Autoliv (ALV) AI Stock Analysis

• Market Cap: $9.14B
• Dividend Yield: 2.59%
• Average Volume (3M): 529.74K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.93
• Revenue Growth: 0.84%
• EPS Growth: 26.17%
• Country: US
• Employees: 59,310
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.32
• Shares Outstanding: 75,965,350
• 10 Day Avg. Volume: 529,405
• 30 Day Avg. Volume: 529,743
• PEG Ratio: 0.29
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 15.67
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $139.30
• Price Target Upside: 16.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $134.00 ▲(12.03% Upside)

Autoliv's strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic investments and corporate events further enhance its outlook. However, mixed technical indicators and some operational challenges temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth in key regions demonstrates strong market demand and effective execution of strategic initiatives, supporting long-term expansion.

Strategic Investments

Strategic investments in R&D and partnerships enhance innovation capacity and market positioning, crucial for future growth in the automotive safety sector.

Financial Health

Increasing dividends reflect strong financial health and confidence in sustained cash flow generation, enhancing shareholder value over the long term.

Negative Factors

Unfavorable Customer Mix

An unfavorable customer mix and delays can hinder sales growth and operational efficiency, posing risks to achieving optimal revenue targets.

Tariff and Inflation Impacts

Tariff and inflation pressures can erode margins, affecting profitability and requiring strategic cost management to mitigate long-term financial impacts.

Regional Production Declines

Declines in key regional markets can limit growth opportunities and necessitate strategic adjustments to maintain competitive advantage and market share.

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. The company's revenue model is based on long-term contracts with major automotive OEMs (Original Equipment Manufacturers), where they supply safety systems that are essential for vehicle compliance with safety regulations. Key revenue streams include the sales of airbags, seatbelt systems, and electronic safety systems, which are integral to modern vehicles. Autoliv also invests in research and development to innovate and expand its product offerings, including collaborations with technology companies to enhance safety features in autonomous vehicles. Significant partnerships with leading automotive brands help secure ongoing revenue and facilitate the introduction of new safety technologies into the market.

Autoliv Financial Statement Overview

Summary

Autoliv's financial performance is strong, with solid revenue growth and improved profitability. The balance sheet reflects a stable financial position with prudent debt management. Cash flow generation is robust, although there is potential to enhance free cash flow conversion.

Income Statement

Autoliv has demonstrated solid revenue growth with a TTM revenue increase of 1.44% compared to the previous year. The gross profit margin has improved to 19.32% in the TTM, indicating efficient cost management. Net profit margin has also increased to 7.08%, reflecting enhanced profitability. However, the EBIT margin has slightly decreased, suggesting potential pressure on operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.84 in the TTM, indicating a more balanced capital structure. Return on equity is strong at 31.19%, showcasing effective utilization of shareholder funds. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to leveraging assets.

Cash Flow

Autoliv's free cash flow growth rate is impressive at 26.89% in the TTM, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating strong cash conversion. However, the free cash flow to net income ratio suggests room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.61B	10.39B	10.47B	8.84B	8.23B	7.45B
Gross Profit	2.05B	1.93B	1.82B	1.40B	1.51B	1.25B
EBITDA	1.45B	1.37B	1.08B	1.03B	1.07B	735.00M
Net Income	752.00M	646.00M	488.00M	423.00M	435.00M	187.00M
Balance Sheet
Total Assets	8.46B	7.80B	8.33B	7.72B	7.54B	8.16B
Cash, Cash Equivalents and Short-Term Investments	225.00M	330.00M	498.00M	594.00M	969.00M	1.18B
Total Debt	2.15B	2.07B	2.04B	1.92B	2.14B	2.55B
Total Liabilities	5.90B	5.52B	5.76B	5.09B	4.89B	5.73B
Stockholders Equity	2.55B	2.28B	2.56B	2.61B	2.63B	2.41B
Cash Flow
Free Cash Flow	571.00M	480.00M	409.00M	128.00M	296.00M	509.30M
Operating Cash Flow	1.03B	1.06B	982.00M	713.00M	754.00M	848.90M
Investing Cash Flow	-445.00M	-563.00M	-569.00M	-485.00M	-454.00M	-339.60M
Financing Cash Flow	-737.00M	-680.00M	-490.00M	-531.00M	-469.00M	160.10M

Autoliv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 119.61
• 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 119.61 is above the 20-day moving average (MA) of 118.12, above the 50-day MA of 118.08, and above the 200-day MA of 108.81, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 66.11 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
ALV	78 Outperform	$9.14B	12.43	31.09%	2.59%	0.84%	26.17%
LEA	75 Outperform	$5.99B	14.14	8.96%	2.67%	-1.90%	-13.86%
VC	73 Outperform	$2.78B	9.16	23.16%	0.54%	-4.03%	-39.51%
APTV	70 Outperform	$16.73B	60.94	3.25%	―	2.16%	-85.91%
GNTX	70 Outperform	$5.24B	14.16	15.23%	2.01%	2.99%	-9.80%
BWA	65 Neutral	$9.52B	71.33	2.24%	1.25%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Autoliv Corporate Events

Autoliv Increases Quarterly Dividend by 2.4%

On November 10, 2025, Autoliv announced an increase in its quarterly dividend by 2.4% to $0.87 per share for the fourth quarter of 2025. The dividend will be distributed to common stockholders on December 10, 2025, and to Swedish Depository Receipt holders on December 11, 2025. This decision reflects Autoliv’s commitment to returning value to its shareholders, with an annualized total dividend of approximately $260 million, indicating strong financial health and confidence in future performance.

Autoliv Issues EUR 300 Million Notes for Sustainability

On October 29, 2025, Autoliv, Inc. issued EUR 300 million in notes due in 2030 with a 3.000% coupon rate, aimed at funding projects in clean transportation, renewable energy, energy efficiency, and de-carbonization. The notes are listed on Euronext Dublin and are not registered under the U.S. Securities Act, reflecting Autoliv’s strategic focus on sustainable initiatives and its positioning in the global financial markets.

Autoliv Achieves Record Q3 2025 Financial Results

Autoliv reported record-breaking financial results for the third quarter of 2025, with net sales reaching $2,706 million, a 5.9% increase from the previous year. The company achieved a 3.9% organic sales growth and a 9.9% operating margin, driven by cost reductions and tariff compensations. Despite challenges in China and Europe, Autoliv outperformed in Asia ex. China and the Americas. The company’s profitability improved significantly, with a 31% increase in diluted EPS and a 46% rise in operating cash flow. Autoliv’s strategic initiatives, including a joint venture in China and a new R&D center, are expected to bolster future growth.

Autoliv Approves Retention Award for Magnus Jarlegren

On September 8, 2025, Autoliv‘s Leadership Development and Compensation Committee approved a retention equity award for Magnus Jarlegren to enhance retention and leadership stability. The award, valued at $900,000 in time-vested restricted stock units, will be granted on November 17, 2025, and will vest after three years, contingent on Mr. Jarlegren’s continued employment.