AUTOLIV INC
Autoliv's capital structure shows a debt-to-equity ratio of 0.79, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as high, but its current ratio of 1.08 is near the minimum comfort range, and net cash is negative after subtracting total debt. Free cash flow for Q1 2026 was -$161 million, reflecting capital expenditures of $85 million and negative operating cash flow of -$76 million [doc:10-Q_2026-04-01]. Profitability metrics show a return on equity of 5.35% and a return on assets of 1.67%, both below the industry median for automotive parts firms. Gross profit margin was 19.1%, and operating margin was 8.6%, which are in line with the industry but suggest limited room for margin expansion given the capital-intensive nature of the business [doc:10-Q_2026-04-01]. Geographically, Autoliv operates in five regions: Europe, the Americas, China, Japan, and the Rest of Asia. Revenue concentration is not explicitly disclosed, but the company's global footprint suggests exposure to regional economic and regulatory shifts. The Americas and China are likely key contributors, given the scale of automotive production in these regions [doc:10-Q_2026-04-01]. Growth trajectory for the current fiscal year is mixed. Revenue increased by 6.8% year-over-year to $2.75 billion in Q1 2026, but operating income declined by 6.7% to $237 million. Analysts project a mean price target of $131.91, with a median of $132.00, suggesting a cautious outlook amid macroeconomic and supply chain uncertainties [doc:10-Q_2026-04-01]. Risk factors include liquidity constraints, dilution potential, and exposure to global supply chain disruptions. The company has a medium dilution risk, with 75.1 million diluted shares outstanding and a 0.5% increase in shares from basic to diluted. The risk assessment also flags potential dilution from future offerings or ATM programs [doc:10-Q_2026-04-01]. Recent events include the formation of the Mobility Safety Solutions segment to expand product offerings, including pedestrian protection and connected safety services. The company also reported a gain on the sale of property in China in Q1 2025. Forward-looking statements in the 10-Q highlight risks such as inflation, supply chain disruptions, and geopolitical conflicts [doc:10-Q_2026-04-01].
Business. Autoliv, Inc. develops, manufactures, and supplies safety systems to the automotive industry, primarily passive safety systems such as airbag modules, seatbelts, and inflator technologies, with operations in Europe, the Americas, China, Japan, and the Rest of Asia [doc:10-Q_2026-04-01].
Classification. Autoliv is classified under the industry "Auto, Truck & Motorcycle Parts" within the business sector "Automobiles & Auto Parts" and economic sector "Consumer Cyclicals," with a confidence level of 0.92 [doc:verified_market_data].
- Autoliv's liquidity position is high, but its current ratio is near the minimum comfort range, and net cash is negative after subtracting total debt.
- Profitability metrics are in line with the industry but show limited margin expansion potential due to the capital-intensive nature of the business.
- The company's global footprint exposes it to regional economic and regulatory shifts, with the Americas and China likely being key contributors to revenue.
- Analysts project a cautious outlook, with a mean price target of $131.91 and a median of $132.00, reflecting macroeconomic and supply chain uncertainties.
- The company faces medium dilution risk, with a 0.5% increase in shares from basic to diluted, and potential future offerings or ATM programs.
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- Current ratio is close to the minimum comfort range.
- Net cash is negative after subtracting total debt.
- Source documents mention dilution or offering risk.