Autoliv Inc. (ALV) — Expensive With Mediocre Growth Factors
Autoliv shares moved 18.7% over the last 52 weeks, with a high of $97.45 and a low of $65.74. During this time, the stock outperformed the S&P 500 index by 22.0%. As of April 2023, the company's 50-day average price is $90.86. Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. The mid-cap Consumer Discretionary company has 61,499 full time employees and is based in Stockholm, Sweden. Autoliv has not offered any dividends in the last year.
Shareholders Are Confronted With a Declining EPS Growth Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $8,547,600 | $7,447,400 | $8,230,000 | $8,842,000 |
| Gross Margins | 18.5% | 16.7% | 18.4% | 15.8% |
| Operating Margins | 8.5% | 5.1% | 8.2% | 7.4% |
| Net Margins | 5.4% | 2.51% | 5.29% | 4.78% |
| Net Income | $461,500 | $186,900 | $435,000 | $423,000 |
| Interest Cost | -$65,900 | -$68,400 | -$56,000 | -$54,000 |
| Depreciation & Amort. | -$350,600 | -$370,900 | -$394,000 | -$363,000 |
| Earnings Per Share | $5.29 | $2.14 | $4.96 | $4.6 |
| Diluted Shares | 87,400 | 87,500 | 87,700 | 85,830 |
| Free Cash Flow | $164,600 | $509,300 | $296,000 | $128,000 |
| Capital Expenditures | -$476,100 | -$339,600 | -$458,000 | -$585,000 |
| Net Current Assets | -$1,646,700 | -$1,464,700 | -$1,214,000 | -$1,377,000 |
| Current Ratio | 1.25 | 1.36 | 1.3 | 1.02 |
| Long Term Debt | $1,726,100 | $2,109,600 | $1,662,000 | $1,054,000 |
| Net Debt / EBITDA | 1.59 | 1.74 | 1.01 | 1.19 |
Autoliv's Valuation Is in Line With Its Sector Averages:
Compared to the Consumer Discretionary sector's average of 22.33, Autoliv has a trailing twelve month P/E ratio of 19.8 and, according to its EPS guidance of $9.38, an expected P/E ratio of 9.7. Autoliv's PEG ratio is 2.19 based on the 9.0% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. However, Autoliv is possibly undervalued in terms of its book value because its P/B ratio is 2.84 compared to its sector average of 3.12. As of the date of publication, the company's shares are trading 60.0% above their Graham number of $53.84.
Autoliv Has an Average Rating of Buy:
19 analysts are following Autoliv and have set target prices ranging from $86.0 to $135.0 per share. On average, they have given the company a rating of buy. At the current price of $90.86, ALV is trading -12.1% away from its average analyst target price of $103.32 per share, implying an analyst consensus of some upside potential for the stock. The company has an average amount of shares sold short since 3.4% of the company's shares are tied to short positions. Institutions own 59.9% of Autoliv's shares, while the insider ownership rate stands at 0.22%. which is a small amount of insider investors. The company's biggest shareholder is Cevian Capital II Gp Ltd with a 7% stake in the company worth $542,559,770.
