Skip to Content
Morningstar
Get 14 Days Free

Autoliv Inc ALV

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Autoliv Reports Disappointing Q2 Results, Reduces 2021 Outlook; Maintaining $93 FVE

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

Narrow-moat Autoliv, supplier of air bags, seat belts, and steering wheels to the global auto industry, reported second-quarter earnings per share before special items of $1.20. This missed the FactSet sell-side consensus estimate of $1.39 by $0.19 but was $2.60 above the COVID-19-affected loss per share of $1.40 reported last year. The microchip shortage, which caused sporadic customer production changes, and higher raw material costs both contributed to the underperformance. Revenue nearly doubled from the year-ago period, up $1.0 billion to $2.0 billion, due to pandemic-related industrywide shutdowns last year. Excluding the positive currency effect, organic revenue was up 85%, outperforming a 52% increase in global light-vehicle production by 33 percentage points on a strong launch schedule of new business.

Read Full Analysis

Company Profile

Business Description

Autoliv is the global leader in passive safety components and systems for the auto industry. Products include seat belts, frontal air bags, side-impact air bags, air bag inflators, and steering wheels. The Renault-Nissan-Mitsubishi alliance is the company's largest customer at 13% of 2020 revenue, with Volkswagen and Stellantis accounting for 11% each. At 31% of 2020 revenue, the Americas was Autoliv's largest geographic region, followed by Europe at 28%, China at 21%, and Japan at 10%.

Contact
Klarabergsviadukten 70, P.O. Box 70381, Section B7
Stockholm, SE-107 24, Sweden
T +46 858720600
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 64,500

Related

Our Picks
8 Sturdy Dividend Stocks
We think the payouts on these undervalued names are sustainable.
Susan Dziubinski
Stock Strategist Industry Reports
Moats, Motors, and Markets in 2020
Our analysts offer their annual global auto overview, forecast, and actionable ideas.
David Whiston
Premium Article
16 Overpriced Stocks With Eroding Moats
These narrow-moat stocks all have negative moat trends and are trading at 1- or 2-star levels.
Susan Dziubinski
Stock Strategist
Threats to Gentex Not as Close as They Appear
Costs and regulatory issues keep mirrors safe from replacement by cameras in the medium term, but Gentex should try to acquire camera maker Mobileye for its growth potential in active safety and to put Gentex’s cash hoard to work.
David Whiston
Stock Strategist Industry Reports
What Drives Auto Supplier Stocks?
We identify supplier traits that enable investor returns.
Richard Hilgert
Stock Strategist Industry Reports
The Road Ahead for Auto Suppliers
We expect optimism to improve in the auto sector as 2011 unfolds.
David Whiston
Stock Strategist Industry Reports
Automakers: Dead End, or Open Road Ahead?
The massive decline in auto sales last year suggests a large recovery is coming.
David Whiston
Stock Strategist Industry Reports
The Road Ahead for Auto Suppliers
Auto suppliers earnings will benefit from huge increases in production.
David Whiston
Stock Strategist Industry Reports
Detroit after the Bailout
Even with TARP loans, there are tons of issues in the U.S. auto industry.
David Whiston
Stock Strategist Industry Reports
The Current State of the U.S. Auto Industry
Not bailing out Detroit would be a disaster for the U.S. auto industry.
David Whiston

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.