Investment Thesis
Autoliv demonstrates solid fundamental strength with robust profitability metrics (28.6% ROE, 10.1% operating margin) and healthy revenue growth of 4.1% YoY despite a mature automotive supplier market. The company generates strong free cash flow of $716M with a healthy interest coverage ratio of 10.6x, indicating financial stability and capacity for debt service and shareholder returns.
ALV Strengths
- Exceptional return on equity of 28.6% indicates efficient capital deployment
- Strong free cash flow generation of $716M provides financial flexibility
- Solid interest coverage ratio of 10.6x demonstrates manageable debt burden
- Consistent profitability with 6.8% net margin in cyclical automotive industry
- Moderate leverage at 0.67x Debt/Equity ratio provides balance sheet cushion
ALV Risks
- Weak liquidity position with current ratio of 1.05x and quick ratio of 0.79x suggests limited short-term flexibility
- Revenue growth of 4.1% is modest for a company requiring significant ongoing capex of $441M annually
- Flat net income growth (0.0% YoY) despite revenue gains indicates margin pressure or operational headwinds
- Gross margin of 19.2% is relatively thin in a capital-intensive business
- High insider trading activity (32 Form 4 filings in 90 days) warrants monitoring for sentiment shifts
Key Metrics to Watch
- Operating margin trends and gross margin sustainability amid cost pressures
- Free cash flow conversion and capital allocation efficiency
- Current and quick ratios to assess working capital adequacy
- Net income growth acceleration relative to revenue expansion
- Debt reduction trajectory and leverage management
ALV Financial Metrics
ALV Profitability Ratios
ALV Balance Sheet & Liquidity
ALV 5-Year Financial Trend
5-Year Trend Summary: AUTOLIV INC's revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.72 reflects profitable operations.
ALV Growth Metrics (YoY)
ALV Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.6B | $138.0M | $1.74 |
| Q2 2025 | $2.6B | $138.0M | $1.71 |
| Q1 2025 | $2.6B | $126.0M | $1.52 |
| Q3 2024 | $2.6B | $134.0M | $1.57 |
| Q2 2024 | $2.6B | $53.0M | $0.61 |
| Q1 2024 | $2.5B | $74.0M | $0.86 |
| Q3 2023 | $2.3B | $105.0M | $1.21 |
| Q2 2023 | $2.1B | $53.0M | $0.61 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALV Capital Allocation
ALV SEC Filings
Access official SEC EDGAR filings for AUTOLIV INC (CIK: 0001034670)