Autoliv (ALV)
NYSE:ALV
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Autoliv
(NYSE:ALV)
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Rating:69Neutral
Price Target:
$118.00
▲(6.81% Upside)
Action:DowngradedDate:03/12/26
The score is driven primarily by solid underlying financial performance (improving margins and stronger cash generation) and supportive valuation (modest P/E and ~3% yield). These are tempered by very weak technical conditions (price below key moving averages and bearish momentum) and a cautious near-term earnings setup (management expects a weak Q1 with margin pressure despite full-year margin and cash-flow targets).
Positive Factors
Multi-year Revenue Growth
Sustained revenue growth from $7.45B in 2020 to $10.82B in 2025 indicates durable demand, successful program awards and market penetration. This scale improves fixed-cost absorption and engineering leverage, supporting structural margin improvement and long-term program profitability.
Negative Factors
Moderate Leverage
Debt close to equity (debt-to-equity ~0.95) leaves limited balance-sheet cushion. In a prolonged automotive downturn or program delay, higher leverage constrains flexibility to fund ramps, absorb working-capital swings, pursue M&A or sustain shareholder returns without raising external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year Revenue Growth
Sustained revenue growth from $7.45B in 2020 to $10.82B in 2025 indicates durable demand, successful program awards and market penetration. This scale improves fixed-cost absorption and engineering leverage, supporting structural margin improvement and long-term program profitability.
Read all positive factors
Autoliv (ALV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.26B
Dividend Yield2.6%
Average Volume (3M)797.51K
Price to Earnings (P/E)12.4
Beta (1Y)0.93
Revenue Growth0.84%
EPS Growth26.17%
CountryUS
Employees59,310
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.19
Shares Outstanding74,862,206
10 Day Avg. Volume607,528
30 Day Avg. Volume797,512
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)3.54
Price to Sales (P/S)0.84
P/FCF Ratio12.72
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda6.74
Forecast
1Y Price Target
$129.13Price Target Upside16.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)10.3
Revenue Forecast (FY)$10.94B
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 compon...
How the Company Makes Money
Autoliv primarily makes money by selling automotive safety systems and components directly to vehicle OEMs as part of new vehicle production (original equipment). Revenue is largely generated from (1) airbag systems (including airbags and inflator...
Autoliv Key Performance Indicators (KPIs)
Autoliv Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The call communicated strong financial and operational results, including record sales, record free operating cash flow, improved full‑year profitability and significant shareholder returns, underpinned by outperformance in fast‑growing Asian markets (notably China and India) and progress on cost‑savings and technology initiatives. Offsetting these positives are near‑term headwinds: Q4 margin compression, an unfavorable regional mix, expected raw material and tariff impacts, increased working capital, and Q1 2026 volume weakness. On balance, the positive record results, balance sheet strength, continued outperformance in key growth markets, and clear cost‑reduction progress materially outweigh the near‑term challenges and uncertainties presented.Positive Updates
Record Sales — Quarter and Full Year
Q4 sales were over $2.8 billion, an 8% year‑over‑year increase; full‑year 2025 sales reached $10.8 billion, up 4% versus 2024 — both all‑time records for the company.
Negative Updates
Quarterly Margin and Adjusted Operating Income Decline
Adjusted operating income in Q4 decreased 4% to $337 million and adjusted operating margin fell to 12.0%, down ~140 basis points year‑over‑year (driven by lower out‑of‑period compensation and lower customer RD&E reimbursement).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Sales — Quarter and Full Year
Q4 sales were over $2.8 billion, an 8% year‑over‑year increase; full‑year 2025 sales reached $10.8 billion, up 4% versus 2024 — both all‑time records for the company.
Read all positive updates
Company Guidance
Autoliv guided full‑year 2026 organic sales to be flat while global light‑vehicle production is expected to decline about 1%—implying Autoliv will outperform LVP by roughly 1 percentage point—with a roughly +1% net currency translation effect on sales; adjusted operating margin is targeted at about 10.5%–11.0%, operating cash flow around $1.2 billion, CapEx expected slightly higher than 2025 but below 5% of sales, and a tax rate of ~28% (guidance excludes capacity‑alignment and antitrust effects and assumes no material tariff/trade changes as of Jan 23, 2026). Management warned Q1 will be the weakest quarter (Q1 global LVP down ~4% YoY, ~1 million units, and down ~14% sequentially or ~3.3 million units, with China Q1 down >10%), and expects a significant Q1 margin decline due to lower call‑offs, lower engineering income and higher D&A (Q1 2025 included a $12M Russia sale benefit). Key headwinds for 2026 include higher raw‑material costs (gross impact ~ $30 million, largely gold and steel) and higher depreciation, while tailwinds will come from higher operational efficiency and structural cost savings (about $20 million of the remaining $30 million savings expected in 2026); overall management expects continued strong operating and free operating cash flow and sustained shareholder returns.Autoliv Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.81B | 10.39B | 10.47B | 8.84B | 8.23B |
| Gross Profit | 2.07B | 1.93B | 1.82B | 1.40B | 1.51B |
| EBITDA | 1.50B | 1.37B | 1.08B | 1.03B | 1.07B |
| Net Income | 735.00M | 646.00M | 488.00M | 423.00M | 435.00M |
Balance Sheet | |||||
| Total Assets | 8.64B | 7.80B | 8.33B | 7.72B | 7.54B |
| Cash, Cash Equivalents and Short-Term Investments | 604.00M | 330.00M | 498.00M | 594.00M | 969.00M |
| Total Debt | 2.44B | 2.07B | 2.04B | 1.92B | 2.14B |
| Total Liabilities | 6.06B | 5.52B | 5.76B | 5.09B | 4.89B |
| Stockholders Equity | 2.57B | 2.28B | 2.56B | 2.61B | 2.63B |
Cash Flow | |||||
| Free Cash Flow | 715.00M | 480.00M | 409.00M | 128.00M | 296.00M |
| Operating Cash Flow | 1.16B | 1.06B | 982.00M | 713.00M | 754.00M |
| Investing Cash Flow | -423.00M | -563.00M | -569.00M | -485.00M | -454.00M |
| Financing Cash Flow | -369.00M | -680.00M | -490.00M | -531.00M | -469.00M |
Autoliv Technical Analysis
Neutral
110.48
Price Trends
112.93
Negative
116.69
Negative
117.03
Negative
Market Momentum
-0.62
Negative
55.43
Neutral
75.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALV, the sentiment is Neutral. The current price of 110.48 is above the 20-day moving average (MA) of 105.16, below the 50-day MA of 112.93, and below the 200-day MA of 117.03, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALV.
Autoliv Risk Analysis
Autoliv disclosed 45 risk factors in its most recent earnings report. Autoliv reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.77B | 13.27 | 15.56% | 2.05% | 2.99% | -9.80% | |
72 Outperform | $6.25B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.51B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
69 Neutral | $8.26B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $11.04B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $12.65B | 101.80 | 1.78% | ― | 2.16% | -85.91% |
* Consumer Cyclical Sector Average
ALV
Autoliv
110.48
26.17
31.03%
BWA
BorgWarner
53.69
28.04
109.30%
APTV
Aptiv
59.07
16.11
37.51%
GNTX
Gentex
21.95
1.30
6.32%
LEA
Lear
122.40
47.13
62.62%
VC
Visteon
93.74
23.66
33.76%
Autoliv Corporate Events
Executive/Board ChangesPrivate Placements and Financing
Autoliv Names Monika Grama as New Chief Financial Officer
Positive
Mar 11, 2026
On March 6, 2026, Autoliv announced that its board appointed long‑time executive Monika Grama as Chief Financial Officer and Executive Vice President, Finance, effective April 1, 2026, succeeding Fredrik Westin, who will leave the company on...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Autoliv Posts Record 2025 Sales, Signals Moderation Ahead
Positive
Jan 30, 2026
On January 30, 2026, Autoliv reported record quarterly and full-year sales for the fourth quarter and full year 2025, with Q4 net sales rising 7.7% to $2.82 billion and organic growth of 4.2%, outpacing a 1.3% increase in global light vehicle prod...
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.