Autoliv Inc. Common Stock (ALV)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $430 million in annual free cash flow (4.9% yield on market cap)
• High return on equity of 28.4% demonstrating efficient capital deployment
• Attractive 2.8% dividend yield providing steady income returns
• Established organization with 57,690 employees providing operational scale

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Autoliv Inc. Common Stock is a small-cap consumer cyclical company valued at $8.8 billion. The business generates $11.0 billion in annual revenue with a 1.3% net margin and $430 million in free cash flow. From a quality standpoint, Autoliv shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.8 warrants caution. On valuation, the stock is attractively valued at 12.5x earnings, with trades above its Graham Number with a negative 37% margin. Growth dynamics show revenue growing at 6.8% and profit growth of -15.6%. The 2.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Autoliv's consistent 28% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $430 million in annual free cash flow (4.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer