Autoliv, Inc. (NYSE:ALV)

Identified with the Value-At-a-Reasonable Price screen. ROE >20%. Quick ratio = 1.1 and current ratio = 1.5. Automobile sales are increasing world-wide and ALV should benefit.

Just picking some low P/E stocks and see how they do.

12/16

Safety for cars, more sales with increasing global consumption of cars!

Priced for near bankruptcy. Overhang is anti-trust investigation plus general repeat recession fears. ALV will outlast these both and is providing a nice discount for the risk.

tort screen

Great balance sheet and a rising dividend make this car safety device maker a great story. Long term they should do very well.

Strong partnership with FLIR. As FLIR turns into gold, so will Autoliv.

Stable Dividends Screen

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
   =   6847.71

Excess Cash   =   Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
   =   487.20 - MAX(0; (1911.40 - 2671.50 + 487.20))
   =   487.20

Enterprise Value   =   Market Cap + Total Debt - Excess Cash
   =   6847.71 + 836.20 - 487.20
   =   7196.71

MFI 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
   =   1672.10

Earnings 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%)

ride to the top

car sales going up in china, brazil, us

universal exsposure, quality product, need will remain

They are a global leader, and their Asian growth has outpaced their EU and NA growth recently. THey've booked programs through 2014 that essentially guarantee a 45% growth in revenue, and will aggressively restrain ocsts, as they've shown their ability to do in recent years

Outperform, PEG<1, 4* S&P

Inevitable overall world recovery (when, I do not know) , plus car sales postponed due to crisis, plus Asia new car demand plus good financial condition

proven cash flow generation, best of breed

international presence, especially Asian emerging markets, fueled (npi) by a growing middle class.

with the restructure of the auto industry,i beleieve this is going back to atleast 25$