Over the last four quarters, Autoliv generated $1.3B, $1.1B, $915.0M, and $815.0M in free cash flow, respectively. This consistent improvement in FCF, from 6.2% of revenue in Q4 2024 to 10.2% in Q3 2025, indicates the company is effectively managing its working capital and capital expenditures. Autoliv's FCF expansion is being driven by its market-leading position in the automotive safety systems industry, as well as ongoing operational efficiency initiatives. As a dominant global supplier with a broad product portfolio, Autoliv is able to capitalize on rising vehicle production volumes and increasing demand for advanced safety technologies. The company's net debt-to-EBITDA ratio has also improved from 1.8x a year ago to 1.3x in the latest quarter, reflecting the strengthening balance sheet. This lower leverage provides Autoliv with greater financial flexibility to fund growth investments, pursue strategic acquisitions, and potentially return more cash to shareholders through dividends and share repurchases. Given Autoliv's market leadership, improving cash flow, and balance sheet optimization, I see the potential for the stock to outperform the broader market over the next 12 months. I am bullish on Autoliv with a conviction of 7/10, as the company appears well-positioned to continue capitalizing on industry tailwinds.

Research these companies