Volvo AB (VOLV.A) AI Stock Analysis

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Volvo AB

(Nasdaq OMX AB:VOLV.A)

Select Model

Rating:65Neutral

Price Target:SEK 331.00▲(6.64% Upside)

Action:reiterated

Date:10/24/26

The score is primarily supported by strong profitability and returns, but capped by rising leverage and variable cash conversion. Technicals are a meaningful drag due to a clear downtrend (price below key moving averages and negative MACD), while valuation is a modest positive with a reasonable P/E and a mid-level dividend yield.

Positive Factors

Resilient profitability and returnsStrong margins and approximately 20% return on equity indicate that Volvo converts its industrial scale and product portfolio into meaningful earnings. Consistent positive margins across the cycle provide a durable base for reinvestment, shareholder returns, and competitive resilience.

Negative Factors

Rising leverageHigher debt reliance reduces Volvo's financial flexibility and increases sensitivity to weaker demand or higher funding costs. Rising leverage can constrain future investment and capital allocation, while making an industrial downturn more consequential for earnings and balance-sheet resilience.

Volvo AB (VOLV.A) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 630.55B
Dividend Yield: 2.74%
Average Volume (3M): 116.27K
Price to Earnings (P/E): 16.2
Beta (1Y): 1.36
Revenue Growth: -2.72%
EPS Growth: 9.79%
Country: Sweden
Employees: 98,844
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Volvo AB Business Overview & Revenue Model

Company Description

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. The company operates through Industri...

How the Company Makes Money

Volvo AB makes money primarily by selling commercial vehicles and equipment and by monetizing the installed base of products through services over their life cycle. Its main revenue streams include: (1) Sales of heavy-duty trucks and related componen...

Volvo AB Financial Statement Overview

Summary

Overall fundamentals are solid with resilient profitability (TTM gross margin ~25.3%, operating margin ~10.8%, net margin ~7.6%) and strong returns (TTM ROE ~20%). Offsetting this, leverage has risen (TTM debt-to-equity ~1.47) and cash-flow quality is somewhat variable, with only moderate cash conversion (TTM FCF ~52% of net income) despite improving operating and free cash flow.

Income Statement

78Positive

Balance Sheet

70Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	480.37B	479.18B	526.82B	552.25B	473.48B	372.22B
Gross Profit	123.58B	116.87B	144.05B	149.84B	111.74B	89.75B
EBITDA	77.80B	72.70B	90.23B	89.64B	67.01B	63.08B
Net Income	39.07B	34.46B	50.39B	49.83B	32.72B	32.79B
Balance Sheet
Total Assets	706.35B	648.59B	714.56B	674.07B	629.06B	515.86B
Cash, Cash Equivalents and Short-Term Investments	54.65B	73.50B	73.49B	73.61B	67.18B	50.79B
Total Debt	269.65B	248.06B	258.85B	233.52B	205.05B	151.45B
Total Liabilities	514.92B	470.11B	517.20B	493.33B	462.83B	371.74B
Stockholders Equity	191.31B	178.40B	194.05B	177.79B	162.72B	141.04B
Cash Flow
Free Cash Flow	29.92B	27.25B	28.06B	8.28B	7.40B	11.81B
Operating Cash Flow	51.47B	45.59B	46.44B	21.40B	33.24B	33.65B
Investing Cash Flow	-34.07B	-27.48B	-24.14B	-21.57B	-21.49B	-1.49B
Financing Cash Flow	-21.12B	-25.39B	-21.87B	1.82B	7.48B	-57.55B

Volvo AB Technical Analysis

Technical Analysis SentimentNegative

Last Price310.40

Price Trends

50DMA328.38Negative

100DMA334.58Negative

200DMA325.67Negative

Market Momentum

MACD-4.41Negative

RSI38.68Neutral

STOCH45.09Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VOLV.A, the sentiment is Negative. The current price of 310.40 is below the 20-day moving average (MA) of 315.47, below the 50-day MA of 328.38, and below the 200-day MA of 325.67, indicating a bearish trend. The MACD of -4.41 indicates Negative momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:VOLV.A.

Volvo AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:VOLV.A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:ATCO.B	73Outperform	SEK 858.54B	32.43	24.21%	1.87%	2.72%	0.11%
SE:TREL.B	69Neutral	SEK 98.87B	25.29	10.57%	1.77%	1.86%	11.09%
SE:ALFA	67Neutral	SEK 225.51B	27.71	17.58%	1.65%	4.27%	-2.41%
SE:SAND	65Neutral	SEK 450.20B	23.60	18.92%	1.67%	14.34%	29.04%
SE:VOLV.A	65Neutral	SEK 630.55B	16.16	21.20%	2.74%	-2.72%	9.79%
SE:EPI.A	64Neutral	SEK 276.72B	31.14	―	1.59%	1.20%	7.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

SE:VOLV.A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:VOLV.A	Volvo AB (GB)	310.40	62.11	25.02%
SE:ALFA	Alfa Laval AB	545.60	106.83	24.35%
SE:ATCO.B	Atlas Copco AB (0R82)	160.40	23.52	17.18%
SE:SAND	Sandvik AB (UK)	358.90	77.96	27.75%
SE:TREL.B	Trelleborg AB	451.20	65.73	17.05%
SE:EPI.A	Epiroc AB	239.50	44.84	23.04%

Volvo AB Corporate Events

Volvo Group Boosts Q3 Earnings and Margins on Strong Truck Demand

Oct 23, 2026

Volvo Group reported solid growth in the third quarter of 2026, with net sales rising 8% year-on-year to SEK 119.5 billion and organic sales up 7%, supported by higher truck orders and deliveries. Adjusted operating income climbed to SEK 14.7 billion...

AB Volvo Adjusts Voting Structure Through Share Class Conversion

Aug 31, 2026

Volvo Group, a long-established Swedish manufacturer of trucks, buses, construction equipment and marine and industrial power solutions, combines these products with financing and productivity-enhancing services across nearly 180 markets. With headqu...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 24, 2026

Volvo AB AI Stock Analysis