Autoliv (ALV) has a market cap of $9.5 billion. It fell by 0.07% and closed at $106.91 per share on August 15, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.34%, -2.7%, and -13.4%, respectively, on the same day.
Notably, ALV is now trading 0.25% below its 20-day moving average, 4.6% below its 50-day moving average, and 7.1% below its 200-day moving average.
Related ETF and peers
The iShares Dow Jones US ETF (IYY) invests 0.05% of its holdings in Autoliv and tracks a broad, cap-weighted index of US companies, covering 95% of the US market. The YTD price movement of IYY was 8.5% on August 15.
The market caps of Autoliv’s competitors are as follows:
Autoliv declared a dividend
Autoliv has declared a quarterly dividend of $0.58 per share on its common stock. The dividend will be paid on December 1, 2016, to shareholders of record at the close of business on November 16, 2016.
Performance of Autoliv in 2Q16
For 2Q16, Autoliv reported net sales of $2.6 billion, which is a rise of 13% over the $2.3 billion in 2Q15. Sales of airbag products, seatbelt products, passive safety electronic products, and active safety products rose by 4.0%, 2.7%, 13.6%, and 40.7%, respectively, between 2Q15 and 2Q16. The company reported brake control systems sales totaling $133.4 million in 2Q16.
The company’s cost of sales as a percentage of net sales and operating income rose by 3.2% and 1.9%, respectively, between 2Q15 and 2Q16.
Net income and EPS
Autoliv’s net income and EPS (earnings per share) rose to $148.4 million and $1.68, respectively, in 2Q16, as compared to $136.7 million and $1.55, respectively, in 2Q15. It reported adjusted EPS of $1.75 in 2Q16, which is a rise of 8.0% over 2Q15.
The company’s cash and cash equivalents fell by 16.5%, and its inventories rose by 5.5% between 4Q15 and 2Q16. Its current ratio and long-term debt-to-equity ratio fell to 1.7x and 0.46x, respectively, in 2Q16, as compared with 1.8x and 0.53x, respectively, in 4Q15.
The company has made the following projections for fiscal 2016:
- organic sales growth of ~6%
- sales growth from merger and acquisition activities (ANBS and MACOM) of ~6%.
- adjusted operating margin of 7.5%, which excludes costs for capacity alignments and antitrust-related matters
The company has made the following projections for fiscal 3Q16:
- organic sales growth of ~7%
- sales growth from merger and acquisition activities (ANBS and MACOM) of ~5%
- adjusted operating margin of more than 8.5%, which excludes costs for capacity alignments and antitrust-related matters and includes integration and purchase accounting related costs for the joint venture with Nissin Kogyo (ANBS) of $20 million–$30 million
- tax rate of ~29%, which excludes any discrete items
- operational cash flow of ~0.8 billion
In the next part of this series, we’ll discuss Procter & Gamble.