Volvo AB (VLVLY) AI Stock Analysis

• Market Cap: $61.04B
• Dividend Yield: 6.23%
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.04
• 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: 3,963
• 30 Day Avg. Volume: 1,321
• 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: 1.29
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.63
• Enterprise Value/Ebitda: 1.04
• 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: 74 Outperform
• Price Target: $33.00 ▲(10.85% Upside)

Volvo AB's stock score is driven by strong technical indicators and attractive valuation, despite challenges in financial performance due to declining revenue growth and increasing leverage. The lack of earnings call data and corporate events did not impact the score.

Positive Factors

Electrification Growth

Volvo's significant increase in electric vehicle orders indicates strong progress in electrification, aligning with global sustainability trends and positioning the company for long-term growth in the evolving automotive market.

Construction Equipment Expansion

The growth in construction equipment deliveries, particularly in China, showcases Volvo's ability to capitalize on infrastructure development, supporting revenue diversification and resilience against market fluctuations.

Strong Cash Position

A robust cash position provides Volvo with financial flexibility to invest in strategic initiatives, manage debt, and navigate economic uncertainties, ensuring long-term operational stability and growth potential.

Negative Factors

Declining Truck Volumes

The decline in truck volumes, especially in key markets like North America, poses a challenge to revenue growth and market share, necessitating strategic adjustments to regain momentum in this critical segment.

Zero-Emission Transition Challenges

The financial impact from the transition to zero-emission solutions highlights the challenges and costs associated with shifting to sustainable technologies, potentially affecting short- to medium-term profitability.

Increasing Leverage

Rising leverage levels may constrain Volvo's financial flexibility, increasing risk in economic downturns and potentially impacting its ability to invest in growth and innovation initiatives.

Volvo AB Business Overview & Revenue Model

Company Description

Volvo AB is a Swedish multinational manufacturing company primarily known for its production of trucks, buses, construction equipment, and marine and aerospace components. Founded in 1927, Volvo operates through several business segments, including Volvo Trucks, Volvo Buses, Volvo Construction Equipment, and Volvo Penta, providing innovative and sustainable transport solutions. The company is committed to safety, quality, and environmental care, positioning itself as a leader in the automotive and transport industries.

How the Company Makes Money

Volvo AB generates revenue through multiple streams, primarily from the sale of vehicles and equipment across its various segments. The largest portion of its revenue comes from the sale of trucks and buses, catering to both commercial and public transportation needs. Additionally, Volvo earns income from its construction equipment and marine products through direct sales and leasing agreements. The company also benefits from after-sales services, including maintenance, parts sales, and financing solutions, which provide a steady revenue stream. Strategic partnerships with other companies and participation in joint ventures enhance its market reach and innovation capabilities, further contributing to its earnings. Moreover, Volvo's commitment to sustainability and electrification is expected to open new revenue opportunities in the growing electric vehicle market.

Volvo AB Financial Statement Overview

Summary

Volvo AB shows strong profitability with healthy margins and return on equity. However, challenges include declining revenue growth and increasing leverage. Cash flow management is crucial due to a significant decrease in free cash flow.

Income Statement

Volvo AB's income statement shows a solid gross profit margin of 25.16% for the TTM, though it has decreased from previous years. The net profit margin is stable at 7.61%, indicating consistent profitability despite a slight decline in revenue growth. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the negative revenue growth rate of -3.35% in the TTM suggests a need for renewed growth strategies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.62 in the TTM, indicating significant leverage, which could pose risks if not managed carefully. The return on equity is strong at 20.76%, showcasing effective use of shareholder funds. The equity ratio is moderate, suggesting a balanced asset structure, but the increasing debt levels warrant attention.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -16.70% in the TTM, which is concerning. The operating cash flow to net income ratio of 0.14 and free cash flow to net income ratio of 0.46 indicate adequate cash generation relative to earnings, but the declining free cash flow trend needs to be addressed to ensure long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.08B	526.82B	552.76B	473.48B	372.22B	338.45B
Gross Profit	125.84B	144.05B	149.32B	111.74B	89.75B	79.13B
EBITDA	76.06B	91.35B	89.64B	67.01B	63.08B	45.05B
Net Income	38.06B	50.39B	49.83B	32.72B	32.79B	19.32B
Balance Sheet
Total Assets	677.60B	714.56B	674.07B	629.06B	515.86B	510.82B
Cash, Cash Equivalents and Short-Term Investments	61.63B	73.49B	83.42B	67.18B	50.79B	71.92B
Total Debt	265.59B	258.85B	233.52B	205.05B	151.45B	152.78B
Total Liabilities	510.59B	517.20B	493.33B	462.83B	371.74B	362.68B
Stockholders Equity	163.91B	194.05B	177.79B	162.72B	141.04B	145.29B
Cash Flow
Free Cash Flow	19.68B	28.06B	3.00B	7.40B	11.81B	13.29B
Operating Cash Flow	42.73B	46.44B	26.68B	33.24B	33.65B	30.61B
Investing Cash Flow	-23.81B	-24.14B	-26.84B	-21.49B	-1.49B	-9.94B
Financing Cash Flow	-12.04B	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 28.38, above the 50-day MA of 28.26, and above the 200-day MA of 28.40, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 98.65 is Negative, 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	$272.58B	29.89	46.30%	0.99%	-1.51%	-9.69%
PCAR	74 Outperform	$55.61B	20.73	14.15%	3.98%	-15.29%	-42.93%
VLVLY	74 Outperform	$61.04B	17.48	19.38%	6.23%	-4.42%	-28.93%
OSK	71 Outperform	$7.89B	12.16	15.42%	1.59%	-2.28%	-0.53%
DE	66 Neutral	$126.83B	25.36	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CNH	54 Neutral	$11.57B	19.45	7.77%	2.63%	-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.