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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)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
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 (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 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 Earnings Call Summary

Earnings Call Date:Oct 17, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales and earnings growth, particularly in China and India, improved operating margins, and strategic investments in R&D and joint ventures in China. However, challenges such as unfavorable customer mix, delays in China, and negative impacts from tariffs and inflation were noted.
Q3-2025 Updates
Positive Updates
Record-Breaking Sales and Earnings
Autoliv achieved record-breaking third quarter sales and earnings, driven by strong market position and customer relationships. Sales increased by 6% year-over-year, reaching approximately $2.7 billion.
Strong Performance in China and India
Sales growth with Chinese OEMs returned to outperformance due to recent product launches, with China accounting for 90% of group sales. India contributed to 1/3 of global organic growth, with content per vehicle increasing from $120 in 2024 to $140 in 2025.
Improved Operating Margin and Earnings Per Share
Adjusted operating income for Q3 increased by 14% to USD 271 million, with an adjusted operating margin of 10.3%, up 70 basis points. Record earnings per share for Q3 were noted, with a 26% increase year-over-year.
Strategic Investments in China
Autoliv is investing in a second R&D center in China and announced a joint venture with HSAE to develop advanced safety electronics, aiming to capture more value and enhance market entry.
Negative Updates
Challenges in Europe and Japan
Light vehicle production in Western Europe and Japan declined by approximately 2% to 3%, impacting the overall regional light vehicle production mix unfavorably.
Unfavorable Customer Mix and Delays
Autoliv experienced a negative customer mix in North America and Europe, and delays in new launches in China, impacting expected sales growth.
Negative Impact from Tariffs and Inflation
Unrecovered tariffs and the dilutive effects of recovered portions resulted in a negative impact of approximately 20 basis points on operating margin. No out-of-period inflation compensation is expected in Q4.
Company Guidance
During the Autoliv, Inc. third-quarter 2025 financial results conference call, several key metrics were highlighted, underscoring a record-breaking quarter for the company. Sales grew by 6% year-over-year, driven by outperformance in light vehicle production in Asia and South America, along with favorable currency effects and tariff-related compensations. This growth was offset by an unfavorable regional and customer mix. The adjusted operating income increased by 14% to USD 271 million from USD 237 million a year ago, with an adjusted operating margin of 10%, marking a 70 basis point improvement. Operating cash flow was USD 258 million, a significant 46% increase compared to USD 177 million the previous year. Earnings per share reached a record high for the quarter, more than tripling over five years, mainly due to strong net profit growth and reduced share count. The company also announced a quarterly dividend increase to $0.85 per share, reflecting confidence in financial strength and long-term value creation. Key strategic investments were made, including a second R&D center in China and a joint venture with HSAE to advance safety electronics development, positioning the company for continued growth and innovation.

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
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.46B10.39B10.47B8.84B8.23B7.45B
Gross Profit1.99B1.93B1.82B1.40B1.51B1.25B
EBITDA1.47B1.37B1.08B1.03B1.07B735.00M
Net Income715.00M646.00M488.00M423.00M435.00M187.00M
Balance Sheet
Total Assets8.48B7.80B8.33B7.72B7.54B8.16B
Cash, Cash Equivalents and Short-Term Investments237.00M330.00M498.00M594.00M969.00M1.18B
Total Debt2.22B2.07B2.04B1.92B2.14B2.55B
Total Liabilities6.00B5.52B5.76B5.09B4.89B5.73B
Stockholders Equity2.47B2.28B2.56B2.61B2.63B2.41B
Cash Flow
Free Cash Flow450.00M480.00M409.00M128.00M296.00M509.30M
Operating Cash Flow952.00M1.06B982.00M713.00M754.00M848.90M
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-469.00M160.10M

Autoliv Technical Analysis

Technical Analysis Sentiment
Negative
Last Price117.97
Price Trends
50DMA
122.40
Negative
100DMA
116.68
Positive
200DMA
104.54
Positive
Market Momentum
MACD
-1.22
Positive
RSI
41.13
Neutral
STOCH
36.39
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 Risk Analysis

Autoliv disclosed 45 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$18.18B19.119.58%-0.96%-66.99%
78
Outperform
$9.31B13.2531.09%2.50%-0.98%21.64%
78
Outperform
$3.15B11.0222.96%0.24%-3.26%-45.84%
71
Outperform
$5.34B11.739.51%3.10%-3.12%-8.23%
67
Neutral
$9.26B45.713.66%1.17%-2.12%-69.42%
66
Neutral
$5.75B14.8416.38%1.85%2.43%-1.25%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALV
Autoliv
117.97
23.84
25.33%
BWA
BorgWarner
42.59
8.74
25.82%
APTV
Aptiv
82.76
12.66
18.06%
GNTX
Gentex
26.01
-2.91
-10.06%
LEA
Lear
99.46
-2.39
-2.35%
VC
Visteon
113.78
26.26
30.00%

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.

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.

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: Oct 18, 2025