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Volvo AB
(VOLV.B)
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Rating:69Neutral
Price Target:
kr371.00
▲(5.73% Upside)
Action:Reiterated
Date:07/18/26
The score is primarily driven by solid profitability and returns, tempered by meaningful leverage and uneven/free-cash-flow step-down. Technically the stock has supportive upward momentum (price above key moving averages with positive MACD). Valuation is reasonable but not cheap at ~21x earnings, with the ~3.9% dividend yield providing some offset.
Positive Factors
Strong profitability & ROE
Consistent TTM margins and an ROE near 19% indicate durable pricing power and efficient capital use in a capital‑intensive industry. This level of profitability supports long‑term reinvestment into product development, electrification and aftermarket capabilities, helping sustain returns across cycles.
Negative Factors
Meaningful leverage
Net debt around 1.35x equity increases sensitivity to demand downturns and rising funding costs for a cyclical industrial. Higher leverage reduces financial flexibility for opportunistic investment, raises interest‑expense risk and constrains capital allocation during weaker cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability & ROE
Consistent TTM margins and an ROE near 19% indicate durable pricing power and efficient capital use in a capital‑intensive industry. This level of profitability supports long‑term reinvestment into product development, electrification and aftermarket capabilities, helping sustain returns across cycles.
Read all positive factors
Volvo AB (VOLV.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr708.70B
Dividend Yield3.76%
Average Volume (3M)2.93M
Price to Earnings (P/E)19.8
Beta (1Y)1.35
Revenue Growth-5.71%
EPS Growth-5.84%
CountrySE
Employees89,417
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)17.63
Shares Outstanding1,592,708,900
10 Day Avg. Volume2,797,711
30 Day Avg. Volume2,931,417
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)3.37
Price to Sales (P/S)1.26
P/FCF Ratio22.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr353.36Price Target Upside0.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)21.54
Revenue Forecast (FY)kr500.08B
Volvo AB Business Overview & Revenue Model
Company Description
The Volvo Group provides transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, and financial services. The company's brands include Volvo, Renault Trucks, Ma...
How the Company Makes Money
Volvo AB primarily makes money by selling capital goods and by generating recurring revenue from services tied to its installed base. Key revenue streams include: (1) Sales of vehicles and equipment: revenue from selling heavy-duty and medium-duty...
Volvo AB Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 471.53B | 479.18B | 526.82B | 552.76B | 473.48B | 372.22B |
| Gross Profit | 119.49B | 116.67B | 144.05B | 149.32B | 107.80B | 89.75B |
| EBITDA | 74.67B | 66.46B | 91.35B | 88.81B | 67.01B | 63.13B |
| 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 | 247.00B | 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 | 23.29B | 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 | -34.66B | -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
350.90
Price Trends
346.05
Positive
332.98
Positive
316.72
Positive
Market Momentum
-0.34
Positive
52.21
Neutral
50.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VOLV.B, the sentiment is Positive. The current price of 350.9 is above the 20-day moving average (MA) of 345.11, above the 50-day MA of 346.05, and above the 200-day MA of 316.72, indicating a bullish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 50.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:VOLV.B.
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% | 1.65% | -1.80% | -5.25% | |
73 Outperform | kr98.92B | 26.79 | 10.20% | 1.78% | 0.11% | 7.71% | |
72 Outperform | kr229.73B | 28.03 | 18.42% | 1.61% | 3.87% | 2.11% | |
71 Outperform | kr300.76B | 35.88 | ― | 1.44% | -1.94% | -1.63% | |
69 Neutral | kr708.70B | 19.77 | 19.98% | 3.76% | -5.71% | -5.84% | |
63 Neutral | kr489.34B | 29.05 | 17.52% | 1.53% | 6.31% | 16.31% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SE:VOLV.B
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32.51%
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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.