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Volvo AB (GB) (SE:VOLV.A)
:VOLV.A
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Volvo AB (VOLV.A) AI Stock Analysis

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SE:VOLV.A

Volvo AB

(LSE:VOLV.A)

Rating:74Outperform
Price Target:
kr301.00
â–²(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 (VOLV.A) vs. iShares MSCI Sweden ETF (EWD)

Volvo AB Business Overview & Revenue Model

Company DescriptionVolvo 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 MoneyVolvo 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
82
Very Positive
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
78
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue517.43B526.82B552.76B473.48B372.22B338.45B
Gross Profit138.19B144.05B149.32B111.74B89.75B79.13B
EBITDA86.96B91.35B88.81B68.34B63.13B43.30B
Net Income46.20B50.39B49.83B32.72B32.79B19.32B
Balance Sheet
Total Assets687.67B714.56B681.81B629.06B515.86B510.82B
Cash, Cash Equivalents and Short-Term Investments90.90B73.49B73.61B67.18B50.79B71.92B
Total Debt254.39B258.85B233.52B205.05B151.45B152.78B
Total Liabilities488.49B517.20B501.07B462.83B371.74B362.68B
Stockholders Equity196.07B194.05B177.79B162.72B141.04B145.29B
Cash Flow
Free Cash Flow23.63B28.06B3.00B7.40B11.81B13.29B
Operating Cash Flow44.38B46.44B26.68B33.24B33.65B30.61B
Investing Cash Flow-22.28B-24.14B-26.84B-21.49B-1.49B-9.94B
Financing Cash Flow-18.88B-21.87B1.82B7.48B-57.55B6.44B

Volvo AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price287.60
Price Trends
50DMA
268.16
Positive
100DMA
271.35
Positive
200DMA
270.32
Positive
Market Momentum
MACD
4.02
Negative
RSI
66.35
Neutral
STOCH
93.20
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
kr176.04B21.9320.37%2.01%2.66%19.90%
78
Outperform
kr714.59B23.4928.28%2.14%0.54%1.79%
76
Outperform
kr304.19B21.0016.41%2.35%-1.82%12.60%
74
Outperform
kr583.04B15.3222.62%2.79%-9.40%-31.77%
73
Outperform
kr710.48B26.1928.28%1.92%-2.31%-4.41%
68
Neutral
kr239.81B27.81
1.84%3.92%4.96%
63
Neutral
kr61.10B12.501.88%2.33%0.13%-4.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:VOLV.A
Volvo AB
287.60
29.02
11.22%
SE:ALFA
Alfa Laval AB
423.30
-34.00
-7.43%
SE:ATCO.A
Atlas Copco AB
151.00
-30.42
-16.77%
SE:SAND
Sandvik AB
244.50
33.28
15.75%
SE:EPI.A
Epiroc AB
206.60
11.07
5.66%
SE:ATCO.B
Atlas Copco AB
135.25
-23.20
-14.64%

Volvo AB Corporate Events

Volvo Group Reports Decline in Q2 2025 Sales Amid Market Uncertainty
Jul 17, 2025

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.

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: Jul 23, 2025