Autoliv, Inc. (ALV) Buy or Sell Stock Guide

Last updated: Jun 03, '18

The analysis below may be helpful to you if you have any of the following questions about ALV stock:

  • Is ALV a buy or a sell?
  • Should I sell or hold ALV stock today?
  • Is ALV a good buy / a good investment?
  • What are ALV analyst opinions, recommendations, ratings?

Here are ALV stock buy reasons/signals:

1. Autoliv possesses a culture that enables regular and consistent innovation, commercializing technology that generates solid margins and returns on invested capital.

2. Increasing safety content per vehicle across global markets is a growth opportunity for which Autoliv is well positioned.

3. Rising U.S. and European NCAP safety standards will require auto manufacturers to use ADAS and active safety technology to achieve a five-star crash-test rating.

4. ALV quarterly revenue growth was 7.80%, higher than the industry and sector average revenue growth (7.64% and 4.90%, respectively).

5. ALV profitability is improving. The YoY profit margin change was 4.11pp.

6. ALV forward dividend yield is 1.74%, higher than the industry (0.72%) and sector (0.89%) forward dividend yields.

Here are ALV stock sell reasons/signals:

1. The auto-parts supply industry is highly competitive and customers expect annual, contractual price reductions.

2. The cyclical, capital-intense nature of the industry means that a modest volume decline could translate into a significant drop in profitability.

3. Raw material costs are volatile, adding a degree of uncertainty to margin.

4. ALV stock price ($150.54) is close to the 52-week high ($153.53). Perhaps now is a good time to sell?

5. ALV forward P/E ratio is 16.93, and it’s high compared to its industry peers’ P/E ratios.

6. ALV PEG ratio (P/E adjusted for growth) is 2.49, and it’s high compared to its industry peers’ PEG ratios.

7. ALV average analyst price target ($146.26) is below its current price ($150.54).

8. ALV short share of float is 6.66%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

9. ALV short interest (days to cover the shorts) ratio is 11.59. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ALV?

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