Autoliv (ALV) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Autoliv ( ALV) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Autoliv as such a stock due to the following factors:

  • ALV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.8 million.
  • ALV has traded 1,603 shares today.
  • ALV is trading at a new lifetime high.

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More details on ALV:

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry worldwide. The company operates in two segments, Passive Safety and Active Safety segments. The stock currently has a dividend yield of 2%. ALV has a PE ratio of 23.7. Currently there are 2 analysts that rate Autoliv a buy, 3 analysts rate it a sell, and 5 rate it a hold.

The average volume for Autoliv has been 705,300 shares per day over the past 30 days. Autoliv has a market cap of $9.6 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.25 and a short float of 5.1% with 10.74 days to cover. Shares are up 16.4% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Autoliv as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • ALV's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ALV has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $212.40 million or 3.05% when compared to the same quarter last year. Despite an increase in cash flow, AUTOLIV INC's cash flow growth rate is still lower than the industry average growth rate of 22.27%.
  • AUTOLIV INC's earnings per share declined by 10.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AUTOLIV INC reported lower earnings of $5.06 versus $5.08 in the prior year. This year, the market expects an improvement in earnings ($5.76 versus $5.06).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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