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Autoliv (ALV)
NYSE:ALV
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Autoliv
(NYSE:ALV)
74Outperform
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.
Valuation
Valuation is attractive with Autoliv trading below its 20-year average P/E ratio, supported by ongoing growth in passive safety and strong execution.
Negative Factors
Guidance
Guidance for 2025 is conservative with expectations for flat revenue and an EBIT margin below company consensus.
Revenue
Q4 revenue missed expectations due to underperformance in global light vehicle production and a deterioration in regional/customer mix.
Risks
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.
Autoliv (ALV) vs. S&P 500 (SPY)
Market Cap
$6.21B
Dividend Yield2.96%
Average Volume (3M)1.09M
Price to Earnings (P/E)10.0
Beta (1Y)0.93
Revenue Growth-2.29%
EPS Growth35.00%
CountryUS
Employees59,310
SectorConsumer Cyclical
Sector Strength66
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.05
Shares Outstanding77,422,560
10 Day Avg. Volume995,452
30 Day Avg. Volume1,093,471
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)4.10
P/FCF Ratio3.90
Enterprise Value/Market Cap1.47
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.73
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$106.53Price Target Upside14.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
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 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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.39B | 10.47B | 8.84B | 8.23B | 7.45B | Gross Profit |
| 1.93B | 1.82B | 1.40B | 1.51B | 1.25B | EBIT |
| 979.00M | 690.00M | 659.00M | 675.00M | 382.10M | EBITDA |
| 979.00M | 1.08B | 1.03B | 1.07B | 735.00M | Net Income Common Stockholders |
| 646.00M | 488.00M | 423.00M | 435.00M | 187.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 330.00M | 498.00M | 594.00M | 969.00M | 1.18B | Total Assets |
| 7.80B | 8.33B | 7.72B | 7.54B | 8.16B | Total Debt |
| 2.07B | 2.04B | 1.92B | 2.14B | 2.55B | Net Debt |
| 1.74B | 1.54B | 1.33B | 1.17B | 1.37B | Total Liabilities |
| 5.52B | 5.76B | 5.09B | 4.89B | 5.73B | Stockholders Equity |
| 2.28B | 2.56B | 2.61B | 2.63B | 2.41B |
| Cash Flow | Free Cash Flow | |||
| 480.00M | 409.00M | 128.00M | 296.00M | 509.30M | Operating Cash Flow |
| 1.06B | 982.00M | 713.00M | 754.00M | 848.90M | Investing Cash Flow |
| -563.00M | -569.00M | -485.00M | -454.00M | -339.60M | Financing Cash Flow |
| -680.00M | -490.00M | -531.00M | -469.00M | 160.10M |
Autoliv Technical Analysis
Positive
93.23
Price Trends
90.44
Positive
92.87
Positive
94.36
Negative
Market Momentum
0.91
Negative
59.70
Neutral
95.85
Negative
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 93.23 is above the 20-day moving average (MA) of 85.91, above the 50-day MA of 90.44, and below the 200-day MA of 94.36, indicating a neutral trend. The MACD of 0.91 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 95.85 is Negative, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.84B | 6.94 | 25.15% | ― | -1.35% | -39.06% | |
74 Outperform | $6.21B | 9.98 | 28.71% | 2.96% | -2.29% | 35.00% | |
69 Neutral | $11.00B | 6.97 | 17.57% | ― | -1.69% | -33.56% | |
69 Neutral | $4.53B | 9.44 | 10.81% | 3.64% | -0.70% | -7.27% | |
66 Neutral | $4.82B | 12.08 | 15.95% | 2.18% | -1.66% | -9.20% | |
65 Neutral | $5.75B | 17.42 | 6.46% | 1.52% | -11.11% | -46.32% | |
60 Neutral | $6.58B | 11.55 | 3.14% | 4.05% | 2.58% | -21.37% |
* Consumer Cyclical Sector Average
Performance Comparison
ALV
Autoliv
93.23
-25.39
-21.40%
BWA
BorgWarner
28.38
-6.78
-19.28%
APTV
Aptiv
57.06
-20.73
-26.65%
GNTX
Gentex
21.78
-11.74
-35.02%
LEA
Lear
85.75
-37.26
-30.29%
VC
Visteon
79.19
-36.10
-31.31%
Autoliv Earnings Call Summary
Earnings Call Date:Apr 16, 2025
(Q1-2025)
| % Change Since: 13.36%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to the fiscal year for Autoliv with notable improvements in operational efficiency and financial performance metrics. However, challenges such as tariff uncertainties and unfavorable production mix present ongoing risks. The company shows resilience with its strategic cost reductions and innovation, maintaining a positive outlook despite market complexities.Q1-2025 Updates
Positive Updates
Strong Sales and Earnings Development
Autoliv reported stronger than expected sales driven by light vehicle production pull forward in Europe and North America and improved profit and operating margin compared to the previous year. Adjusted operating income increased by 28% to $255 million.
Cost Reduction Achievements
Autoliv reduced its indirect workforce by over 1,500 since Q1 2023 and its direct headcount by 3,700 over the past year, leading to significant cost savings and improved operational efficiency.
Record Earnings Per Share
The company reported record earnings per share for the first quarter, driven by a lower number of shares and high net profit.
Recognition for Innovation
Autoliv received the PACE Pilot Award for its Bernoulli airbag module, which inflates larger airbags more efficiently, lowering deployment cost and weight.
Strong Cash Flow and Shareholder Returns
Despite higher receivables from strong sales, cash flow remained solid. Autoliv repurchased and retired 500,000 shares for $50 million and paid a dividend of $0.70 per share.
Negative Updates
Sales Decline and Adverse Mix Effects
Sales in Q1 decreased by 1% year-over-year due to negative currency effects and adverse regional and customer mix development.
Challenges with Tariffs and Economic Factors
The company is cautious about the remainder of the year due to complexities with tariffs and other economic factors affecting the global automotive market.
Unfavorable Light Vehicle Production Mix
An unfavorable regional light vehicle production mix negatively impacted performance with more than 3 percentage points effect in Q1.
Currency and Raw Material Headwinds
The net currency effect was negative $5 million, and raw materials impacted operating income by around $5 million negatively.
Company Guidance
During the first quarter of 2025, Autoliv Inc. reported a decrease in net sales by 1% year-over-year, totaling $2.6 billion, primarily impacted by negative currency translation effects. Despite this, the company achieved a 28% increase in adjusted operating income to $255 million, driven by cost reduction activities, including a reduction of the indirect workforce by over 1,500 and the direct headcount by 3,700 over the past year. The adjusted operating margin improved by 230 basis points to 9.9%. Earnings per share reached a record high due to a reduced number of shares and increased net profit. The return on capital employed remained robust at 26%, and the adjusted return on equity was 29%. The company also repurchased and retired 500,000 shares worth $50 million and paid a dividend of $0.70 per share. Looking forward, Autoliv reiterates its full-year guidance, expecting an adjusted operating cash flow of approximately $1.2 billion, despite navigating tariff challenges and economic uncertainties in the automotive industry.Autoliv Corporate Events
Business Operations and StrategyFinancial Disclosures
Autoliv Reports Q1 2025 Financial Results with Growth
Positive
Apr 16, 2025
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.
Spark’s Take on ALV Stock
According to Spark, TipRanks’ AI Analyst, ALV is a Neutral.
Autoliv’s overall stock score reflects a strong financial performance with robust revenue growth and profitability, supported by positive earnings call outcomes. However, mixed technical indicators and moderate valuation metrics slightly temper the outlook. The company’s strategic cost controls and agreements on inflation compensation set a solid foundation for future growth, despite industry challenges.
To see Spark’s full report on ALV stock, click here.
Private Placements and Financing
Autoliv Renews Euro Medium Term Note Programme
Neutral
Mar 17, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.