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Volvo AB
(VOLV.A)
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Rating:68Neutral
Price Target:
kr370.00
▲(8.89% Upside)
Action:Reiterated
Date:07/18/26
The score is driven primarily by solid underlying profitability and healthy ROE, tempered by meaningful leverage and uneven/free-cash-flow conversion. Technicals add support given an uptrend across key moving averages and positive MACD/RSI. Valuation is neutral-to-slightly limiting with a ~21 P/E and a moderate ~2.5% dividend yield.
Positive Factors
Strong margins & ROE
Volvo's mid-20% gross margin and double-digit operating margin, with ROE roughly 18.7%, indicate durable manufacturing economics and efficient capital use. These metrics support reinvestment, R&D and returns to shareholders, helping sustain competitive positioning over multiple cycles.
Negative Factors
Elevated leverage
Debt-to-equity near 1.35x is meaningfully elevated for a cyclical industrial. Higher leverage reduces financial flexibility, raises interest expense sensitivity, and constrains capital allocation during downturns, limiting ability to absorb multi-quarter demand shocks without cutting investment or payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins & ROE
Volvo's mid-20% gross margin and double-digit operating margin, with ROE roughly 18.7%, indicate durable manufacturing economics and efficient capital use. These metrics support reinvestment, R&D and returns to shareholders, helping sustain competitive positioning over multiple cycles.
Read all positive factors
Volvo AB (VOLV.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr708.70B
Dividend Yield2.44%
Average Volume (3M)78.30K
Price to Earnings (P/E)19.8
Beta (1Y)1.37
Revenue Growth-5.71%
EPS Growth-5.84%
CountrySE
Employees98,844
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)17.63
Shares Outstanding440,743,100
10 Day Avg. Volume80,192
30 Day Avg. Volume78,299
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)3.38
Price to Sales (P/S)1.26
P/FCF Ratio22.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)21.49
Revenue Forecast (FY)kr499.69B
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 Indus...
How the Company Makes Money
Volvo AB primarily makes money by selling vehicles and equipment and by providing high-margin aftermarket and service offerings over the lifecycle of those products. Key revenue streams include: (1) Sales of commercial vehicles and equipment: reve...
Volvo AB Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 471.53B | 479.18B | 526.82B | 552.25B | 473.48B | 372.22B |
| Gross Profit | 119.49B | 116.87B | 144.05B | 149.84B | 111.74B | 89.75B |
| EBITDA | 74.26B | 72.70B | 91.35B | 89.64B | 67.01B | 63.08B |
| Net Income | 35.84B | 34.46B | 50.39B | 49.83B | 32.72B | 32.79B |
Balance Sheet | ||||||
| Total Assets | 678.69B | 648.59B | 714.56B | 674.07B | 629.06B | 515.86B |
| Cash, Cash Equivalents and Short-Term Investments | 47.07B | 73.50B | 73.49B | 73.61B | 67.18B | 50.79B |
| Total Debt | 260.36B | 248.06B | 258.85B | 233.52B | 205.05B | 151.45B |
| Total Liabilities | 502.00B | 470.11B | 517.20B | 493.33B | 462.83B | 371.74B |
| Stockholders Equity | 176.57B | 178.40B | 194.05B | 177.79B | 162.72B | 141.04B |
Cash Flow | ||||||
| Free Cash Flow | 25.86B | 27.25B | 28.06B | 8.28B | 7.40B | 11.81B |
| Operating Cash Flow | 49.84B | 45.59B | 46.44B | 21.40B | 33.24B | 33.65B |
| Investing Cash Flow | -34.67B | -27.48B | -24.14B | -21.57B | -21.49B | -1.49B |
| Financing Cash Flow | -38.96B | -25.39B | -21.87B | 1.82B | 7.48B | -57.55B |
Volvo AB Technical Analysis
Positive
339.80
Price Trends
346.12
Positive
333.07
Positive
316.76
Positive
Market Momentum
-0.31
Positive
52.06
Neutral
50.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VOLV.A, the sentiment is Positive. The current price of 339.8 is below the 20-day moving average (MA) of 345.17, below the 50-day MA of 346.12, and above the 200-day MA of 316.76, indicating a bullish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 50.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:VOLV.A.
Volvo AB Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | kr942.01B | 36.96 | 23.93% | 2.80% | -1.80% | -5.25% | |
73 Outperform | kr98.92B | 26.79 | 10.20% | 1.77% | 0.11% | 7.71% | |
72 Outperform | kr229.73B | 28.03 | 18.42% | 1.62% | 3.87% | 2.11% | |
71 Outperform | kr300.76B | 35.88 | ― | 1.45% | -1.94% | -1.63% | |
68 Neutral | kr708.70B | 19.77 | 19.98% | 2.44% | -5.71% | -5.84% | |
63 Neutral | kr489.34B | 29.05 | 17.52% | 1.54% | 6.31% | 16.31% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SE:VOLV.A
Volvo AB
348.60
85.52
32.50%
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Volvo AB Corporate Events
Volvo Group Lifts Profitability on Strong Q2 2026 Sales
Jul 17, 2026
Volvo Group reported second-quarter 2026 net sales of SEK 126.3 billion, reflecting organic growth of 7% driven by 6% higher vehicle sales and 7% growth in service sales. The figures highlight resilient demand and strong fleet utilization across m...
Volvo Updates Share-Class Mix After Minor A-to-B Conversion
Jun 30, 2026
Volvo AB has adjusted its voting structure following the conversion of 151 Series A shares into 151 Series B shares, a process enabled by provisions introduced at the company’s 2011 Annual General Meeting. This technical share-class change r...
AB Volvo Adjusts Voting Rights After Conversion of Series A to Series B Shares
Apr 30, 2026
AB Volvo has adjusted its share capital structure following the conversion of 800,000 Series A shares into 800,000 Series B shares, an option available to Series A holders since its inclusion in the Articles of Association in 2011. As of 30 April ...
Volvo Group Q1 Profitability Holds as Orders Shift After Portfolio Changes
Apr 24, 2026
Volvo Group reported a 9% decline in first-quarter 2026 net sales to SEK 110.8 billion, though organic sales rose 2%, highlighting resilient underlying demand despite currency headwinds and portfolio changes. Adjusted operating income slipped to S...
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.