Flow
Free Cash Flow480.00M409.00M128.00M296.00M509.30M
Operating Cash Flow1.06B982.00M713.00M754.00M848.90M
Investing Cash Flow-563.00M-569.00M-485.00M-454.00M-339.60M
Financing Cash Flow-680.00M-490.00M-531.00M-469.00M160.10M

Autoliv Technical Analysis

Technical Analysis Sentiment
Positive
Last Price115.85
Price Trends
50DMA
109.35
Positive
100DMA
99.43
Positive
200DMA
97.14
Positive
Market Momentum
MACD
1.78
Positive
RSI
56.52
Neutral
STOCH
61.67
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 115.85 is above the 20-day moving average (MA) of 115.52, above the 50-day MA of 109.35, and above the 200-day MA of 97.14, indicating a bullish trend. The MACD of 1.78 indicates Positive momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 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 44 risk factors in its most recent earnings report. Autoliv reported the most risks in the "Legal & Regulatory" 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$15.34B11.6715.52%-2.47%-43.12%
79
Outperform
$3.11B10.6922.96%-3.26%-45.84%
75
Outperform
$8.90B12.8229.99%2.40%-0.98%21.64%
74
Outperform
$5.78B12.7610.00%2.85%-3.15%-6.70%
73
Outperform
$7.92B29.375.38%1.22%-8.23%-52.61%
66
Neutral
$5.31B13.9915.90%2.03%-1.66%-9.20%
65
Neutral
€19.74B9.837.83%3.22%0.76%-42.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALV
Autoliv
115.85
19.55
20.30%
BWA
BorgWarner
36.03
3.66
11.31%
APTV
Aptiv
70.46
1.72
2.50%
GNTX
Gentex
23.60
-7.00
-22.88%
LEA
Lear
108.14
-9.53
-8.10%
VC
Visteon
115.13
3.60
3.23%

Autoliv Corporate Events

Business Operations and StrategyFinancial Disclosures
Autoliv Reports Record Q2 2025 Financial Results
Positive
Jul 18, 2025

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.

The most recent analyst rating on (ALV) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Autoliv stock, see the ALV Stock Forecast page.

Executive/Board Changes
Autoliv CFO Fredrik Westin Announces Resignation
Neutral
Jul 2, 2025

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.

Executive/Board ChangesShareholder MeetingsDividends
Autoliv Announces Q2 Dividend and Governance Updates
Positive
May 13, 2025

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.

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.Date of analysis: Jul 19, 2025