(VOLV-A) AB Volvo (publ) - ST
Sector: Industrials | Industry: Farm & Heavy Construction Machinery | Exchange: ST (Sweden) | Market Cap: 648.264m SEK | Total Return: 32.5% in 12m
Avg Turnover: 27.0M
EPS Trend: -59.2%
Rev. Trend: -83.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
AB Volvo (publ) is a Sweden-based manufacturer of heavy-duty vehicles and industrial power solutions. The company operates across multiple segments, including trucks, construction equipment, buses, and Volvo Penta engines. Its global brand portfolio includes Mack, Renault Trucks, and SDLG, serving the logistics, construction, and marine infrastructure sectors.
The business model integrates hardware sales with high-margin recurring revenue from financial services, maintenance agreements, and spare parts. This captive finance and service structure is a standard industry practice designed to stabilize cash flow against the cyclical demand inherent in the heavy machinery and commercial transportation markets.
The company maintains a multi-brand strategy to capture different regional market segments, utilizing a global dealer network for distribution and aftermarket support. As a major player in the Industrials sector, Volvos operations are closely tied to global trade volumes and infrastructure spending across Europe, North America, and Asia.
- Truck order intake levels signal cyclical demand shifts in North America and Europe
- Service revenue growth stabilizes margins against volatile vehicle delivery cycles
- Battery electric vehicle transition costs impact short-term industrial operating margins
- Infrastructure spending in key markets drives Construction Equipment segment profitability
| Net Income: 32.9b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.37 > 1.0 |
| NWC/Revenue: 11.20% < 20% (prev 16.43%; Δ -5.23% < -1%) |
| CFO/TA 0.07 > 3% & CFO 49.8b > Net Income 32.9b |
| Net Debt (193b) to EBITDA (70.7b): 2.73 < 3 |
| Current Ratio: 1.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.03b) vs 12m ago -0.02% < -2% |
| Gross Margin: 24.49% > 18% (prev 26.71%; Δ -2.21% > 0.5%) |
| Asset Turnover: 68.34% > 50% (prev 75.24%; Δ -6.91% > 0%) |
| Interest Coverage Ratio: 25.70 > 6 (EBIT TTM 47.1b / Interest Expense TTM 1.83b) |
| A: 0.08 (Total Current Assets 324b - Total Current Liabilities 271b) / Total Assets 682b |
| B: 0.26 (Retained Earnings 180b / Total Assets 682b) |
| C: 0.07 (EBIT TTM 47.1b / Avg Total Assets 685b) |
| D: 0.39 (Book Value of Equity 191b / Total Liabilities 492b) |
| Altman-Z'' = 2.23 = BBB |
| DSRI: 1.04 (Receivables 170b/181b, Revenue 468b/517b) |
| GMI: 1.09 (GM 26.71% / 24.49%) |
| AQI: 1.05 (AQ_t 0.33 / AQ_t-1 0.32) |
| SGI: 0.90 (Revenue 468b / 517b) |
| TATA: -0.02 (NI 32.9b - CFO 49.8b) / TA 682b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of June 26, 2026, the stock is trading at SEK 329.60 with a total of 139,065 shares traded. Over the past week, the price has changed by +3.58%, over one month by +2.11%, over three months by +12.91% and over the past year by +32.54%.
Current recommended Stop Loss: 320.40 (which is 2.8% or 1.3 ATR below the current price).
AB Volvo (publ) has no consensus analysts rating.
P/E Trailing = 19.7155
P/E Forward = 14.6413
P/S = 1.3847
P/B = 3.3872
P/EG = 1.3446
Revenue TTM = 468b SEK
EBIT TTM = 47.1b SEK
EBITDA TTM = 70.7b SEK
Long Term Debt = 152b SEK (from longTermDebt, last quarter)
Short Term Debt = 106b SEK (from shortTermDebt, last quarter)
Debt = 266b SEK (from shortLongTermDebtTotal, last quarter) + Leases 7.97b
Net Debt = 193b SEK (calculated: Debt 266b - CCE 72.6b)
Enterprise Value = 841b SEK (648b + Debt 266b - CCE 72.6b)
Interest Coverage Ratio = 25.70 (Ebit TTM 47.1b / Interest Expense TTM 1.83b)
EV/FCF = 32.41x (Enterprise Value 841b / FCF TTM 26.0b)
FCF Yield = 3.09% (FCF TTM 26.0b / Enterprise Value 841b)
FCF Margin = 5.54% (FCF TTM 26.0b / Revenue TTM 468b)
Net Margin = 7.02% (Net Income TTM 32.9b / Revenue TTM 468b)
Gross Margin = 24.49% ((Revenue TTM 468b - Cost of Revenue TTM 353b) / Revenue TTM)
Gross Margin QoQ = 25.93% (prev 24.90%)
Tobins Q-Ratio = 1.23 (Enterprise Value 841b / Total Assets 682b)
Interest Expense / Debt = 0.69% (Interest Expense 1.83b / Debt 266b)
Taxrate = 27.06% (12.3b / 45.3b)
NOPAT = 34.4b (EBIT 47.1b * (1 - 27.06%))
Current Ratio = 1.19 (Total Current Assets 324b / Total Current Liabilities 271b)
Debt / Equity = 1.39 (Debt 266b / totalStockholderEquity, last quarter 191b)
Debt / EBITDA = 2.73 (Net Debt 193b / EBITDA 70.7b)
Debt / FCF = 7.44 (Net Debt 193b / FCF TTM 26.0b)
Total Stockholder Equity = 176b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.80% (Net Income 32.9b / Total Assets 682b)
RoE = 18.66% (Net Income TTM 32.9b / Total Stockholder Equity 176b)
RoCE = 14.37% (EBIT 47.1b / Capital Employed (Equity 176b + L.T.Debt 152b))
RoIC = 6.97% (NOPAT 34.4b / Invested Capital 493b)
WACC = 6.27% (E(648b)/V(914b) * Re(8.63%) + D(266b)/V(914b) * Rd(0.69%) * (1-Tc(0.27)))
Discount Rate = 8.63% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -28.17 | Cagr: 0.0%
[DCF] Terminal Value 76.65% ; FCFF base≈25.0b ; Y1≈27.2b ; Y5≈33.7b
[DCF] Fair Price = 731.5 (EV 515b - Net Debt 193b = Equity 322b / Shares 440.7m; r=8.35% [WACC [floored]]; 5y FCF grow 9.85% → 2.50% )
EPS Correlation: -59.23 | EPS CAGR: -11.27% | SUE: N/A | # QB: 0
Revenue Correlation: -83.18 | Revenue CAGR: -5.07% | SUE: -0.28 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS next Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2026-12-31): EPS=0.00 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+0.0% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=0.00 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+0.0% | GrowthRev=+7.3%