On Jan. 31, Motley Fool Global Gains recommendation and automotive safety expert Autoliv
-
Management attributed the strong revenues to higher-than-expected production of light vehicles, especially in Europe and Japan.
-
In North America, domestic carbuilders such as Ford
and General Motors(NYSE: F) ordered up 5% fewer airbags and seat belts in the fourth quarter than they did last year -- but foreign makers with plants on American soil increased their stateside production by 11%.(NYSE: GM) -
The automotive parts sector is fraught with intimidating competitors, judging by their CAPS scores. But the most direct rival these Swedes have is two-star operator TRW.
(Figures in millions, except per-share data.)
Income Statement Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Sales |
$6,769 |
$6,188 |
9.4% |
Net Profit |
$288 |
$402 |
(28.4%) |
EPS |
$3.68 |
$4.88 |
(24.6%) |
Diluted Shares |
78.3 |
82.5 |
(5.1%) |
Get back to basics with the income statement.
Margin Checkup
FY 2007 |
FY 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
19.7% |
20.5% |
(0.8) |
Operating Margin |
7.4% |
8.4% |
(1.0) |
Net Margin |
4.3% |
6.5% |
(2.2) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Cash + Short-Term Investments |
$154 |
$168 |
(8.5%) |
Accounts Receivable |
$1,231 |
$1,207 |
2.0% |
Inventory |
$561 |
$545 |
2.9% |
Liabilities |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Accounts Payable |
$834 |
$763 |
9.4% |
Long-Term Debt |
$1,040 |
$888 |
17.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Cash From Operations |
$781 |
$560 |
39.5% |
Capital Expenditures |
$314 |
$295 |
6.5% |
Free Cash Flow |
$467 |
$265 |
76.1% |
$295 |
$410 |
(28.2%) |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Toyota
Motor |
$170,600 |
10.1 |
|
Autoliv |
$3,820 |
13.5 |
|
WABCO Holdings |
$2,730 |
28.4 |
|
TRW Automotive Holdings |
$2,240 |
34.1 |
|
Applied Industrial Technologies |
$1,270 |
13.9 |
Using the latest reported numbers from Capital IQ, a division of Standard & Poor's. Keep your partners close and the competition in your vest pocket.
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