Autoliv (ALV) has a market cap of $8.5 billion. It fell 1.1% to close at $96.32 per share on October 28, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.1%, -7.5%, and -21.6%, respectively, on the same day. ALV is trading 5.9% below its 20-day moving average, 7.9% below its 50-day moving average, and 12.5% below its 200-day moving average.
Related ETF and peers
The iShares Dow Jones US ETF (IYY) invests 0.04% of its holdings in Autoliv. The ETF tracks a broad, cap-weighted index of US companies covering 95% of the US market. The YTD price movement of IYY was 5.5% on October 28. The market caps of Autoliv’s competitors are as follows:
On October 28, 2016, Robert W. Baird downgraded Autoliv’s rating to “neutral” from “outperform.” It also reduced the stock’s price target to $104 from $129 per share.
Performance of Autoliv in 3Q16
Autoliv reported 3Q16 net sales of $2.5 billion, a rise of 13.6% compared with $2.2 billion in 3Q15. Sales of airbag products, seatbelt products, passive safety electronic products, and active safety products rose 5.3%, 5.8%, 9.4%, and 11.6%, respectively, between 3Q15 and 3Q16. It reported brake control system sales of $138.5 million in 3Q16. The company’s gross profit margin narrowed by 490 basis points and its operating margin narrowed by 60 basis points.
Its net income and EPS (earnings per share) rose to $135.5 million and $1.56, respectively, in 3Q16, compared with $99.1 million and $1.12, respectively, in 3Q15. It reported adjusted EPS of $1.63 in 3Q16, a rise of 6.5% over 3Q15.
Autoliv’s cash and cash equivalents fell 11.3%, and its inventories rose 12.3% between 4Q15 and 3Q16. Its current ratio and long-term debt-to-equity ratio fell to 1.7x and 0.46x, respectively, in 3Q16, compared with 1.8x and 0.53x, respectively, in 4Q15.
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.
Autoliv has made the following projections for fiscal 4Q16:
- flat organic sales growth
- ~6% sales growth from mergers and acquisitions of
- adjusted operating margin of 9.0%, excluding costs for capacity alignments and antitrust-related matters
The company has made the following projections for fiscal 2016:
- organic sales growth of ~7%
- ~5% sales growth from mergers and acquisitions
- adjusted operating margin of more than 8.5%, excluding costs for capacity alignments and antitrust-related matters.
- tax rate of ~28%, excluding any discrete items.
- operational cash flow of more than ~$0.8 billion.
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