1.13%
16.64%
12.86%
14.72%
25.80%
50.44%
91.15%
AI Spotlight on VOLV
Company Description
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania.The company offers trucks for long-haulage, construction, mining, and distribution purposes under the Volvo, UD Trucks, Renault Trucks, Mack, Eicher, Arquus, cellcentric, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis, as well as associated transport systems under the Prevost and Nova Bus brands.It also provides construction equipment, including excavators, articulated and rigid haulers, wheel loaders, road construction machines, pavers, and compactors under the brand names of Volvo, and SDLG Trucks.
In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-road applications under the Volvo Penta brand name.Further, it provides financing, insurance, rental, spare parts, repair, preventive maintenance, service agreement, and assistance services.The company offers its products and services through a network of dealerships and workshops.
It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop battery packs for its trucks; and an agreement with NVIDIA and Aurora to develop autonomous trucks.AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
Market Data
| Last Price | 313.3 |
| Change Percentage | 1.13% |
| Open | 311 |
| Previous Close | 309.8 |
| Market Cap ( Millions) | 631214 |
| Volume | 4520174 |
| Year High | 321.1 |
| Year Low | 243.7 |
| M A 50 | 278.34 |
| M A 200 | 273.01 |
Financial Ratios
| FCF Yield | 4.47% |
| Dividend Yield | 5.75% |
| ROE | 28.52% |
| Debt / Equity | 135.85% |
| Net Debt / EBIDTA | 193.74% |
| Price To Book | 3.28 |
| Price Earnings Ratio | 12.64 |
| Price To FCF | 22.35 |
| Price To sales | 1.19 |
| EV / EBITDA | 8.75 |
News
- Jan -29 - Renault and Volvo electric van unit wins new orders
- Jan -29 - Truckmaker Volvo's profit falls more than expected but orders jump
- Jan -29 - Strong orders boost truckmaker Volvo's shares despite profit miss
- Jan -24 - Volvo forecasts U.S. sales bump of up to 10% in 2025
- Jan -22 - Volvo Buses to test new self-driving bus technology in Sweden
- Jan -22 - Volvo retailers seek vision on hybrid road map as EV sales sputter
- Jan -22 - Volvo EX30 experience provides key building blocks for EV transition
- Jan -21 - New Strong Sell Stocks for January 21st
- Jan -16 - Polestar 7 production confirmed for Europe
- Jan -09 - Morgan Stanley outlook positive on truck OEMs for 2025
- Jan -09 - Volvo rides EV surge to record global sales
- Jan -08 - Volvo CEO says plan for Mexico truck factory on track despite US tariff threat
- Jan -08 - Volvo Group sees delay in battery plant production from planned Swedish facility
- Jan -08 - Volvo Cars’ global sales up 8% in 2024
- Jan -08 - Tesla, Volvo poised to gain as CO2 emissions alliances rapidly form to avoid EU fines
- Jan -07 - Volvo Cars posts 3% dip in December sales despite strong electric car demand
- Jan -07 - Volvo Cars December sales down 3% while electric vehicles rise
- Dec -16 - Volvo, Daimler ink deal to develop SDV platform
- Dec -13 - Proterra’s surviving businesses may shed bankruptcy stigma
- Dec -11 - Volvo Begins Autonomous Operations for DHL Supply Chain in Texas
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Trucks
Expected Growth : 1.2 %
What the company do ?
Trucks from AB Volvo (publ) refers to a range of commercial vehicles, including heavy-duty, medium-duty, and light-duty trucks, manufactured by the Swedish company Volvo.
Why we expect these perspectives ?
The 1.2% growth in AB Volvo's truck segment is driven by increasing demand for heavy-duty trucks in the construction and mining industries, supported by government infrastructure investments. Additionally, the adoption of alternative fuels and electrification, as well as the company's focus on digitalization and autonomous driving, contribute to the growth.
Segment n°2 -> Construction Equipment
Expected Growth : 0.8 %
What the company do ?
Construction Equipment from AB Volvo (publ) refers to a range of heavy machinery and vehicles designed for construction, mining, and infrastructure development, including excavators, wheel loaders, and articulated haulers.
Why we expect these perspectives ?
The 0.8 growth rate of Construction Equipment from AB Volvo (publ) is driven by increasing infrastructure investments, rising demand for energy-efficient and environmentally friendly equipment, and a growing need for advanced technology and digitalization in the construction industry, offset by moderate economic growth and intense competition in the market.
Segment n°3 -> Financial Services
Expected Growth : 1.5 %
What the company do ?
Financial Services from AB Volvo (publ) provides financing solutions for customers and dealers, supporting the sale of Volvo Group products and services.
Why we expect these perspectives ?
AB Volvo's 1.5% growth in Financial Services is driven by increasing demand for financing solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization and process efficiency has improved customer experience, leading to higher sales volumes and revenue growth.
Segment n°4 -> Buses
Expected Growth : 0.9 %
What the company do ?
AB Volvo's bus division manufactures and sells buses, coaches, and chassis worldwide, offering a range of city buses, intercity buses, and coaches for public transport and tourism.
Why we expect these perspectives ?
The 0.9% growth in buses from AB Volvo (publ) is driven by increasing demand for sustainable transportation, government incentives for eco-friendly vehicles, and rising urbanization. Additionally, Volvo's focus on electric and hybrid buses, as well as its strong brand reputation, contribute to the segment's growth.
Segment n°5 -> Volvo Penta
Expected Growth : 1.1 %
What the company do ?
Volvo Penta is a global leader in marine propulsion systems, providing engines, drives, and propellers for boats and watercraft, a subsidiary of AB Volvo (publ).
Why we expect these perspectives ?
Volvo Penta's 1.1% growth driven by increasing demand for sustainable marine propulsion systems, expansion in emerging markets, and continued investment in research and development to improve engine efficiency and reduce emissions.
Segment n°6 -> Group Functions and Other including Eliminations
Expected Growth : 0.7 %
What the company do ?
Group Functions and Other including Eliminations from AB Volvo (publ) refers to the consolidation of financial data from various Volvo Group companies, eliminating internal transactions and presenting a unified financial picture.
Why we expect these perspectives ?
The 0.7% growth in Group Functions and Other including Eliminations is driven by increased investments in research and development, strategic acquisitions, and cost savings initiatives. Additionally, the segment benefits from Volvo's diversified business model, which mitigates risks and provides a stable source of income.
Ab Volvo (Publ) Products
| Product Range | What is it ? |
|---|---|
| Trucks | Volvo Trucks provides a range of commercial vehicles, including heavy-duty trucks, medium-duty trucks, and light-duty trucks, designed for various applications such as long-haul transportation, construction, and distribution. |
| Buses | Volvo Buses offers a range of city buses, coach buses, and tourist buses, designed for public transportation, commuter services, and tourism. |
| Construction Equipment | Volvo Construction Equipment provides a range of heavy machinery, including excavators, wheel loaders, and articulated haulers, designed for construction, mining, and quarrying applications. |
| Marine Engines | Volvo Penta provides a range of marine engines and propulsion systems, designed for leisure boats, commercial vessels, and industrial applications. |
| Industrial Engines | Volvo Penta provides a range of industrial engines, designed for power generation, pumping, and compressor applications. |
| Financial Services | Volvo Financial Services provides financial solutions, including financing, leasing, and insurance, designed for customers and dealers. |
AB Volvo (publ)'s Porter Forces
Threat Of Substitutes
The threat of substitutes for AB Volvo (publ) is medium due to the presence of alternative modes of transportation and logistics services. However, the company's strong brand reputation and diversified product offerings mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers for AB Volvo (publ) is low due to the company's strong market position and the lack of significant buyer concentration in the industry.
Bargaining Power Of Suppliers
The bargaining power of suppliers for AB Volvo (publ) is medium due to the presence of a few large suppliers in the industry. However, the company's strong relationships with its suppliers and its diversified supply chain mitigate this threat to some extent.
Threat Of New Entrants
The threat of new entrants for AB Volvo (publ) is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
The intensity of rivalry for AB Volvo (publ) is high due to the presence of several established competitors in the industry, including Daimler, Volkswagen, and Scania. The company's strong market position and diversified product offerings help to mitigate this threat to some extent.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 57.18% |
| Debt Cost | 3.95% |
| Equity Weight | 42.82% |
| Equity Cost | 9.24% |
| WACC | 6.21% |
| Leverage | 133.54% |
AB Volvo (publ) : Quality Control
AB Volvo (publ) passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| DG.PA | VINCI SA, together with its subsidiaries, operates in the concessions, energy, and construction segments primarily in France. It Concessions segment operates motorway concessions with a network of 4,419 kilometers in … |
| PCAR | PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, … |
| EPI-B.ST | Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in Sweden. It operates through Equipment & Service and Tools & Attachments … |
| DTG.DE | Daimler Truck Holding AG manufactures and sells medium- and heavy-duty trucks and buses in Europe, North America, Asia, Latin America, and internationally. It operates through five segments: Mercedes-Benz, Trucks North … |
| BA.L | BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
PACCAR
A-Score
1-Year Total Return ->
🥈
Vinci
A-Score
1-Year Total Return ->
🥉
Volvo
A-Score
1-Year Total Return ->
4
BAE Systems
A-Score
1-Year Total Return ->
5
Daimler Truck
A-Score
1-Year Total Return ->
6
