Volvo AB (VOLV.A) AI Stock Analysis

• Market Cap: kr583.04B
• Dividend Yield: 2.79%
• Average Volume (3M): 86.88K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.34
• Revenue Growth: -9.40%
• EPS Growth: -31.77%
• Country: SE
• Employees: 91,154
• Sector: Industrials
• Sector Strength: 93
• Industry: Agricultural - Machinery
• EPS (TTM): 3.64
• Shares Outstanding: 444,966,830
• 10 Day Avg. Volume: 97,690
• 30 Day Avg. Volume: 86,884
• PEG Ratio: -1.43
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr299.00
• Price Target Upside: 3.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: kr301.00 ▲(4.66%Upside)

Volvo AB shows strong financial performance with stable leverage and effective cost management, which significantly contribute to its overall score. The technical analysis indicates a neutral stance, with no major momentum signals. Valuation metrics suggest the stock is fairly valued with a reasonable dividend yield. The absence of earnings call data and corporate events did not impact the score.

Volvo AB Business Overview & Revenue Model

Company Description

Volvo AB is a leading global manufacturer in the automotive industry, primarily focusing on the production and sale of trucks, buses, construction equipment, and marine and industrial engines. The company operates through various segments, including Trucks, Construction Equipment, Buses, and Volvo Penta, each delivering a range of products and services tailored to meet the diverse needs of its global clientele. With a strong commitment to innovation and sustainability, Volvo AB continues to enhance its product offerings with cutting-edge technology and environmentally friendly solutions.

How the Company Makes Money

Volvo AB generates revenue through the sale of its diverse portfolio of vehicles and machinery, including trucks, buses, construction equipment, and engines. The Trucks segment is the largest contributor to its revenue, offering a wide range of heavy-duty trucks under the Volvo, Renault, Mack, and UD brands. The Construction Equipment segment provides earth-moving machinery and equipment for various industrial uses. The Buses segment supplies complete buses and chassis, while Volvo Penta offers engines and drive systems for marine and industrial applications. Additionally, Volvo AB earns from aftersales services, spare parts, and financial services, such as leasing and insurance, which provide a steady stream of recurring income. The company's earnings are also bolstered by strategic partnerships and joint ventures that enhance its market presence and technological capabilities.

Volvo AB Financial Statement Overview

Summary

Volvo AB showcases strong financial health with robust revenue growth and profitability, stable leverage, and consistent cash flow generation. The balance sheet strength is evident with a solid equity base and manageable debt levels. While increased capital expenditures have impacted free cash flow, they also suggest strategic reinvestment for future growth.

Income Statement

Volvo AB shows strong revenue growth with a significant increase in total revenue over the years, especially evident in the TTM period. The gross profit margin is strong at 26.72% for TTM, indicating effective cost management. The net profit margin of 8.93% for TTM reflects steady profitability, although slightly lower compared to the previous year. Consistent EBIT and EBITDA margins underscore operational efficiency, with a TTM EBIT margin of 12.04% and an EBITDA margin of 16.81%. Overall, the income statement reflects robust growth and profitability, with minor fluctuations in net income.

Balance Sheet

The balance sheet of Volvo AB shows a stable financial position with a debt-to-equity ratio of 1.30 in the TTM period, indicating a balanced leverage. The equity ratio is healthy at 28.51%, showing a strong equity base relative to total assets. Return on equity (ROE) for TTM stands at 23.56%, demonstrating efficient use of shareholders' funds to generate profits. However, the total debt has increased over the years, which might pose a risk if not managed properly. Overall, the balance sheet reflects a stable financial position with moderate leverage.

Cash Flow

Volvo AB's cash flow statement shows a positive trend with strong operating cash flow generation, amounting to 44.38 billion in the TTM period. Free cash flow is positive, although it has decreased from the previous year, indicating increased capital expenditures. The operating cash flow to net income ratio is close to 1, reflecting effective conversion of income to cash. However, the free cash flow to net income ratio is lower, which indicates a higher reinvestment in the business. Overall, cash flow health is satisfactory, with consistent cash generation but increased investment activity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	517.43B	526.82B	552.76B	473.48B	372.22B	338.45B
Gross Profit	138.19B	144.05B	149.32B	111.74B	89.75B	79.13B
EBITDA	86.96B	91.35B	88.81B	68.34B	63.13B	43.30B
Net Income	46.20B	50.39B	49.83B	32.72B	32.79B	19.32B
Balance Sheet
Total Assets	687.67B	714.56B	681.81B	629.06B	515.86B	510.82B
Cash, Cash Equivalents and Short-Term Investments	90.90B	73.49B	73.61B	67.18B	50.79B	71.92B
Total Debt	254.39B	258.85B	233.52B	205.05B	151.45B	152.78B
Total Liabilities	488.49B	517.20B	501.07B	462.83B	371.74B	362.68B
Stockholders Equity	196.07B	194.05B	177.79B	162.72B	141.04B	145.29B
Cash Flow
Free Cash Flow	23.63B	28.06B	3.00B	7.40B	11.81B	13.29B
Operating Cash Flow	44.38B	46.44B	26.68B	33.24B	33.65B	30.61B
Investing Cash Flow	-22.28B	-24.14B	-26.84B	-21.49B	-1.49B	-9.94B
Financing Cash Flow	-18.88B	-21.87B	1.82B	7.48B	-57.55B	6.44B

Volvo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 287.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VOLV.A, the sentiment is Positive. The current price of 287.6 is above the 20-day moving average (MA) of 270.61, above the 50-day MA of 268.16, and above the 200-day MA of 270.32, indicating a bullish trend. The MACD of 4.02 indicates Negative momentum. The RSI at 66.35 is Neutral, neither overbought nor oversold. The STOCH value of 93.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:VOLV.A.

Volvo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	78 Outperform	kr176.04B	21.93	20.37%	2.01%	2.66%	19.90%
ATCO.B	78 Outperform	kr714.59B	23.49	28.28%	2.14%	0.54%	1.79%
SAND	76 Outperform	kr304.19B	21.00	16.41%	2.35%	-1.82%	12.60%
VOLV.A	74 Outperform	kr583.04B	15.32	22.62%	2.79%	-9.40%	-31.77%
ATCO.A	73 Outperform	kr710.48B	26.19	28.28%	1.92%	-2.31%	-4.41%
EPI.A	68 Neutral	kr239.81B	27.81		1.84%	3.92%	4.96%
Sector *	63 Neutral	kr61.10B	12.50	1.88%	2.33%	0.13%	-4.39%

Volvo AB Corporate Events

Volvo Group Reports Decline in Q2 2025 Sales Amid Market Uncertainty

In the second quarter of 2025, Volvo Group experienced a 5% decline in net sales, adjusted for currency movements, totaling SEK 122.9 billion. Despite a 6% drop in vehicle sales, the company’s service business remained stable, contributing to an adjusted operating income of SEK 13.5 billion with an 11.0% operating margin. The European market showed signs of stabilization, but uncertainty persisted in North America, impacting the company’s financial performance. The decrease in sales and operating income reflects broader market challenges and currency fluctuations, affecting Volvo’s operations and stakeholder interests.

The most recent analyst rating on ($SE:VOLV.A) stock is a Hold with a SEK285.00 price target. To see the full list of analyst forecasts on Volvo AB stock, see the SE:VOLV.A Stock Forecast page.