AUTOLIV INC (ALV) has a current P/E ratio of 12.3, compared to its historical median P/E of 15.1. The stock is currently considered Fair based on its historical valuation range.
AUTOLIV INC (ALV) has a 5-year average return on invested capital (ROIC) of 17.0%. This indicates strong capital allocation and a potential competitive advantage.
AUTOLIV INC (ALV) has a market capitalization of $8.8B. It is classified as a mid-cap stock.
Yes, AUTOLIV INC (ALV) pays a dividend with a trailing twelve-month yield of 2.82%. The company also returns capital through share buybacks, with a buyback yield of 3.41%.
Based on historical P/E analysis, AUTOLIV INC (ALV) appears fair. The current P/E of 12.3 is 19% below its historical median of 15.1. The estimated fair value CAGR (P/E method) is 16.6%.
AUTOLIV INC (ALV) operates in the Motor Vehicle Parts & Accessories industry, within the Consumer Cyclical sector.
AUTOLIV INC (ALV) reported annual revenue of $10.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Autoliv is a leading global developer, manufacturer, and supplier of passive safety systems to the automotive industry, with a broad product portfolio including airbag modules, steering wheels, inflators, seatbelts, battery cut-off switches, and pedestrian protection systems. The company operates through a single reportable segment focused on passive safety products, generating $10.8 billion in 2025 sales, with approximately 68% from airbags and steering wheels and 32% from seatbelts; it serves the world's largest car manufacturers across 62 production facilities in 23 countries. Autoliv's business model is driven by two primary factors: light vehicle production (LVP) and content per vehicle (CPV), with the company demonstrating consistent outperformance of the broader market through continuous development of new safety technologies and a strong global footprint in both products and engineering. The company has expanded beyond traditional automotive passive safety into Mobility Safety Solutions, developing safety systems for commercial vehicles, motorcycles, and bikes, while also advancing into automotive safety electronics through strategic partnerships. Autoliv's competitive moat is built on its superior market position—growing global market share from 27% in 1997 to approximately 44% in 2025—supported by a steady flow of new passive safety technologies, strong quality focus, and disciplined capital management that has enabled a compound annual growth rate of approximately 5% since 1997 compared to the market rate of approximately 2.8%. The company operates across four geographic regions (the Americas, Europe, China, and Asia excluding China) with approximately 64,300 employees worldwide as of December 31, 2025.
【Flat growth with margin resilience】 Management expects 2026 organic sales to be flat overall, with growth in China, India, and South America offset by lower sales in North America and Europe due to a limited number of new product launches in those regions. The company anticipates margin expansion supported by higher operational efficiency, ongoing structural cost reductions, and improved light vehicle production call-off volatility, though headwinds from higher raw material costs (particularly gold) and increased depreciation from recent capacity investments are expected to partially offset these gains. Autoliv continues to expect significant outperformance of light vehicle production in both China and India in 2026, driven by new product launches and content-per-vehicle growth, while maintaining strong operating and free operating cash flow generation with capital expenditures expected to remain below 5% of sales. The company remains committed to high levels of shareholder returns supported by its positive cash flow and strong balance sheet, with management confident in its ability to progress toward its long-term 12% adjusted operating margin target through continued execution of internal improvement initiatives.
| Metric | Target | Period |
|---|---|---|
| Organic sales growth | flat | FY2026 |
| Adjusted operating margin | 10.5%-11% | FY2026 |
| Operating cash flow | around $1.2 billion | FY2026 |
| Capital expenditures | below 5% of sales | FY2026 |
| Tax rate | around 28% | FY2026 |
Organic sales growth (FY2026): “We expect to outperform light vehicle production by around 1 percentage point, as our organic sales is expected to be flat, while global light vehicle production is expected to decline by 1%.”
Adjusted operating margin (FY2026): “The guidance for adjusted operating margin is around 10.5%-11%.”
Operating cash flow (FY2026): “Operating cash flow is expected to be around $1.2 billion.”
Capital expenditures (FY2026): “We expect CapEx to be below 5% of sales.”
Tax rate (FY2026): “we expect a tax rate of around 28%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 11.0B | 10.8B | 10.4B | 10.5B | 8.8B | 8.2B |
| Net Income | 709M | 735M | 646M | 488M | 423M | 435M |
| EPS | $9.32 | $9.55 | $8.04 | $5.72 | $4.85 | $4.96 |
| Free Cash Flow | 580M | 716M | 480M | 409M | 128M | 296M |
| ROIC | 18.2% | 21.2% | 19.5% | 15.4% | 14.0% | 15.1% |
| Gross Margin | 19.3% | 19.2% | 18.5% | 17.4% | 15.8% | 18.4% |
| Debt/Equity | 0.79 | 0.84 | 0.84 | 0.73 | 0.68 | 0.76 |
| Dividends/Share | $3.32 | $3.12 | $2.74 | $2.66 | $2.58 | $1.88 |
| Operating Income | 1.1B | 1.1B | 979M | 690M | 659M | 675M |
| Operating Margin | 9.7% | 10.1% | 9.4% | 6.6% | 7.5% | 8.2% |
| ROE | 26.9% | 30.3% | 26.7% | 18.9% | 16.1% | 17.3% |
| Shares Outstanding | 75M | 77M | 80M | 85M | 87M | 88M |
AUTOLIV INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
AUTOLIV INC trades at 12.3x trailing earnings, compared to its 15-year median P/E of 15.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 12.3x vs a median of 19.0x. The company's 5-year average ROIC is 17.0% with a gross margin of 17.9%. Total shareholder yield (dividends + buybacks) is 6.2%. At current prices, the estimated annualized return to fair value is +23.1%.
AUTOLIV INC (ALV) has a net profit margin of 6.8%. This is a modest margin.
AUTOLIV INC (ALV) generated $716 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AUTOLIV INC (ALV) has a debt-to-equity ratio of 0.84. This indicates moderate leverage.
AUTOLIV INC (ALV) reported earnings per share (EPS) of $9.55 in its most recent fiscal year.
AUTOLIV INC (ALV) has a return on equity (ROE) of 30.3%. This indicates the company generates strong returns for shareholders.
AUTOLIV INC (ALV) has a 5-year average gross margin of 17.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for AUTOLIV INC (ALV), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AUTOLIV INC (ALV) has a book value per share of $33.42, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 organic sales to be flat overall, with growth in China, India, and South America offset by lower sales in North America and Europe due to a limited number of new product launches in those regions. The company anticipates margin expansion supported by higher operational efficiency, ongoing structural cost reductions, and improved light vehicle production call-off volatility, though headwinds from higher raw material costs (particularly gold) and increased depreciation from recent capacity investments are expected to partially offset these gains. Autoliv continues to expect significant outperformance of light vehicle production in both China and India in 2026, driven by new product launches and content-per-vehicle growth, while maintaining strong operating and free operating cash flow generation with capital expenditures expected to remain below 5% of sales. The company remains committed to high levels of shareholder returns supported by its positive cash flow and strong balance sheet, with management confident in its ability to progress toward its long-term 12% adjusted operating margin target through continued execution of internal improvement initiatives.
Based on recent SEC filings and earnings calls, AUTOLIV INC (ALV) has provided the following forward guidance: Organic sales growth: flat (FY2026); Adjusted operating margin: 10.5%-11% (FY2026); Operating cash flow: around $1.2 billion (FY2026); Capital expenditures: below 5% of sales (FY2026); Tax rate: around 28% (FY2026).