Volvo AB (VOLV.B) AI Stock Analysis

• Market Cap: kr551.31B
• Dividend Yield: 3.9%
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.28
• Revenue Growth: -9.40%
• EPS Growth: -31.77%
• Country: SE
• Employees: 91,154
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 3.64
• Shares Outstanding: 1,588,485,200
• 10 Day Avg. Volume: 2,642,301
• 30 Day Avg. Volume: 2,940,938
• PEG Ratio: -1.44
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.63
• 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: kr300.64
• Price Target Upside: 13.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: kr296.00 ▲(12.08%Upside)

Volvo's overall stock score reflects its solid financial performance and reasonable valuation. Despite the technical analysis indicating neutral momentum, the company's strong financial position and appealing dividend yield provide a compelling case for potential investors.

Volvo AB Business Overview & Revenue Model

Company Description

Volvo AB, commonly known as the Volvo Group, is a leading global manufacturer of trucks, buses, construction equipment, and marine and industrial engines. Headquartered in Gothenburg, Sweden, the company operates across multiple sectors, including commercial vehicles, automotive, and industrial equipment. Volvo AB is known for its commitment to quality, safety, and environmental care, and it serves customers worldwide with a diverse range of premium products and services.

How the Company Makes Money

Volvo AB generates revenue primarily through the sale of its commercial vehicles, including trucks and buses, which account for a significant portion of its income. The company also earns from its construction equipment division, which offers machinery for various industrial applications. Additionally, Volvo AB provides financial services such as leasing and insurance, adding another revenue stream. The company benefits from its global presence and strategic partnerships, which enhance its market reach and operational efficiency. Aftermarket services, including parts and maintenance, also contribute to its revenue. These diverse income streams and its strong brand reputation help Volvo maintain a robust financial performance.

Volvo AB Financial Statement Overview

Summary

Volvo AB presents a solid financial foundation with strong profitability margins, efficient cash flow management, and prudent leverage. However, there is a slight revenue decline and room for improvement in equity financing.

Income Statement

Volvo AB demonstrates strong profitability with a gross profit margin of 26.71% and a solid net profit margin of 8.93% for the TTM (Trailing-Twelve-Months). The company has maintained healthy EBIT and EBITDA margins of 12.04% and 16.81%, respectively. However, there is a slight revenue decline observed year-over-year, which could be a concern if the trend continues.

Balance Sheet

The balance sheet is stable with a reasonable debt-to-equity ratio of 1.30, indicating a balanced leverage. Return on Equity (ROE) stands at a robust 23.57%, reflecting efficient utilization of equity. The equity ratio is 28.52%, suggesting room for improvement in equity financing to enhance stability.

Cash Flow

Volvo's cash flow performance is commendable with a free cash flow to net income ratio of 0.51, showcasing effective cash generation relative to profitability. The operating cash flow to net income ratio is 0.96, indicating strong cash conversion. However, there is a decline in free cash flow growth due to increased capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	526.82B	552.76B	473.48B	372.22B	338.45B
Gross Profit	144.05B	149.32B	111.74B	89.75B	79.13B
EBITDA	91.35B	88.81B	68.34B	63.13B	43.30B
Net Income	50.39B	49.83B	32.72B	32.79B	19.32B
Balance Sheet
Total Assets	714.56B	674.07B	629.06B	515.86B	510.82B
Cash, Cash Equivalents and Short-Term Investments	73.49B	73.61B	67.18B	50.79B	71.92B
Total Debt	258.85B	233.52B	205.05B	151.45B	152.78B
Total Liabilities	517.20B	493.33B	462.83B	371.74B	362.68B
Stockholders Equity	194.05B	177.79B	162.72B	141.04B	145.29B
Cash Flow
Free Cash Flow	28.06B	-1.99B	7.40B	11.81B	13.29B
Operating Cash Flow	46.44B	26.68B	33.24B	33.65B	30.61B
Investing Cash Flow	-24.14B	-26.84B	-21.49B	-1.49B	-9.94B
Financing Cash Flow	-21.87B	1.82B	7.48B	-57.55B	6.44B

Volvo AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 264.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VOLV.B, the sentiment is Negative. The current price of 264.1 is below the 20-day moving average (MA) of 265.91, below the 50-day MA of 266.76, and below the 200-day MA of 268.94, indicating a bearish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 48.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:VOLV.B.

Volvo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATCO.B	78 Outperform	kr735.06B	23.72	27.15%	2.18%	0.54%	1.79%
SKF.B	77 Outperform	kr101.74B	15.94	11.14%	3.47%	-3.96%	2.77%
SAND	76 Outperform	kr294.28B	20.71	16.41%	2.45%	-1.82%	12.60%
VOLV.B	74 Outperform	kr551.31B	11.93	25.90%	3.90%	-9.40%	-31.77%
ALFA	74 Outperform	kr172.03B	23.14	18.80%	2.04%	6.40%	18.28%
EPI.A	72 Outperform	kr251.60B	29.90		1.75%	7.22%	-2.59%
Sector *	67 Neutral	CHF6.70B	27.00	14.57%	2.62%	-2.23%	-29.51%