ALVAutoliv, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 28% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ALV?
Autoliv, Inc. earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 10 points above what the capital costs: growth creates value
- Operating margin
- 9.2%
Operating margin · Auto Parts median 5.9% · 12 months to Q2 2026
- Cash conversion
- 1.58×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.1% |
| FY2021 | 8.2% |
| FY2022 | 7.4% |
| FY2023 | 6.6% |
| FY2024 | 9.4% |
| FY2025 | 10% |
Details›
- Gross margin12 months to Q2 2026
- 19%
- Operating margin12 months to Q2 2026
- 9.2%
- Net margin12 months to Q2 2026
- 5.8%
- Free cash flow margin
- 6.8%
- R&D as % of revenue
- 4.1%
- Revenue, trailing twelve months
- $11.1B
- Free cash flow, trailing twelve months
- $757M
- Net income, trailing twelve months
- $642M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.