(VOLV-B) AB Volvo (publ) - ST
Sector: Industrials | Industry: Farm & Heavy Construction Machinery | Exchange: ST (Sweden) | Market Cap: 647.858m SEK | Total Return: 32.5% in 12m
Avg Turnover: 1.05B
EPS Trend: -79.8%
Qual. Beats: 0
Rev. Trend: -83.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Shakeout
AB Volvo (publ) is a Sweden-based manufacturer of heavy-duty vehicles and industrial power solutions. The company operates through specialized segments including Trucks, Construction Equipment, Buses, and Volvo Penta. Its product portfolio encompasses heavy and light-duty trucks, road construction machinery, and marine engines sold under global brands such as Volvo, Mack, Renault Trucks, and SDLG.
The business model integrates hardware sales with high-margin recurring revenue streams, including financing, leasing, and maintenance services. This aftermarket focus is a standard industry strategy designed to stabilize cash flow during cyclical downturns in the construction and transportation sectors. AB Volvo utilizes a global dealer network to serve the infrastructure, logistics, and maritime industries across six continents.
- Heavy truck demand softens as European and North American freight volumes normalize
- Service revenue growth stabilizes margins despite cyclical equipment sales fluctuations
- Battery electric vehicle adoption and R&D spending impact long-term capital allocation
- Construction equipment segment profitability hinges on global infrastructure spending levels
| Net Income: 32.9b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.01 > 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 (71.2b): 2.71 < 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: 25.92 > 6 (EBIT TTM 47.5b / 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 47.5b / Avg Total Assets 685b) |
| D: 0.39 (Book Value of Equity 191b / Total Liabilities 492b) |
| Altman-Z'' = 2.24 = 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 329.10 with a total of 3,404,518 shares traded. Over the past week, the price has changed by +3.17%, over one month by +2.20%, over three months by +12.73% and over the past year by +32.54%.
Current recommended Stop Loss: 319.50 (which is 2.9% or 1.3 ATR below the current price).
AB Volvo (publ) has no consensus analysts rating.
P/E Trailing = 19.7153
P/E Forward = 14.6413
P/S = 1.3839
P/B = 3.3861
P/EG = 1.3442
Revenue TTM = 468b SEK
EBIT TTM = 47.5b SEK
EBITDA TTM = 71.2b 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 = 25.92 (Ebit TTM 47.5b / Interest Expense TTM 1.83b)
EV/FCF = 35.96x (Enterprise Value 841b / FCF TTM 23.4b)
FCF Yield = 2.78% (FCF TTM 23.4b / Enterprise Value 841b)
FCF Margin = 5.00% (FCF TTM 23.4b / 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 = 34.7b (EBIT 47.5b * (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 = 2.71 (Net Debt 193b / EBITDA 71.2b)
Debt / FCF = 8.25 (Net Debt 193b / FCF TTM 23.4b)
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 = 14.49% (EBIT 47.5b / Capital Employed (Equity 176b + L.T.Debt 152b))
RoIC = 7.03% (NOPAT 34.7b / Invested Capital 493b)
WACC = 6.25% (E(648b)/V(913b) * Re(8.61%) + D(266b)/V(913b) * Rd(0.69%) * (1-Tc(0.27)))
Discount Rate = 8.61% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -3.11 | Cagr: 0.0%
[DCF] Terminal Value 75.30% ; FCFF base≈23.5b ; Y1≈23.4b ; Y5≈24.3b
[DCF] Fair Price = 116.9 (EV 379b - Net Debt 193b = Equity 186b / Shares 1.59b; r=8.35% [WACC [floored]]; 5y FCF grow -1.04% → 2.50% )
EPS Correlation: -79.82 | EPS CAGR: -14.88% | SUE: -0.70 | # QB: 0
Revenue Correlation: -83.23 | Revenue CAGR: -5.09% | SUE: -0.26 | # QB: 0
EPS current Quarter (2026-06-30): EPS=5.36 | Chg30d=-1.25% | Revisions=+11% | Analysts=7
EPS next Quarter (2026-09-30): EPS=5.44 | Chg30d=+0.36% | Revisions=-33% | Analysts=6
EPS current Year (2026-12-31): EPS=21.52 | Chg30d=-0.02% | Revisions=+33% | GrowthEPS=+20.0% | GrowthRev=+2.2%
EPS next Year (2027-12-31): EPS=24.85 | Chg30d=-0.00% | Revisions=+0% | GrowthEPS=+15.5% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: -33%