ScoreWhy is Volvo AB ?
1
High Management Efficiency with a high ROCE of 19.37%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 33.96
3
High Debt company with Weak Long Term Fundamental Strength
4
With a growth in Net Profit of 39.93%, the company declared Very Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at SEK 49,841 MM
- INTEREST COVERAGE RATIO(Q) Highest at 5,235.35
- RAW MATERIAL COST(Y) Fallen by -14.94% (YoY)
5
With ROE of 17.33%, it has a fair valuation with a 3.34 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 24.73%, its profits have fallen by -28.9%
6
Majority shareholders : FIIs
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Volvo AB should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Volvo AB for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Volvo AB
24.73%
87.04
26.05%
OMX Stockholm 30
27.7%
1.79
15.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.20%
EBIT Growth (5y)
10.15%
EBIT to Interest (avg)
36.05
Debt to EBITDA (avg)
2.16
Net Debt to Equity (avg)
0.81
Sales to Capital Employed (avg)
1.19
Tax Ratio
26.23%
Dividend Payout Ratio
50.16%
Pledged Shares
0
Institutional Holding
0.03%
ROCE (avg)
18.01%
ROE (avg)
22.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
3.34
EV to EBIT
16.61
EV to EBITDA
11.25
EV to Capital Employed
2.19
EV to Sales
1.76
PEG Ratio
NA
Dividend Yield
2.57%
ROCE (Latest)
13.18%
ROE (Latest)
17.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SEK 49,841 MM
INTEREST COVERAGE RATIO(Q)
Highest at 5,235.35
RAW MATERIAL COST(Y)
Fallen by -14.94% (YoY
NET SALES(Q)
Highest at SEK 126,273 MM
OPERATING PROFIT(Q)
Highest at SEK 21,622 MM
OPERATING PROFIT MARGIN(Q)
Highest at 17.12 %
PRE-TAX PROFIT(Q)
Highest at SEK 13,346 MM
NET PROFIT(Q)
Highest at SEK 10,370 MM
EPS(Q)
Highest at SEK 5.1
-1What is not working for the Company
CASH AND EQV(HY)
Lowest at SEK 119,641 MM
Here's what is working for Volvo AB
Interest Coverage Ratio
Highest at 5,235.35 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at SEK 49,841 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SEK MM)
Net Sales
Highest at SEK 126,273 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SEK MM)
Operating Profit
Highest at SEK 21,622 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (SEK MM)
Operating Profit Margin
Highest at 17.12 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at SEK 13,346 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (SEK MM)
Net Profit
Highest at SEK 10,370 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (SEK MM)
EPS
Highest at SEK 5.1
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (SEK)
Raw Material Cost
Fallen by -14.94% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Volvo AB
Cash and Eqv
Lowest at SEK 119,641 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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