Volvo Car AB (publ.)
Volvo Car AB (publ.) Fundamental Analysis
Volvo Car AB (publ.) (VLVCY) shows weak financial fundamentals with a PE ratio of 742.12, profit margin of 0.03%, and ROE of 0.07%. The company generates $358.5B in annual revenue with weak year-over-year growth of 0.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VLVCY's fundamental strength across five key dimensions:
Efficiency Score
WeakVLVCY struggles to generate sufficient returns from assets.
Valuation Score
ModerateVLVCY shows balanced valuation metrics.
Growth Score
ModerateVLVCY shows steady but slowing expansion.
Financial Health Score
ExcellentVLVCY maintains a strong and stable balance sheet.
Profitability Score
WeakVLVCY struggles to sustain strong margins.
Key Financial Metrics
Is VLVCY Expensive or Cheap?
P/E Ratio
VLVCY trades at 742.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VLVCY's PEG of -0.88 indicates potential undervaluation.
Price to Book
The market values Volvo Car AB (publ.) at 0.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.85 times EBITDA. This is generally considered low.
How Well Does VLVCY Make Money?
Net Profit Margin
For every $100 in sales, Volvo Car AB (publ.) keeps $0.03 as profit after all expenses.
Operating Margin
Core operations generate 0.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.07 in profit for every $100 of shareholder equity.
ROA
Volvo Car AB (publ.) generates $0.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Volvo Car AB (publ.) generates limited operating cash flow of $34.24B, signaling weaker underlying cash strength.
Free Cash Flow
Volvo Car AB (publ.) generates weak or negative free cash flow of $1.82B, restricting financial flexibility.
FCF Per Share
Each share generates $1.22 in free cash annually.
FCF Yield
VLVCY converts 2.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
742.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.001
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.001
vs 25 benchmark
How VLVCY Stacks Against Its Sector Peers
| Metric | VLVCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 742.12 | 24.97 | Worse (Expensive) |
| ROE | 0.07% | 1167.00% | Weak |
| Net Margin | 0.03% | 673.00% | Weak |
| Debt/Equity | 0.25 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 1.04 | 4.01 | Neutral |
| ROA | 0.03% | -8477.00% (disorted) | Weak |
VLVCY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Volvo Car AB (publ.)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.22%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
61.71%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
47.54%
Industry Style: Cyclical, Growth, Discretionary
High Growth