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Volvo AB Class B (VLVLY)
OTHER OTC:VLVLY
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Volvo AB
(OTC:VLVLY)
70Outperform
Volvo AB (VLVLY) vs. S&P 500 (SPY)
Market Cap
$62.08B
Dividend Yield1.76%
Average Volume (3M)315.80K
Price to Earnings (P/E)13.0
Beta (1Y)0.98
Revenue Growth-4.37%
EPS Growth1.59%
CountryUS
Employees104,251
SectorIndustrials
Sector Strength72
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)2.34
Shares Outstanding1,588,467,400
10 Day Avg. Volume76,158
30 Day Avg. Volume315,801
Financial Highlights & Ratios
PEG Ratio8.20
Price to Book (P/B)N/A
Price to Sales (P/S)0.88
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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 (VLVLY) is a multinational manufacturing company headquartered in Gothenburg, Sweden. The company specializes in the production and distribution of commercial vehicles, including trucks, buses, and construction equipment. Additionally, Volvo AB is involved in marine and industrial engines, offering a diverse range of products and services that cater to various sectors such as transportation, infrastructure, and energy. The company is recognized for its commitment to quality, safety, and sustainability in its operations and product offerings.
How the Company Makes MoneyVolvo AB generates revenue primarily through the sale of its commercial vehicles, which include heavy-duty trucks, buses, and construction equipment. The truck segment is the largest contributor to the company's revenue, with Volvo Trucks, Renault Trucks, and Mack Trucks as key brands under its portfolio. Apart from vehicle sales, the company earns revenue from its aftermarket services, which include parts, maintenance, and repair services, thus providing a steady stream of income. Volvo AB also benefits from its financial services division, offering financing and insurance solutions that support vehicle sales. The company's strategic partnerships and joint ventures, such as its collaboration with Daimler in fuel cell technology, further enhance its revenue potential by driving innovation and expanding market reach. Additionally, Volvo's focus on electrification and autonomous driving technologies positions it to capitalize on emerging trends in the transportation sector.
Volvo AB Financial Statement Overview
Summary
Volvo AB presents a robust financial position with strong profitability, stable cash flows, and a well-managed balance sheet. Despite some fluctuations in revenue growth and free cash flow, the company demonstrates operational efficiency and financial stability.Income Statement
Volvo AB demonstrates strong profitability with consistent gross profit margins and healthy net profit margins across the years. The revenue growth rate has been somewhat volatile but shows a positive trend over the long term. EBIT and EBITDA margins are robust, indicating efficient operational management.82
Very Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, suggesting manageable leverage. Return on equity is healthy, reflecting good profitability relative to shareholders' equity. The equity ratio shows a solid proportion of equity financing, enhancing financial stability.78
Positive
Cash Flow
Volvo's cash flow statement indicates positive free cash flow growth, although it has fluctuated in recent years. The operating cash flow to net income ratio is stable, demonstrating efficient cash conversion from profits. The free cash flow to net income ratio is positive, supporting future investments and debt servicing.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 526.82B | 552.76B | 473.48B | 372.22B | 338.45B | Gross Profit |
| 144.05B | 149.32B | 111.74B | 89.75B | 79.13B | EBIT |
| 66.61B | 67.30B | 45.71B | 43.07B | 27.48B | EBITDA |
| 91.35B | 89.12B | 67.01B | 63.08B | 47.87B | Net Income Common Stockholders |
| 50.39B | 49.83B | 32.72B | 32.79B | 19.32B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 85.39B | 83.42B | 67.18B | 50.79B | 71.92B | Total Assets |
| 714.56B | 674.07B | 629.06B | 515.86B | 510.82B | Total Debt |
| 263.61B | 233.52B | 205.05B | 151.45B | 152.78B | Net Debt |
| 178.44B | 159.99B | 137.96B | 100.83B | 81.07B | Total Liabilities |
| 517.20B | 493.33B | 462.83B | 371.74B | 362.68B | Stockholders Equity |
| 194.05B | 177.79B | 162.72B | 141.04B | 145.29B |
| Cash Flow | Free Cash Flow | |||
| 28.06B | 3.00B | 7.40B | 11.81B | 13.29B | Operating Cash Flow |
| 46.44B | 26.68B | 33.24B | 33.65B | 30.61B | Investing Cash Flow |
| -24.14B | -26.84B | -21.49B | -1.49B | -9.94B | Financing Cash Flow |
| -21.87B | 1.82B | 7.48B | -57.55B | 6.44B |
Volvo AB Technical Analysis
Neutral
30.47
Price Trends
29.22
Positive
27.22
Positive
26.40
Positive
Market Momentum
0.43
Positive
48.34
Neutral
23.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLVLY, the sentiment is Neutral. The current price of 30.47 is below the 20-day moving average (MA) of 31.51, above the 50-day MA of 29.22, and above the 200-day MA of 26.40, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 23.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VLVLY.
Volvo AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $39.63B | 6.84 | 13.42% | 7.50% | 5.00% | 35.92% | |
70 Outperform | $62.08B | 13.00 | 27.08% | 1.76% | -4.37% | 1.59% | |
70 Outperform | $44.28B | 11.35 | 41.27% | 2.22% | 0.14% | 444.36% | |
66 Neutral | $50.98B | 12.29 | 24.93% | 1.27% | -4.29% | -9.76% | |
64 Neutral | $2.06B | ― | -3.92% | 2.83% | -2.57% | -248.28% | |
62 Neutral | $6.30B | 19.09 | 6.46% | 1.53% | -11.10% | -46.32% | |
62 Neutral | $8.22B | 13.91 | 2.36% | 3.08% | 3.85% | -14.32% |
* Industrials Sector Average
Performance Comparison
VLVLY
Volvo AB
30.47
2.21
7.82%
BWA
BorgWarner
28.70
-4.03
-12.31%
CMI
Cummins
322.10
40.47
14.37%
DAN
Dana Holding
14.14
2.18
18.23%
F
Ford Motor
10.00
-1.99
-16.60%
PCAR
Paccar
97.11
-21.45
-18.09%
Volvo AB Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: 16.65% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with strong cash flow and order intake offset by challenges in specific segments and regions. The company's strategic initiatives and joint ventures indicate a positive outlook, but current operational and market challenges present a balanced view.Highlights
Strong Operating Cash Flow
The company reported an all-time high operating cash flow of SEK 24.3 billion for the quarter, driven by effective working capital management.
Positive Book-to-Bill Ratio
Order momentum turned positive with a book-to-bill ratio of 106% for medium and heavy-duty trucks in Q4, indicating a strong order intake.
Volvo Penta's Record Performance
Volvo Penta concluded a very strong year with its best fourth quarter ever, showcasing a diversified product mix and strong demand for heavy-duty engines.
Joint Venture with Daimler Truck
A binding agreement was signed with Daimler Truck to establish a joint venture aimed at developing a software-defined vehicle platform for heavy-duty trucks.
High Return on Capital Employed
Return on capital employed in Industrial Operations remained strong at almost 36%.
Lowlights
Decline in Net Sales
Net sales declined by 6% to SEK 138 billion, impacted by lower volumes and negative currency effects.
Challenges in North America
The Group Trucks North America segment faced increased costs due to the storm Helen and ramp-up of the all-new VNL, negatively affecting margins.
Drop in Construction Equipment Sales
Construction Equipment sales decreased by 17% adjusted for currency, due to lower volumes and negative brand mix.
Electrification Demand Slowdown
Despite a 62% increase in orders for fully electric vehicles and machines, underlying demand in core markets slowed down.
Company Guidance
During the fourth quarter of fiscal year 2024, Volvo Group reported a net sales decline of 6% to SEK 138 billion, amid ongoing market normalization and lower volumes. The company achieved an adjusted operating income of SEK 14 billion, representing a margin of 10.1%, and generated a robust operating cash flow of SEK 24.3 billion, leading to a strong financial position with SEK 86 billion. The order intake for Group Trucks, Volvo Construction Equipment (VCE), and Volvo Penta showed momentum, turning book-to-bill positive. However, specific issues, including the impact of storm Helen in North America and ramp-up costs for the new VNL model, negatively affected the Global Trucks margin. Despite these challenges, the group maintained strong market shares, particularly in Europe, where medium and heavy-duty trucks held around 70% market share for the year. Additionally, the electrification transition continued, with a 62% increase in orders for fully electric vehicles and machines, driven by Renault Trucks and SDLG machines in China. Looking ahead, the company remains focused on maintaining price discipline, enhancing service operations, and leveraging its strong technology pipeline and industrial backbone.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.