Autoliv, Inc. (NYSE:ALV)
CAPS Rating:
The Company is a supplier of automotive safety systems with a range of product offerings, including modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, safety electronics etc.
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Magic Formula screener (not Top 50), TMF pick. Recently raised their dividend payout (payout ratio appears to be very sustainable, under 20% of earnings). Along with the payout, debt is being paid down very nicely.Results for ticker 'ALV' (Autoliv):Earnings Yield: 11.4%MFI Return on Capital: 49.1%MagicDiligence Research for 'ALV':No research available.Instant Diligence:The Earnings Yield of 11.4% is High.The MFI Return on Capital of 49.1% is High.Near-term Financial Health appears to be OK. The current ratio is 1.40.Calculations:(for quarter ended 2010-09-28)Market Cap = Stock_Price * Shares = 73.79 * 92.80 = 6847.71Excess Cash = Cash - MAX(0; (Current Liabilities - Current Assets + Cash)) = 487.20 - MAX(0; (1911.40 - 2671.50 + 487.20)) = 487.20Enterprise Value = Market Cap + Total Debt - Excess Cash = 6847.71 + 836.20 - 487.20 = 7196.71MFI Invested Capital = Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash = 5643.60 - 1615.10 - 114.00 - 1911.40 + 156.20 - 487.20 = 1672.10Earnings Yield = Operating Earnings / Enterprise Value = 821.10 / 7196.71 = 0.114 (11.4%)MFI Return on Capital = Operating Earnings / MFI Invested Capital = 821.10 / 1672.10 = 0.491 (49.1%)
Looking a bit more attractive now:
Results for ticker 'ALV' (Autoliv Inc.):
Earnings Yield: 17.6%
MFI Return on Capital: 47.3%
MagicDiligence Research for 'ALV':
No research available.
Instant Diligence:
The Earnings Yield of 17.6% is Very High.
The MFI Return on Capital of 47.3% is High.
Near-term Financial Health appears to be Very Good. The current ratio is 1.44.
Calculations:
(for quarter ended 2011-06-30)
Market Cap = Stock_Price * Shares
= 53.53 * 94.00
= 5031.00
Excess Cash = Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
= 559.70 - MAX(0; (2074.70 - 2979.60 + 559.70))
= 559.70
Enterprise Value = Market Cap + Total Debt - Excess Cash
= 5031.00 + 693.80 - 559.70
= 5165.10
MFI Invested Capital = Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash
= 6084.70 - 1624.20 - 112.60 - 2074.70 + 205.90 - 559.70
= 1919.40
Earnings Yield = Operating Earnings / Enterprise Value
= 907.50 / 5165.10
= 0.176 (17.6%)
MFI Return on Capital = Operating Earnings / MFI Invested Capital
= 907.50 / 1919.40
= 0.473 (47.3%)