Volvo AB (VOLV.B) AI Stock Analysis

• Market Cap: kr627.70B
• Dividend Yield: 6.34%
• Average Volume (3M): 3.39M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.39
• Revenue Growth: -7.96%
• EPS Growth: -31.18%
• Country: SE
• Employees: 91,154
• Sector: General
• Sector Strength: N/A
• Industry: Agricultural - Machinery
• EPS (TTM): 4.73
• Shares Outstanding: 1,591,908,600
• 10 Day Avg. Volume: 4,677,128
• 30 Day Avg. Volume: 3,385,933
• PEG Ratio: -0.55
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 22.07
• 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: kr343.58
• Price Target Upside: 11.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 20.98
• Revenue Forecast (FY): kr485.32B

• Rating: 68 Neutral
• Price Target: kr314.00 ▲(1.75% Upside)
• Action: Downgraded Date: 01/30/26
• Date: Action: Downgraded 01/30/26

The score is driven primarily by solid but softening fundamentals—margin compression, declining revenue, higher leverage, and uneven cash conversion. Technicals are supportive with a strong uptrend, but overbought signals add near-term risk. Valuation is helped by a high dividend yield, while the P/E appears fair rather than a clear bargain.

Positive Factors

Diversified business model

Volvo's multi-segment exposure (heavy trucks, construction equipment, power systems and financial services) provides structural revenue diversification that smooths earnings across cycles. This integrated model lets the company capture unit sales, financing income and lifecycle service revenue, supporting resilient cash generation over 2–6 months.

Negative Factors

Declining revenue trend

A sustained top-line decline reduces scale benefits and the future size of the serviceable installed base, undermining long-term parts and service revenue growth. Continued revenue contraction pressures margins and cash flow, making recovery dependent on cyclical demand improvement or structural market share gains.

Volvo AB Business Overview & Revenue Model

Company Description

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company offers trucks for long...

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AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company offers trucks for long...

How the Company Makes Money

Volvo AB primarily makes money by selling products and services to business and public-sector customers across several operating segments. (1) Vehicle and equipment sales: The largest revenue driver is the sale of new commercial vehicles and machi...

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Volvo AB primarily makes money by selling products and services to business and public-sector customers across several operating segments. (1) Vehicle and equipment sales: The largest revenue driver is the sale of new commercial vehicles and machi...

Volvo AB Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	479.18B	526.82B	552.76B	473.48B	372.22B
Gross Profit	116.87B	144.05B	149.32B	111.74B	89.75B
EBITDA	66.71B	91.35B	88.81B	67.01B	63.13B
Net Income	34.46B	50.39B	49.83B	32.72B	32.79B
Balance Sheet
Total Assets	648.59B	714.56B	674.07B	629.06B	515.86B
Cash, Cash Equivalents and Short-Term Investments	73.50B	73.49B	73.61B	67.18B	50.79B
Total Debt	253.96B	258.85B	233.52B	205.05B	151.45B
Total Liabilities	470.11B	517.20B	493.33B	462.83B	371.74B
Stockholders Equity	178.40B	194.05B	177.79B	162.72B	141.04B
Cash Flow
Free Cash Flow	27.25B	28.06B	-1.99B	7.40B	11.81B
Operating Cash Flow	45.59B	46.44B	26.68B	33.24B	33.65B
Investing Cash Flow	-27.48B	-24.14B	-26.84B	-21.49B	-1.49B
Financing Cash Flow	-25.39B	-21.87B	1.82B	7.48B	-57.55B

Volvo AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 308.60
• 50DMA: Negative
• 100DMA: Negative
• 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.B, the sentiment is Neutral. The current price of 308.6 is below the 20-day moving average (MA) of 311.98, below the 50-day MA of 328.63, and above the 200-day MA of 291.02, indicating a neutral trend. The MACD of -7.20 indicates Negative momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 91.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:VOLV.B.

Volvo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	73 Outperform	kr212.28B	23.27	20.42%	1.84%	3.54%	20.94%
EPI.A	71 Outperform	kr268.63B	27.05	―	1.84%	2.00%	-0.25%
SAND	70 Outperform	kr459.61B	25.67	16.39%	1.94%	-1.77%	21.13%
VOLV.B	68 Neutral	kr627.70B	15.64	19.41%	6.34%	-7.96%	-31.18%
SKF.B	60 Neutral	kr101.80B	28.50	8.90%	3.19%	-4.16%	-12.95%
HEXA.B	56 Neutral	kr238.80B	43.82	6.71%	1.46%	-0.93%	-34.25%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%