Should you watch the ALV stock in March?

By - Raza Naqvi


  • Autoliv designs and produces passive safety systems.
  • As of the market close on Wednesday, March 1, the ALV share price was US$ 94.05 per share.
  • In Q4 2022, the net sales of Autoliv amounted to US$ 2,335 million.

There are various consumer cyclical stocks in the United States, one of which is Autoliv Inc. (NYSE: ALV). It is one of the largest automobile safety providers worldwide and operates in 27 nations.

Autoliv designs and produces passive safety systems and mobility safety solutions for the automotive sector. In October 2022, the company announced that a strategic cooperation deal had been reached to create cutting-edge safety technologies for upcoming vehicles between Geely Auto Group, a major global automaker, and Autoliv China, a division of Autoliv.

The company added that under this partnership, 16 technologies would be covered under the cooperation, which takes a systemic approach to car safety. The goal is to create products that will meet the need for safer vehicles in the future and save more lives.

As of the market close on Wednesday, March 1, the ALV share price was US$ 94.05 per share, surging by 1.58 per cent during the trading session.

Let's find out more about the ALV stock in this article.

Latest financials of Autoliv (NYSE: ALV)

In Q4 2022, the net sales of Autoliv amounted to US$ 2,335 million, representing an increase of 10 per cent year-over-year (YoY). Meanwhile, in 2022, the net sales were US$ 8,842 million compared to US$ 8,230 million in 2021.

The operating income of Autoliv was US$ 230 million, up 32 per cent YoY from US$ 174 million in Q4 2021. However, in the full fiscal year 2022, the operating income decreased to US$ 659 million from US$ 675 million in 2021.

In the fourth quarter of 2022, the company's earnings per share (EPS) stood at US$ 1.8, up 38 per cent YoY. Also, the operating cash flow jumped to US$ 462 million compared to US$ 317 million in Q4 2021.

What's the latest news on Autoliv?

In November 2022, the company said that several products are being developed to increase motorcycle safety. Airbags for protective apparel, a motorbike airbag, and the first motorcycle helmet in the world with an integrated airbag for improved head protection are among the proposals.

On February 14, 2023, Autoliv's Financing Committee of the Board of Directors approved the continuation of its €3,000,000,000 Guaranteed Euro Medium Term Note Program for an additional year.

Bottom line

In 2023, the company expects 15 per cent organic sales growth and about one per cent negative FX effect on net sales. Meanwhile, the adjusted operating margin is expected to be between 8.5 per cent to 9 per cent.

Autoliv expects its operating cash flow to be around US$ 900 million in 2023.