Volvo AB Class B (VLVLY)
OTHER OTC:VLVLY
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Volvo AB
(OTC:VLVLY)
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Rating:62Neutral
Price Target:
$37.00
â–²(24.29% Upside)
Action:DowngradedDate:04/25/26
The score is driven primarily by solid underlying profitability and cash generation, tempered by slowing growth and elevated leverage. Technicals are moderately constructive with neutral momentum, valuation support is limited by a mid-range P/E and modest yield, and the earnings call was balanced—upgraded market outlook and strong cash metrics offset by FX/tariffs, under-absorption, and weaker Americas demand.
Positive Factors
Strong margins
Sustained mid-to-high single digit EBIT margins and strong gross margins indicate durable pricing power and cost control across trucks, CE and power solutions. This supports cash generation, investment capacity and resilience through cycles, underpinning medium-term profitability.
Negative Factors
High leverage
A debt-heavy capital structure reduces financial flexibility and raises refinancing and interest-rate sensitivity in downturns. Elevated leverage constrains the firm's ability to pursue large capex, acquisitions or aggressive buybacks without improving cash flow or reducing debt levels.
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Positive Factors
Negative Factors
Strong margins
Sustained mid-to-high single digit EBIT margins and strong gross margins indicate durable pricing power and cost control across trucks, CE and power solutions. This supports cash generation, investment capacity and resilience through cycles, underpinning medium-term profitability.
Read all positive factors
Volvo AB (VLVLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.07B
Dividend Yield5.84%
Average Volume (3M)260.67K
Price to Earnings (P/E)18.9
Beta (1Y)1.06
Revenue Growth2.12%
EPS Growth-19.55%
CountryUS
Employees91,154
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.44
Shares Outstanding1,591,908,600
10 Day Avg. Volume45,888
30 Day Avg. Volume260,671
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)3.36
Price to Sales (P/S)1.25
P/FCF Ratio23.37
Enterprise Value/Market Cap11.83
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit7.33
Enterprise Value/Ebitda11.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.28
Revenue Forecast (FY)$53.28B
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...
How the Company Makes Money
Volvo AB primarily makes money by selling commercial vehicles and equipment and by monetizing their lifecycle through service and financing. Key revenue streams include: (1) Product sales: revenue from the sale of heavy-duty trucks (its largest bu...
Volvo AB Key Performance Indicators (KPIs)
Volvo AB Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call reflects a fundamentally resilient operational and financial performance (strong margins, cash generation, ROCE, and solid growth in services, Penta and Buses) while acknowledging regional demand weakness (North and South America), significant FX and tariff headwinds, and near-term manufacturing under-absorption costs. Management has upgraded market forecasts for key regions and highlighted strategic product and commercial milestones, indicating confidence in a gradual recovery despite short‑term headwinds.Positive Updates
Solid Q4 profitability and margins
Adjusted operating income of SEK 12.8 billion in Q4 with an adjusted operating margin of 10.3%; full-year 2025 adjusted operating income SEK 51 billion with a margin of 10.7%.
Negative Updates
Weak truck volumes in North and South America
Truck deliveries declined 3% in Q4 to 56,700 vehicles; vehicle sales down ~4% FX-adjusted in Trucks segment; management expects North and South American volumes to remain weak into Q1 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Q4 profitability and margins
Adjusted operating income of SEK 12.8 billion in Q4 with an adjusted operating margin of 10.3%; full-year 2025 adjusted operating income SEK 51 billion with a margin of 10.7%.
Read all positive updates
Company Guidance
Volvo’s forward guidance emphasized revised 2026 market assumptions and near‑term financial impacts: truck market forecasts for 2026 are 265,000 heavy‑duty units in North America (up 15,000 vs Q3) and 305,000 in Europe (up 10,000), Brazil reiterated at 75,000 while China and India are unchanged; construction‑equipment guidance notes North America flat (a 5‑pp upgrade vs Q3), Europe midpoint +5%, China midpoint +5%, and South America/Asia flat. Near‑term headwinds include an expected net tariff impact of about SEK 1 billion in Q1 (SEK 0.8 billion in Q4), a negative Q1 FX transaction/translation effect of ~SEK 2 billion, R&D capitalization of ~SEK 3 billion for 2026 (year‑over‑year ~SEK 1 billion lower), an estimated full‑year tax rate of 24%, and continued elevated but slightly lower CapEx in 2026 as Mexico ramps; operational pacing assumptions include higher under‑absorption in Q1 and balanced truck book‑to‑bill (~94% rolling, with CE at 118% Q4, Penta 109% Q4/102% 12‑m, buses ~91% Q4).Volvo AB Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 468.16B | 479.18B | 526.82B | 552.76B | 473.48B | 372.22B |
| Gross Profit | 114.67B | 116.87B | 144.05B | 149.32B | 111.74B | 89.75B |
| EBITDA | 70.74B | 72.70B | 91.35B | 89.64B | 67.01B | 63.08B |
| Net Income | 32.88B | 34.46B | 50.39B | 49.83B | 32.72B | 32.79B |
Balance Sheet | ||||||
| Total Assets | 682.48B | 648.59B | 714.56B | 674.07B | 629.06B | 515.86B |
| Cash, Cash Equivalents and Short-Term Investments | 72.57B | 73.50B | 73.49B | 83.42B | 67.18B | 50.79B |
| Total Debt | 257.63B | 248.06B | 258.85B | 233.52B | 205.05B | 151.45B |
| Total Liabilities | 491.70B | 470.11B | 517.20B | 493.33B | 462.83B | 371.74B |
| Stockholders Equity | 190.67B | 178.40B | 194.05B | 177.79B | 162.72B | 141.04B |
Cash Flow | ||||||
| Free Cash Flow | 23.39B | 25.62B | 28.06B | 3.00B | 7.40B | 11.81B |
| Operating Cash Flow | 49.77B | 42.86B | 46.44B | 26.68B | 33.24B | 33.65B |
| Investing Cash Flow | -33.56B | -25.83B | -24.14B | -26.84B | -21.49B | -1.49B |
| Financing Cash Flow | -33.70B | -23.86B | -21.87B | 1.82B | 7.48B | -57.55B |
Volvo AB Technical Analysis
Positive
29.77
Price Trends
34.71
Positive
33.26
Positive
30.63
Positive
Market Momentum
0.41
Negative
60.38
Neutral
75.42
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 32.71, below the 50-day MA of 34.71, and below the 200-day MA of 30.63, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.42 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $386.56B | 30.12 | 45.10% | 0.98% | 4.29% | -14.76% | |
73 Outperform | $151.97B | 54.83 | 18.93% | 1.34% | -2.66% | -21.47% | |
72 Outperform | $66.84B | 24.25 | 12.57% | 3.83% | -15.50% | -42.99% | |
66 Neutral | $9.42B | 12.46 | 14.57% | 1.56% | -3.10% | -3.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $71.07B | 18.90 | 18.66% | 5.84% | 2.12% | -19.55% | |
56 Neutral | $12.72B | 22.56 | 6.58% | 2.67% | -8.81% | -60.95% |
* Industrials Sector Average
VLVLY
Volvo AB
34.83
7.85
29.09%
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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.