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Volvo AB Class B (VLVLY)
OTHER OTC:VLVLY
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Volvo AB
(OTC:VLVLY)
Rating:75Outperform
Price Target:
$31.00
â–²(11.39%Upside)
Volvo AB (VLVLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.51B
Dividend Yield1.93%
Average Volume (3M)1.64K
Price to Earnings (P/E)13.2
Beta (1Y)0.99
Revenue Growth-6.74%
EPS Growth-9.79%
CountryUS
Employees91,154
SectorIndustrials
Sector Strength88
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.51
Shares Outstanding1,588,485,200
10 Day Avg. Volume0
30 Day Avg. Volume1,639
Financial Highlights & Ratios
PEG Ratio-62.69
Price to Book (P/B)2.35
Price to Sales (P/S)0.00
P/FCF Ratio51.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Volvo AB Business Overview & Revenue Model
Company DescriptionVolvo AB, commonly referred to as the Volvo Group, is a leading global manufacturer of trucks, buses, construction equipment, and marine and industrial engines. The company operates through several segments including Trucks, Construction Equipment, Buses, Volvo Penta, and Financial Services. Headquartered in Gothenburg, Sweden, Volvo Group is renowned for its commitment to quality, safety, and environmental care, consistently delivering innovative solutions to enhance the efficiency and sustainability of its products.
How the Company Makes MoneyVolvo AB generates revenue primarily through the sale of its diverse range of vehicles and equipment. The Trucks segment, which includes brands like Volvo, Mack, and Renault, is the largest contributor to the company's revenue. The Construction Equipment segment provides machinery for construction and related industries. The Buses segment offers a variety of public transportation solutions. Volvo Penta supplies engines and power systems for marine and industrial applications. Additionally, the Financial Services segment supports sales by providing financing solutions to customers and dealers. The company also benefits from aftermarket services, including parts, maintenance, and repair services, which help ensure a steady stream of income. Significant partnerships, joint ventures, and collaborations with other automotive and tech companies further enhance Volvo's market presence and contribute to its financial performance.
Volvo AB Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 5.46%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The call presented a mixed picture with several positive aspects, such as strong order intake and market leadership in Europe, but also significant challenges, particularly in North America, with revenue and delivery declines. The sentiment is balanced between these factors.Q1-2025 Updates
Positive Updates
Positive Order Intake
Globally, order intake for the quarter was positive compared to Q1 last year for all business areas. Orders for fully electric vehicles increased by 138%, driven mainly by Renault Trucks and SDLG machines in China.
European Market Leadership
Volvo Trucks maintained market leadership in Europe with a market share exceeding 20% for the first time. Combined with Renault, the group reached over 30% market share in Europe.
Strong Financial Position
The company ended the quarter with a net cash position of SEK77.9 billion and a return on capital employed for industrial operations at 31.8%.
Dividend Distribution
For fiscal year '24, the company distributed SEK37.6 billion to shareholders, the largest dividend from a Swedish company.
Resilient Service Business
The service business showed resilience with underlying service sales growing by 2% year-over-year, adjusted for currency.
Negative Updates
Revenue Decline
Net sales declined to SEK122 billion, a year-over-year drop of 7%. Vehicle and machine sales declined 9% adjusted for currency.
North America Challenges
Increased uncertainty in North America led to a reduced market forecast for Group Trucks and VCE. The region faced under-absorption in production and hesitation among customers to place orders.
Truck Deliveries Decline
Total truck deliveries declined 12% in the quarter with heavy-duty deliveries holding up relatively better at minus 7%.
Operating Income Drop
Adjusted operating income came in at SEK13.3 billion, corresponding to a margin of 10.9%, affected by lower volumes and under-absorption.
Construction Equipment Sales Decline
Construction Equipment sales of machines were down 10%, driven by lower volumes in Europe and North America.
Company Guidance
In the first quarter of the fiscal year 2025, Volvo Group reported a mixed performance in different regions and segments, reflecting global market uncertainties. Net sales declined to SEK122 billion, marking a 7% drop year-over-year, with vehicle sales down 8% and service sales showing a slight 2% increase, adjusted for currency and divestments. The adjusted operating income was SEK13.3 billion, with a margin of 10.9%. The company noted a 12% decline in total truck deliveries and a 7% decrease in Construction Equipment deliveries, though order intake improved across all business areas compared to the previous year. Volvo Trucks maintained market leadership in Europe with a 20.1% market share, while Renault and Mack brands showed growth in truck orders. The electrification segment saw a 138% increase in orders for fully electric vehicles, driven by Renault Trucks and SDLG in China. Despite a challenging North American market, where the forecast was adjusted downward due to increased uncertainties, Mack Trucks regained market share with improvements in supply chain issues. The group's financial position remained strong, with a net cash position of SEK77.9 billion and a return on capital employed in industrial operations at 31.8%. Earnings per share were reported at SEK4.86. The company continues to focus on innovation, cost control, and adapting to market dynamics, emphasizing the importance of maintaining strong regional value chains and global capabilities.Volvo AB Financial Statement Overview
Summary
Volvo AB displays a robust financial profile with strong profitability and efficient operations. The company's balance sheet is solid, with a moderate level of leverage, and it sustains healthy cash flow generation. Key areas to watch include the slight decline in revenue and Free Cash Flow, which may indicate potential areas for improvement. Nevertheless, the company's financial health remains strong, positioning it well within the Agricultural - Machinery industry.Income Statement
Volvo AB demonstrates strong income statement metrics, showcasing robust profitability and growth. The TTM (Trailing-Twelve-Months) Gross Profit Margin is approximately 26.71%, and the Net Profit Margin is around 8.93%, indicating efficient cost management and profitability. Although the TTM revenue has decreased slightly compared to the previous year, the company has maintained healthy EBIT and EBITDA margins of approximately 12.05% and 16.69% respectively, reflecting solid operational performance. The consistency in margins and profitability highlights the company's stable financial health.85
Very Positive
Balance Sheet
Volvo AB's balance sheet is stable with a Debt-to-Equity Ratio of approximately 1.30, indicating a moderate level of leverage. The Return on Equity (ROE) in the TTM is about 23.57%, showing effective use of equity capital to generate profits. The Equity Ratio stands at 28.51%, reflecting a solid capital structure. While the equity ratio is healthy, continual monitoring of debt levels is advisable to ensure long-term financial stability.78
Positive
Cash Flow
The company's cash flow position is strong with a positive Free Cash Flow of 23.63 billion in the TTM. However, there is a noticeable decrease in Free Cash Flow compared to the previous year, reflecting a -15.76% growth rate. The Operating Cash Flow to Net Income Ratio stands at 0.96, indicating efficient cash generation from operations. Despite the decrease in Free Cash Flow, Volvo AB maintains a stable cash flow generation, supporting its operational and investment needs.80
Positive
| 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 | EBIT |
| 62.32B | 66.61B | 67.30B | 45.71B | 43.07B | 27.48B | EBITDA |
| 86.36B | 91.35B | 89.12B | 67.01B | 63.08B | 47.87B | Net Income Common Stockholders |
| 46.20B | 50.39B | 49.83B | 32.72B | 32.79B | 19.32B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 90.90B | 73.49B | 83.42B | 67.18B | 50.79B | 71.92B | Total Assets |
| 687.67B | 714.56B | 674.07B | 629.06B | 515.86B | 510.82B | Total Debt |
| 254.39B | 258.85B | 233.52B | 205.05B | 151.45B | 152.78B | Net Debt |
| 163.67B | 185.58B | 159.99B | 137.96B | 100.83B | 81.07B | Total Liabilities |
| 488.49B | 517.20B | 493.33B | 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
Positive
27.83
Price Trends
26.97
Positive
27.65
Positive
25.89
Positive
Market Momentum
0.04
Positive
52.41
Neutral
77.03
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 27.83 is below the 20-day moving average (MA) of 27.89, above the 50-day MA of 26.97, and above the 200-day MA of 25.89, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 77.03 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $49.76B | 14.38 | 19.90% | 1.39% | -8.64% | -31.57% | |
75 Outperform | $57.51B | 13.18 | 25.11% | 1.93% | -6.74% | -9.79% | |
73 Outperform | $168.64B | 17.47 | 55.67% | 1.57% | -5.58% | -7.37% | |
72 Outperform | $139.70B | 24.95 | 24.07% | 1.26% | -22.26% | -37.83% | |
66 Neutral | $16.09B | 15.50 | 13.26% | 1.94% | -21.99% | -52.11% | |
66 Neutral | $4.51B | 12.29 | 5.40% | 3.67% | 4.15% | -12.21% | |
55 Neutral | $7.66B | 46.40 | -13.60% | 1.13% | -23.02% | -152.78% |
* Industrials Sector Average
Performance Comparison
VLVLY
Volvo AB
27.83
3.46
14.20%
AGCO
Agco
102.39
-1.78
-1.71%
CAT
Caterpillar
363.14
42.00
13.08%
CNH
CNH Industrial
12.94
2.73
26.74%
DE
Deere
520.84
148.42
39.85%
PCAR
Paccar
93.88
-8.96
-8.71%
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.