TipRanks
Go Ultimate55% OFF

Volvo AB (VOLV.B) AI Stock Analysis

SE:VOLV.B

Volvo AB

(Nasdaq OMX AB:VOLV.B)

Select Model
Rating:60Neutral
Price Target:SEK 323.00â–²(4.19% Upside)
Action:reiterated
Date:10/24/26

The score is anchored by solid profitability and returns, but tempered by moderate-to-high leverage and only moderate cash conversion. Technical indicators are notably weak (below key moving averages with negative MACD and low RSI), while valuation is supportive thanks to a reasonable P/E and a strong dividend yield.

Positive Factors
Resilient ProfitabilityVolvo generates solid profitability for an industrial manufacturer, with healthy EBIT and net margins alongside strong returns on equity. This earnings base indicates pricing, mix, or operational resilience and provides resources to support investment, customer support, and shareholder returns.
Negative Factors
Elevated LeverageLeverage has increased for a cyclical machinery business, raising the sensitivity of financial flexibility to weaker demand or tighter financing conditions. Higher debt relative to equity can also constrain capital allocation and leave less capacity to absorb prolonged industry softness.

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

-10%0%10%20%30%40%50%60%SE:VOLV.B+25.19%EWD+13.33%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
SEK 630.55B
Dividend Yield
4.23%
Average Volume (3M)
3.02M
Price to Earnings (P/E)
16.2
Beta (1Y)
1.34
Revenue Growth
-2.72%
EPS Growth
9.79%
Country
Sweden
Employees
89,417
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

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, Mack,...

How the Company Makes Money

Volvo AB primarily makes money by selling commercial vehicles and equipment and by generating recurring aftermarket and services revenue across its installed base. Key revenue streams include: (1) Sales of trucks (heavy-, medium-, and light-duty, dep...

Volvo AB Financial Statement Overview

Summary

Profitability is solid for an industrial manufacturer (TTM EBIT margin ~10.8%, net margin ~7.6%) with improving gross margin (~25.3% TTM vs ~24.4% in 2025) and strong ROE (~20%). Offsetting this are moderately elevated leverage (TTM debt-to-equity ~1.47) and only moderate cash conversion (FCF ~52% of net income; operating cash flow relative to debt ~0.18), plus uneven revenue/cash-flow history despite a TTM revenue rebound.

Income Statement

78Positive

Balance Sheet

64Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue480.37B479.18B526.82B552.25B473.48B372.22B
Gross Profit123.58B116.87B144.05B149.84B111.74B89.75B
EBITDA77.80B72.70B90.23B89.64B67.01B63.08B
Net Income39.07B34.46B50.39B49.83B32.72B32.79B
Balance Sheet
Total Assets706.35B648.59B714.56B674.07B629.06B515.86B
Cash, Cash Equivalents and Short-Term Investments54.65B73.50B73.49B73.61B67.18B50.79B
Total Debt269.65B248.06B258.85B233.52B205.05B151.45B
Total Liabilities514.92B470.11B517.20B493.33B462.83B371.74B
Stockholders Equity191.31B178.40B194.05B177.79B162.72B141.04B
Cash Flow
Free Cash Flow29.92B27.25B28.06B8.28B7.40B11.81B
Operating Cash Flow51.47B45.59B46.44B21.40B33.24B33.65B
Investing Cash Flow-34.07B-27.48B-24.14B-21.57B-21.49B-1.49B
Financing Cash Flow-21.12B-25.39B-21.87B1.82B7.48B-57.55B

Volvo AB Technical Analysis

Technical Analysis SentimentNegative
Last Price310.00

Price Trends

50DMA327.94Negative
100DMA334.35Negative
200DMA325.56Negative

Market Momentum

MACD-4.55Negative
RSI38.75Neutral
STOCH42.90Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VOLV.B, the sentiment is Negative. The current price of 310.00 is below the 20-day moving average (MA) of 314.86, below the 50-day MA of 327.94, and below the 200-day MA of 325.56, indicating a bearish trend. The MACD of -4.55 indicates Negative momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:VOLV.B.

Volvo AB Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

SE:VOLV.B against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
SE:ATCO.BSE:ATCO.B73OutperformSEK 858.54B32.4324.21%1.87%2.72%0.11%
SE:TREL.BSE:TREL.B69NeutralSEK 98.87B25.2910.57%1.77%1.86%11.09%
SE:ALFASE:ALFA67NeutralSEK 225.51B27.7117.58%1.65%4.27%-2.41%
SE:SANDSE:SAND65NeutralSEK 450.20B23.6018.92%1.67%14.34%29.04%
SE:EPI.ASE:EPI.A64NeutralSEK 276.72B31.14―1.59%1.20%7.88%
SE:VOLV.BSE:VOLV.B60NeutralSEK 630.55B16.1621.20%4.23%-2.72%9.79%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%SE:VOLV.BSE:ALFASE:ATCO.BSE:SANDSE:TREL.BSE:EPI.ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
SE:VOLV.B and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
SE:VOLV.BVolvo AB (UK)310.0061.8924.95%
SE:ALFAAlfa Laval AB545.60106.8324.35%
SE:ATCO.BAtlas Copco AB (0R82)160.4023.5217.18%
SE:SANDSandvik AB (UK)358.9077.9627.75%
SE:TREL.BTrelleborg AB451.2065.7317.05%
SE:EPI.AEpiroc AB239.5044.8423.04%
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