Volvo AB (VLVLY) AI Stock Analysis

• Market Cap: $64.75B
• Dividend Yield: 5.84%
• Average Volume (3M): 5.94K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.02
• Revenue Growth: -4.42%
• EPS Growth: -28.93%
• Country: US
• Employees: 91,154
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.39
• Shares Outstanding: 1,589,163,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 5,942
• PEG Ratio: 9.43
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 19.36
• Enterprise Value/Market Cap: 11.46
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 6.12
• Enterprise Value/Ebitda: 9.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $34.00 ▲(14.21% Upside)

Volvo AB's stock score is primarily driven by its solid technical analysis, indicating bullish momentum, and a fair valuation with an attractive dividend yield. Financial performance shows operational efficiency but highlights concerns with declining revenue growth and cash flow challenges. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strategic Partnerships

Volvo's joint venture with Westport demonstrates strategic collaboration, potentially enhancing its market position in heavy-duty trucking with innovative technology.

Operational Efficiency

Strong operational efficiency and return on equity indicate Volvo's ability to effectively manage resources and generate shareholder value over the long term.

Sustainability Focus

Volvo's commitment to sustainability and innovation positions it well in the evolving market, aligning with global trends towards eco-friendly transport solutions.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate suggests challenges in maintaining sales momentum, which could impact long-term financial performance and market competitiveness.

LiDAR Supply Dispute

The dispute over LiDAR supply with Luminar could affect Volvo's technological advancements and relationships with suppliers, impacting future product offerings.

Cash Flow Challenges

Weak cash flow generation can limit Volvo's ability to invest in growth opportunities and manage financial obligations, affecting long-term stability.

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-haulage, construction, mining, and distribution purposes under the Volvo, UD Trucks, Renault Trucks, Mack, Eicher, Arquus, cellcentric, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis, as well as associated transport systems under the Prevost and Nova Bus brands. It also provides construction equipment, including excavators, articulated and rigid haulers, wheel loaders, road construction machines, pavers, and compactors under the brand names of Volvo, and SDLG Trucks. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-road applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repair, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop battery packs for its trucks; and an agreement with NVIDIA and Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Volvo AB generates revenue primarily through the sale of vehicles and equipment across its various segments. The main sources of income include the sale of trucks, buses, and construction machinery, as well as parts and maintenance services for these products. Additionally, Volvo earns revenue from financing services and leasing options for customers, which allows them to acquire vehicles without significant upfront costs. The company also benefits from strategic partnerships, such as collaborations with technology firms to develop electric and autonomous vehicles, enhancing its competitive edge and expanding its market reach. Overall, Volvo's focus on innovation and sustainability, along with its diverse product offerings, contribute significantly to its earnings.

Volvo AB Financial Statement Overview

Summary

Volvo AB demonstrates operational efficiency and a strong return on equity, but faces challenges with declining revenue growth and profitability margins. The balance sheet remains stable, though increased leverage could be a concern. Cash flow generation has weakened, highlighting the need for improved cash management.

Income Statement

Volvo AB's income statement shows mixed results. The TTM data reflects a decline in revenue growth rate at -1.26%, indicating a slowdown in sales. Gross profit margin has decreased to 24.57% from 27.34% in the previous year, and net profit margin has also fallen to 7.21% from 9.56%. These declines suggest pressure on profitability. However, the company maintains a solid EBIT margin of 10.37% and an EBITDA margin of 15.18%, showcasing operational efficiency.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 1.46, slightly higher than the previous year, suggesting increased leverage. Return on equity stands at 19.61%, reflecting a strong ability to generate returns on shareholders' investments. The equity ratio is healthy, indicating a balanced capital structure, but the rising debt levels could pose future risks.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -10.81% in the TTM period, indicating reduced cash generation. The operating cash flow to net income ratio is 0.16, showing a moderate conversion of income to cash. The free cash flow to net income ratio is 0.42, suggesting some pressure in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.79B	526.82B	552.76B	473.48B	372.22B	338.45B
Gross Profit	121.31B	144.05B	149.32B	111.74B	89.75B	79.13B
EBITDA	74.95B	91.35B	89.64B	67.01B	63.08B	45.05B
Net Income	35.58B	50.39B	49.83B	32.72B	32.79B	19.32B
Balance Sheet
Total Assets	644.98B	714.56B	674.07B	629.06B	515.86B	510.82B
Cash, Cash Equivalents and Short-Term Investments	57.12B	73.49B	83.42B	67.18B	50.79B	71.92B
Total Debt	250.90B	258.85B	233.52B	205.05B	151.45B	152.78B
Total Liabilities	473.11B	517.20B	493.33B	462.83B	371.74B	362.68B
Stockholders Equity	171.80B	194.05B	177.79B	162.72B	141.04B	145.29B
Cash Flow
Free Cash Flow	17.56B	28.06B	3.00B	7.40B	11.81B	13.29B
Operating Cash Flow	42.25B	46.44B	26.68B	33.24B	33.65B	30.61B
Investing Cash Flow	-26.34B	-24.14B	-26.84B	-21.49B	-1.49B	-9.94B
Financing Cash Flow	-24.50B	-21.87B	1.82B	7.48B	-57.55B	6.44B

Volvo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLVLY, the sentiment is Positive. The current price of 29.77 is below the 20-day moving average (MA) of 31.13, above the 50-day MA of 29.13, and above the 200-day MA of 28.51, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 67.83 is Neutral, neither overbought nor oversold. The STOCH value of 75.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLVLY.

Volvo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	76 Outperform	$273.19B	29.95	46.30%	0.98%	-1.51%	-9.69%
PCAR	74 Outperform	$58.57B	21.83	14.15%	3.83%	-15.29%	-42.93%
OSK	71 Outperform	$8.25B	12.72	15.42%	1.56%	-2.28%	-0.53%
VLVLY	70 Outperform	$64.75B	18.60	19.38%	5.84%	-4.42%	-28.93%
DE	66 Neutral	$126.42B	25.26	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CNH	55 Neutral	$11.70B	19.69	7.77%	2.67%	-18.10%	-65.24%

Volvo AB Corporate Events

Volvo AB Class B Reports Resilient Q3 2025 Performance

Volvo AB Class B, a prominent player in the automotive industry, is known for its production of trucks, buses, construction equipment, and marine and industrial engines. The company operates globally, with a strong focus on sustainability and innovation.