Volvo AB (VOLV B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alimak Group AB

Railcare Group AB

Lyckegård Group AB

Sandvik Aktiebolag

Seafire AB

Epiroc AB

Volvo AB

VBG Group AB

engcon AB

OXE Marine AB

Zoomability Int AB

Why is Volvo AB ?

High Debt company with Weak Long Term Fundamental Strength

Negative results in Jun 25

ROCE(HY) Lowest at 22.62%
INTEREST(Q) At SEK 483 MM has Grown at 18.09%
INTEREST COVERAGE RATIO(Q) Lowest at 3,411.59

With ROE of 23.43%, it has a expensive valuation with a 3.29 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 3.41%, its profits have fallen by -31.3%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Volvo AB for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Volvo AB

3.41%

59.52

30.59%

OMX Stockholm 30

8.01%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.32%

EBIT Growth (5y)

12.94%

EBIT to Interest (avg)

33.96

Debt to EBITDA (avg)

1.55

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

1.26

Tax Ratio

23.78%

Dividend Payout Ratio

32.28%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

19.37%

ROE (avg)

22.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.29

EV to EBIT

13.40

EV to EBITDA

9.39

EV to Capital Employed

2.04

EV to Sales

1.48

PEG Ratio

Dividend Yield

4.32%

ROCE (Latest)

15.20%

ROE (Latest)

23.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 42,725 MM

-26What is not working for the Company

ROCE(HY)

Lowest at 22.62%

INTEREST(Q)

At SEK 483 MM has Grown at 18.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,411.59

RAW MATERIAL COST(Y)

Grown by 21.88% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 124.43 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.76%

OPERATING PROFIT(Q)

Lowest at SEK 16,478 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.41 %

PRE-TAX PROFIT(Q)

Lowest at SEK 10,175 MM

NET PROFIT(Q)

Lowest at SEK 7,411 MM

EPS(Q)

Lowest at SEK 3.65

Here's what is working for Volvo AB

Operating Cash Flow

Highest at SEK 42,725 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Here's what is not working for Volvo AB

Pre-Tax Profit

At SEK 10,175 MM has Fallen at -51.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 7,411 MM has Fallen at -52.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Interest

At SEK 483 MM has Grown at 18.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest Coverage Ratio

Lowest at 3,411.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at SEK 16,478 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 13.41 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 10,175 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 7,411 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 3.65

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Debt-Equity Ratio

Highest at 124.43 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 2.76%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 21.88% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales