Autoliv (ALV) AI Stock Analysis

• Market Cap: $7.88B
• Dividend Yield: 2.71%
• Average Volume (3M): 779.11K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.90
• Revenue Growth: -2.29%
• EPS Growth: 35.00%
• Country: US
• Employees: 59,310
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Auto - Parts
• EPS (TTM): 2.15
• Shares Outstanding: 77,305,160
• 10 Day Avg. Volume: 518,464
• 30 Day Avg. Volume: 779,109
• PEG Ratio: 1.43
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.04
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 4.85
• Enterprise Value/Ebitda: 1.78
• 1Y Price Target: $109.00
• Price Target Upside: 8.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 73 Outperform
• Price Target: $114.00 ▲( 13.39% Upside)

Autoliv's overall stock score of 73 reflects its strong financial performance and positive earnings call outcomes, highlighting robust profitability and efficient cash flow management. While technical indicators are mixed, the company's valuation is attractive with a reasonable P/E ratio and solid dividend yield. Recent corporate events further bolster its market positioning, despite economic challenges in the automotive industry.

Positive Factors

Earnings

1Q results are clearly above consensus estimates, still not impacted by tariffs.

Financial Performance

Strong margins and cash generation, room to revamp the buyback in 2025.

Stock Valuation

Autoliv trades at a discount to its historical average, suggesting potential value for investors.

Negative Factors

Guidance

Guidance for 2025 is conservative with expectations for flat revenue and an EBIT margin below company consensus.

Market Risk

Key risks to global LVP in 2025 are related to a) weak demand led by emission regulations and b) impact of pull-forward of demand in China.

Revenue Performance

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

Autoliv Business Overview & Revenue Model

Company Description

Autoliv, Inc. is a leading company in the automotive safety industry, specializing in the design, development, and manufacturing of automotive safety systems. Headquartered in Stockholm, Sweden, the company operates globally in sectors related to automotive safety and technology. Its core products include airbags, seatbelts, steering wheels, and other safety components that enhance vehicle safety and protect passengers. Autoliv's commitment to innovation and quality has established it as a trusted partner for major automobile manufacturers worldwide.

How the Company Makes Money

Autoliv makes money primarily through the sale of automotive safety systems and components to global automotive manufacturers. The company's revenue streams are largely driven by its contracts and partnerships with original equipment manufacturers (OEMs) who integrate Autoliv's products into their vehicles. As safety regulations become more stringent and consumer demand for safer vehicles increases, Autoliv benefits from a growing market for advanced safety technologies. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and secure long-term contracts with car manufacturers. Key factors contributing to its earnings include its strong relationships with OEMs, a comprehensive portfolio of safety solutions, and a global manufacturing presence that allows it to efficiently serve a diverse customer base.

Autoliv Financial Statement Overview

Summary

Autoliv shows a strong financial performance with robust profitability and efficient cash flow management. The company maintains healthy margins and demonstrates growth potential with a stable revenue base. While leverage is moderate, it 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
	EBIT
1.05B	979.00M	690.00M	659.00M	675.00M	382.10M
	EBITDA
1.43B	1.37B	1.08B	1.03B	1.07B	735.00M
	Net Income Common Stockholders
686.00M	646.00M	488.00M	423.00M	435.00M	187.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
322.00M	330.00M	498.00M	594.00M	969.00M	1.18B
	Total Assets
8.11B	7.80B	8.33B	7.72B	7.54B	8.16B
	Total Debt
2.27B	2.07B	2.04B	1.92B	2.14B	2.55B
	Net Debt
1.95B	1.74B	1.54B	1.33B	1.17B	1.37B
	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: 100.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 100.54 is above the 20-day moving average (MA) of 96.18, above the 50-day MA of 90.41, and above the 200-day MA of 93.64, indicating a bullish trend. The MACD of 3.43 indicates Negative momentum. The RSI at 67.27 is Neutral, neither overbought nor oversold. The STOCH value of 73.09 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	81 Outperform	$2.31B	7.85	25.15%	―	-1.35%	-39.06%
APTV	81 Outperform	$14.69B	11.09	15.52%	―	-2.47%	-43.12%
BWA	76 Outperform	$7.26B	26.58	5.38%	1.32%	-8.22%	-52.61%
LEA	75 Outperform	$5.02B	11.01	10.00%	3.28%	-3.15%	-6.70%
ALV	73 Outperform	$7.88B	11.75	28.71%	2.71%	-2.29%	35.00%
GNTX	66 Neutral	$5.18B	13.51	15.90%	2.13%	-1.66%	-9.20%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%

Autoliv Corporate Events

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.

Autoliv Renews Euro Medium Term Note Programme

On March 14, 2025, Autoliv announced the renewal of its Euro Medium Term Note Programme, allowing it to issue notes up to EUR 3 billion in various currencies. This renewal, approved by the Board’s Audit and Risk Committee on March 12, 2025, enables Autoliv to leverage funding opportunities from capital markets and institutional investors, with notes guaranteed by its subsidiary, Autoliv ASP, Inc.