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Volvo Car AB (publ.)

VOLCAR-B.ST
48
Auto - Manufacturers · Consumer Cyclical
Price
kr 19.61
+0.34 (+1.74%)
Market Cap
kr 58.12B
Exchange
Stockholm Stock Exchange
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Good
Stability
Strong
Valuation
Strong

Share count rising — dilution

+15.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 2.58B (2021) → 2.97B (2025)

Winston Score History

The full picture

Volvo Car AB makes passenger cars and sells them to everyday consumers around the world. Its main products are SUVs, sedans, and electric vehicles sold under the Volvo Cars brand, which is known for safety features and Scandinavian design. The company is headquartered in Gothenburg, Sweden, and is majority-owned by Chinese automaker Geely.

Volvo Cars earns money primarily by selling vehicles through a global network of dealerships, and it also generates revenue from financial services and software subscriptions tied to its cars. It operates in over 100 countries, with Europe, China, and the United States as its largest markets, and it generated roughly 500 billion Swedish kronor in annual revenue in recent years. The company is pushing hard into fully electric vehicles, which it sees as its main growth driver, but rising EV competition — especially from Chinese automakers — and thin operating margins are the most immediate risks it faces.

Score breakdown

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Quality

Profit per sale
Gross Margin
16.8%
Thin — 16.8% gross margin
Profit after running costs
Operating Margin
0.8%
Thin — 0.8% operating margin
Return on the money invested
ROCE
5.5%
Weak — 5.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-13.2%
Shrinking sales (-13.2% YoY)
Profit growth
EPS YoY
>+1,000%
Earnings growing fast (>+1,000% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
204%
Turns 204% of profit into real cash
Spare cash per sale
FCF Margin
-1.4%
Burning cash (-1.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.25
Conservative — low debt load (0.25)
Covers its interest
Interest Cover
7.14x
Adequate interest coverage (7.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
6.2x
Attractive valuation — P/E 6.2

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+1.8
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.
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