📊 ALV Key Takeaways
Is Autoliv Inc. (ALV) a Good Investment?
Autoliv demonstrates profitable operations with 4.1% revenue growth, but faces critical cash generation problems: operating cash flow is negative at -$76M despite $141M net income, and free cash flow is severely negative at -$161M. Combined with deteriorating liquidity (1.08x current ratio, 0.82x quick ratio) and flat earnings growth, the company shows signs of working capital stress and potential liquidity constraints that outweigh operational profitability.
Autoliv shows solid fundamental quality with positive revenue growth, double-digit operating margins, and strong cash generation that converts into meaningful free cash flow. Profitability appears durable, supported by 10.6x interest coverage and healthy returns on equity and assets, though flat net income and tight liquidity suggest execution and working-capital discipline remain important.
Autoliv Inc. Key Strengths (ALV)
- Positive net income of $141M demonstrates core operational profitability
- Strong interest coverage ratio of 9.1x indicates solid ability to service debt obligations
- Moderate leverage at 0.65x debt-to-equity provides some balance sheet cushion
- Consistent profitability with 19.2% gross margin, 10.1% operating margin, and 6.8% net margin
- Strong cash generation with $1.16B operating cash flow and $716M free cash flow
- Balanced leverage profile with debt/equity of 0.67x and solid 10.6x interest coverage
ALV Stock Risks: Autoliv Inc. Investment Risks
- Critical cash flow mismatch: -$76M operating cash flow against +$141M net income signals severe working capital deterioration or quality of earnings concerns
- Severely negative free cash flow at -$161M with 5.8% FCF margin indicates unsustainable capital structure and potential refinancing risk
- Tight liquidity with current ratio of 1.08x and quick ratio of 0.82x below safe thresholds, leaving minimal cushion for operational disruptions
- Flat net income growth (0% YoY) combined with modest revenue growth (4.1%) indicates margin compression and operational efficiency deterioration
- Low returns on equity (5.4%) and assets (1.7%) suggest capital is not being deployed productively
- Net income was flat year over year despite revenue growth, which may indicate cost pressure or limited operating leverage
- Liquidity is somewhat tight with a 1.05x current ratio and 0.79x quick ratio
- Cyclical automotive production exposure could pressure margins and cash flow if customer demand weakens
Key Metrics to Watch
- Operating cash flow trend and working capital management
- Free cash flow sustainability and cash burn rate
- Liquidity position: cash balance, availability of credit facilities, debt covenants
- Gross and operating margin trends for signs of pricing power or cost inflation
- Capital expenditure requirements relative to cash generation capacity
- Operating margin and net income growth
- Free cash flow generation and working capital/liquidity ratios
Autoliv Inc. (ALV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Autoliv Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ALV Profit Margin, ROE & Profitability Analysis
ALV vs Automotive Sector: How Autoliv Inc. Compares
How Autoliv Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Autoliv Inc. Stock Overvalued? ALV Valuation Analysis 2026
Based on fundamental analysis, Autoliv Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Autoliv Inc. Balance Sheet: ALV Debt, Cash & Liquidity
ALV Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
ALV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.6B | $141.0M | $1.88 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Autoliv Inc. Dividends, Buybacks & Capital Allocation
ALV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Autoliv Inc. (CIK: 0001034670)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALV
What is the AI rating for ALV?
Autoliv Inc. (ALV) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALV's key strengths?
Claude: Positive net income of $141M demonstrates core operational profitability. Strong interest coverage ratio of 9.1x indicates solid ability to service debt obligations. ChatGPT: Consistent profitability with 19.2% gross margin, 10.1% operating margin, and 6.8% net margin. Strong cash generation with $1.16B operating cash flow and $716M free cash flow.
What are the risks of investing in ALV?
Claude: Critical cash flow mismatch: -$76M operating cash flow against +$141M net income signals severe working capital deterioration or quality of earnings concerns. Severely negative free cash flow at -$161M with 5.8% FCF margin indicates unsustainable capital structure and potential refinancing risk. ChatGPT: Net income was flat year over year despite revenue growth, which may indicate cost pressure or limited operating leverage. Liquidity is somewhat tight with a 1.05x current ratio and 0.79x quick ratio.
What is ALV's revenue and growth?
Autoliv Inc. reported revenue of $2.8B.
Does ALV pay dividends?
Autoliv Inc. pays dividends, with $65.0M distributed to shareholders in the trailing twelve months.
Where can I find ALV SEC filings?
Official SEC filings for Autoliv Inc. (CIK: 0001034670) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALV's EPS?
Autoliv Inc. has a diluted EPS of $1.88.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ALV's fundamental grade?
Based on our AI fundamental analysis in June 2026, Autoliv Inc. has a B grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ALV stock overvalued or undervalued?
Valuation metrics for ALV: ROE of 5.4% (sector avg: 12%), net margin of 5.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is ALV's AI grade for 2026?
Our dual AI analysis gives Autoliv Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALV's free cash flow?
Autoliv Inc.'s operating cash flow is $-76.0M, with capital expenditures of $85.0M. FCF margin is -5.8%.
How does ALV compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 5.1% (avg: 6%), ROE 5.4% (avg: 12%), current ratio 1.08 (avg: 1.2).