Rankings Machinery & automation Volvo
Volvo
78
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Multiples vs own history−5
- North America and EPA27−4
- Margin−3
Strengths
- Order intake+2
- Net cash (industrial)+2
- Service revenue+1
How the score is built
From 100 to 78, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 306.70 SEK
- Median analyst target
- 355.00 SEK
- Upside to median
- +15.7%
- Analysts
- 22
- Target range
- 285.00 – 450.00 SEK
- 52-week change
- +17%
- P/E (trailing)
- 16.0
- Forward P/E
- 12.2
- PEG
- 1.34
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−12 of −30
- −3MarginThe operating margin is 10.4% TTM vs 14.6% in 2023 and 13.0% in 2024, and the gross margin has fallen to 24.4% from 26.4%. The adjusted Q2 margin of 11.7% is better, but still clearly below the peak.
- −3ROICROIC has fallen from 19.1% (2023) and 14.5% (2024) to 9.4% TTM; ROE from 28.8% to 20.9%. Volvo's own ROCE for the industrial operations is 26.8%, but the trend is the same: lower returns than two years ago.
- −3Quality of growthNeither bigger nor stronger: revenue fell 4.6% in 2024 and 9.0% in 2025 and is SEK 471.5bn TTM vs 552bn in 2023; EPS is 17.62 vs 24.78 in 2024. Construction equipment has fallen from SEK 105bn to 78bn since 2023.
- −3Future segment (electric trucks)Volvo's share of the EU29 market for battery-electric heavy trucks has fallen to 16.3% from 33.8%, while its overall share is 19.6%. Deliveries of electric vehicles fell 2% (12 months), so competitors are catching up in the segment that has to carry the 2030 requirements.
Price
Today's multiples against the company's own history and its peers. · 1 finding−5 of −35
- −5Multiples vs own historyTrailing P/E 18.5 vs 10.7–17.5 in 2021–2025 (highest in the period), forward P/E 13.1 vs 9.8–15.2 (average about 12.3), P/B 3.75 vs 2.3–3.4 (highest) and EV/EBIT 18.4 vs 8.8–16.4. The market is already paying for a cyclical recovery.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−10 of −35
- −3US tariffsTariffs cost about SEK 1.1bn in the truck division in Q2. Q3 is expected to be offset by IEEPA refunds (a one-off), while Section 232 credits for heavy vehicles are not yet booked and await the authorities.
- −4North America and EPA27The stock has fallen about 8% from its August peak on weaker order intake for heavy trucks in the US and uncertainty about the transition to the EPA27 emissions rules (Sept 2026). Management must also accelerate deliveries sharply in H2 to reach its market forecast of 265,000 units.
- −2CostsManagement warns of continued inflation in freight and material costs and that the benefit from capitalising development costs fades in H2.
- −1Quality and recallsMack and Volvo have issued 'do not drive' recalls of 2026–2027 model-year trucks (loose wheel nuts) and a separate recall of about 2,800 VNL/VNR trucks for an ABS fault.
Plus
Only documented strengths. · 3 findings+5 of +15
- +2Order intakeBook-to-bill of 150% in North America, 135% in South America and 121% in Asia in Q2; orders for electric vehicles +39% to 5,521 (12 months).
- +2Net cash (industrial)The industrial operations had a positive net financial position of SEK 34.7bn after the Q2 dividend payment; operating cash flow in the industrial operations was SEK 5.8bn in the quarter.
- +1Service revenueService sales grew 7% organically to SEK 126bn (12 months), about a quarter of revenue and less cyclical than new sales.
Caveats
What the score does not capture, or where the data is weak.
The B share (VOLV.B). Industry set to 'Machinery & automation' rather than 'Autos & parts': under GICS Volvo is a machinery and heavy-vehicle maker (trucks 68%, construction equipment 16%, buses and Volvo Penta the rest), and comparable companies are the Atlas Copco/Sandvik type rather than carmakers. Cyclical = yes, because demand for trucks and construction equipment follows the freight and replacement cycle (revenue has fallen from SEK 552bn to 472bn since 2023). stockanalysis' net debt of SEK 213bn and EV multiples include Volvo Financial Services' loan book; the industrial business has net cash. Q3 report 23 Oct. 2026.
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