Industry

Industrials

Sector

Machinery

Country

Sweden

Company description

The Volvo Group is one of the world's leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The company is headquartered in Gothenburg, Sweden, employs about 100,000 people, has production facilities in 19 countries and sells its products in more than 190 markets. Volvo Group was originally founded as a car manufacturer in 1927. Volvo Cars was sold in 1999 but the two companies still share the Volvo name and logo.

Market cap.

SEKm 310,274

Share price

SEK 153

Earnings per share (EPS)

SEK 10

Dividend per share (DPS)

SEK 4

Price / earnings

14.8x

Price / sales

0.9x

Price / book value

2.9x

Enterprise value / EBITDA

9.2x

CEO

Martin Lundstedt

Chairman of the Board of Directors

Carl-Henric Svanberg

CFO

Jan Ytterberg

Investor relations

Christer Johansson

Ticker symbol

VOLV

Stock exchange

Nasdaq Stockholm

ISIN code

SE0000115420

Phone

n.a.

Website

volvogroup.com

Address

Gropegaardsgatan 2, 417 15 Gothenburg

Income statements

SEKm 200620072008200920102011201220132014201520162017
Sales 258,835285,405303,667218,361264,749310,367303,647272,622282,948312,515301,914334,748
Other income 000000000000
Total income 258,835285,405303,667218,361264,749310,367303,647272,622282,948312,515301,914334,748
Total expenses -227,826-251,130-274,317-220,133-232,871-269,395-271,247-249,616-261,301-272,186-264,373-289,383
EBITDA 31,00934,27529,350-1,77231,87840,97232,40023,00621,64740,32937,54145,365
Depreciation tangible assets -8,741-9,755-10,238-11,638-10,487-10,745-11,564-12,367-12,396-13,548-13,507-13,135
Write-downs tangible assets 0000000000-116-199
EBITA 22,26824,52019,112-13,41021,39130,22720,83610,6399,25126,78123,91832,031
Amortisation intangible assets -1,930-2,719-3,286-3,589-3,305-3,247-3,191-3,597-3,473-3,320-3,360-3,246
Income from associated companies 6143025-14-86-81-239646-1432681,542
Earnings before interest and taxes (EBIT) 20,39922,23115,851-17,01318,00026,89917,6227,1385,82423,31820,82630,327
Financial income 6669521,171390442608510381328257240164
Financial expenses -585-1,122-1,935-3,559-3,142-2,875-2,476-2,810-1,994-2,366-1,847-1,852
Income from associated companies 000000000000
Earnings before taxes (EBT) 20,29921,55714,010-20,57415,51324,92915,3554,7205,08920,41719,23028,254
Taxes -3,981-6,529-3,9945,889-4,302-6,814-4,097-919-2,854-5,320-6,008-6,971
Profit from continuing operations 16,31815,02810,016-14,68511,21118,11511,2583,8012,23515,09713,22221,283
Discontinued operations 000000000000
Minorities -50-96-74-33-346-364-219-219-136-41-75-302
Net profit or loss 16,26814,9329,942-14,71810,86517,75111,0393,5822,09915,05613,14720,981

Cash flow statements

SEKm 200620072008200920102011201220132014201520162017
EBITDA 31,00934,27529,350-1,77231,87840,97232,40023,00621,64740,32937,54145,365
Net interest paid 152245-202-2,552-2,303-2,701-2,367-2,073-1,529-1,308-1,238-1,328
Taxes paid -4,388-5,970-5,076-1,604-2,590-4,513-5,366-2,823-3,304-3,110-4,219-4,758
Investments in working capital -7,668-9,993-23,30416,9154,801-15,085-21,940-10,765-14,103-9,149-13,893-4,704
Other operating cash items 2,397-16713,8698719971,0883,7456,026-904-6323,024
Cash flow from operations (CFFO) 21,50218,39076914,85632,65719,6703,81511,0908,73725,85817,55937,599
Capital expenditures (capex) -17,157-11,569-15,228-10,899-12,078-16,684-21,514-17,062-13,711-13,327-11,307-13,842
Acquisitions 0-15,013-1,317-8,866-106-1,709-1,186-14-4,808-1,98400
Disposals 8,1603,55410,8821497,4302,6657,0681,4427,4673,9604,1804,696
Other investing cash items 000000000000
Cash flow from investing activities -8,997-23,028-5,663-19,616-4,754-15,728-15,632-15,634-11,052-11,351-7,127-9,146
Free cash flow to equity holders (FCFE) 12,505-4,638-4,894-4,76027,9033,942-11,817-4,544-2,31514,50710,43228,453
Dividends paid -6,775-20,255-11,150-4,0550-5,069-6,083-6,084-6,084-6,090-6,093-6,603
Share buy-backs 000000000000
New share issues 000000000000
Increase/(decrease) in debt -2,60928,74618,23012,655-25,7118,73414,07512,9556,686-13,247-2,245-8,996
Other financing cash flows -66982-318-460-194-1,347-566987-364807-711
Cash flow from financing activities (CFFF) -9,3848,4258,0628,282-26,1713,4716,6456,3051,589-19,701-7,531-16,310
Discontinued activities and other 00000000000
Net cash flow / Change in cash position 3,7873,1683,5221,7327,413-5,1721,761-726-5,1942,90112,143

Balance sheets

SEKm 200620072008200920102011201220132014201520162017
Goodwill 8,84919,96924,81323,82722,93623,89922,09319,95421,49422,08823,36622,781
Other intangible assets 10,26816,53919,14517,80117,77815,60816,60518,74415,62114,32814,55013,112
Total intangible assets 19,11736,50843,95841,62840,71439,50738,69838,69837,11536,41637,91635,893
Fixed tangible assets 54,88069,71282,69975,66873,88978,46283,21177,90586,39986,14990,56890,514
Shares and associated companies 6,8902,2191,9532,0442,0981,8746,1436,3274,82112,32012,41911,224
Other financial assets 000000000000
Deferred tax assets 6,6638,78311,18012,59512,31012,38315,87613,16615,83113,45014,39911,782
Other non-current assets 36,48945,26556,59145,38541,85748,35944,58245,12161,42855,14363,31364,042
Total fixed assets 124,039162,487196,381177,320170,868180,585188,510181,217205,594203,478218,615213,455
Inventories 34,21143,64555,04537,72739,83744,59940,09341,15345,53344,39048,28752,701
Trade receivables 32,65338,36148,05742,26436,66338,08166,34969,48447,83651,62152,99452,205
Other current assets 56,76762,61055,22453,72047,67359,60119,00726,00757,69153,62855,07158,041
Cash and cash equivalents 10,75714,54417,71221,23422,96630,37925,20726,96826,24221,04823,94936,092
Total current assets 134,388159,160176,038154,945147,139172,660150,656163,612177,302170,687180,301199,039
Total assets 258,427321,647372,419332,265318,007353,245339,166344,829382,896374,165398,916412,494
Equity 86,90482,20284,01066,40573,11084,58175,78576,03278,32583,81096,061107,069
Non-controlling interests (minorities) 2845796306291,0111,1001,2661,3331,7231,8011,7031,941
Shareholders equity 87,18882,78184,64067,03474,12185,68177,05177,36580,04885,61197,764109,010
Pension liabilities 8,6929,77411,7058,0517,5106,66518,83512,32216,68313,67314,66914,476
Deferred tax liabilities 4,4229,1278,2603,6384,5225,6364,8502,4062,7963,4955,2705,353
Long-term provisions 6,7507,3018,1366,3605,9365,6485,7406,19012,7409,5369,8049,318
Convertible debt 000000000000
Long-term debt 38,70963,44783,096105,22684,09485,95781,52083,449108,03175,27684,55173,904
Other long-term liabilities 6,7488,28210,4429,88817,76519,97810,71411,47713,73216,53820,32222,309
Total long-term liabilities 65,32197,931121,639133,163119,827123,884121,659115,844153,982118,518134,616125,360
Short-term debt 28,24744,87262,63151,62639,60144,52250,01351,55239,95357,33156,49753,771
Trade payables 38,08052,66351,02535,95547,25056,78846,47253,90156,64755,64855,26465,346
Other current liabilities 39,59143,40052,48444,48737,20842,36943,97146,16752,26657,05754,77459,006
Total current liabilities 105,918140,935166,140132,068124,059143,679140,456151,620148,866170,036166,535178,123
Total equity and liabilities 258,427321,647372,419332,265318,007353,244339,166344,829382,896374,165398,915412,493

Growth rates

[%] 200620072008200920102011201220132014201520162017
Sales growth 0.0%10.0%6.0%-28.0%21.0%17.0%-2.0%-10.0%4.0%10.0%-3.0%11.0%
EBITDA growth 0.0%11.0%-14.0%-106.0%-1,899.0%29.0%-21.0%-29.0%-6.0%86.0%-7.0%21.0%
EBITA growth 0.0%10.0%-22.0%-170.0%-260.0%41.0%-31.0%-49.0%-13.0%189.0%-11.0%34.0%
EBIT growth 0.0%9.0%-29.0%-207.0%-206.0%49.0%-34.0%-59.0%-18.0%300.0%-11.0%46.0%
EBT growth 0.0%6.0%-35.0%-247.0%-175.0%61.0%-38.0%-69.0%8.0%301.0%-6.0%47.0%
Earnings growth 0.0%-8.0%-33.0%-248.0%-174.0%63.0%-38.0%-68.0%-41.0%617.0%-13.0%60.0%

Margins

[%] 200620072008200920102011201220132014201520162017
EBITDA-margin 12.0%12.0%10.0%-1.0%12.0%13.0%11.0%8.0%8.0%13.0%12.0%14.0%
EBITA-margin 9.0%9.0%6.0%-6.0%8.0%10.0%7.0%4.0%3.0%9.0%8.0%10.0%
EBIT-margin 8.0%8.0%5.0%-8.0%7.0%9.0%6.0%3.0%2.0%7.0%7.0%9.0%
EBT-margin 8.0%8.0%5.0%-9.0%6.0%8.0%5.0%2.0%2.0%7.0%6.0%8.0%
Earnings-margin 6.0%5.0%3.0%-7.0%4.0%6.0%4.0%1.0%1.0%5.0%4.0%6.0%

Other key figures

SEKm 200620072008200920102011201220132014201520162017
Tax rate 20.0%30.0%29.0%29.0%28.0%27.0%27.0%19.0%56.0%26.0%31.0%25.0%
Net working capital balance (NWC) 45,96048,55354,81753,26939,71543,12435,00636,57642,14736,93446,31438,595
Net interest bearing debt (NIBD) 64,891103,549139,720143,669108,239106,765125,161120,355138,425125,232131,768106,059
Invested capital (including goodwill) 152,079186,330224,360210,703182,360192,446202,212197,720218,473210,843229,532215,069
Invested capital (excluding goodwill) 143,230166,361199,547186,876159,424168,547180,119177,766196,979188,755206,166192,288
Enterprise value (EV) 257,500322,824227,145267,956346,190259,848305,445291,617310,550286,649348,215416,333

Share data

200620072008200920102011201220132014201520162017
Shares outstanding, millions (excl. treasury) 2,0242,0262,0272,0272,0272,0272,0272,0282,0292,0292,0312,031
Market capitalisation (SEKm) 192,609219,27587,425124,287237,951153,083180,284171,262172,125161,417216,447310,274
Market capitalisation (SEKm) 192,609219,27587,425124,287237,951153,083180,284171,262172,125161,417216,447310,274
Share price (SEK) 97.2108.043.761.0115.076.089.484.585.481.0107.2153.1
Earnings per share (EPS), (SEK) 8.07.44.9-7.35.48.85.51.81.07.46.510.3
Dividend per share (DPS), (SEK) 5.05.52.00.02.53.03.03.03.03.03.34.3

Price multiples

200620072008200920102011201220132014201520162017
Price/Earnings (P/E) 11.8x14.7x8.8x-8.4x21.9x8.6x16.3x47.8x82.0x10.7x16.5x14.8x
Price/Sales (P/S) 0.7x0.8x0.3x0.6x0.9x0.5x0.6x0.6x0.6x0.5x0.7x0.9x
Price/Book value (P/B) 2.2x2.7x1.0x1.9x3.3x1.8x2.4x2.3x2.2x1.9x2.3x2.9x

Enterprise value (EV) multiples

200620072008200920102011201220132014201520162017
Enterprise value/Sales (EV/Sales) 1.0x1.1x0.8x1.2x1.3x0.8x1.0x1.1x1.1x0.9x1.2x1.2x
Enterprise value/EBITDA (EV/EBITDA) 8.3x9.4x7.7x-151.2x10.9x6.3x9.4x12.7x14.4x7.1x9.3x9.2x
Enterprise value/EBITA (EV/EBITA) 11.6x13.2x11.9x-20.0x16.2x8.6x14.7x27.4x33.6x10.7x14.6x13.0x
Enterprise value/EBIT (EV/EBIT) 12.6x14.5x14.3x-15.8x19.2x9.7x17.3x40.9x53.3x12.3x16.7x13.7x