VOLVO

Analysis of Volvo share price

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Before you start trading the Volvo share price online, we suggest you check out some basic information about the stock such as its live price along with a historical technical analysis of its evolution and some other useful information.

Elements that can influence the price of this asset:

Analysis N°1

First of all, you'll obviously follow the evolution of the global automotive market as well as that of trucks and the fluctuations in demand.

Analysis N°2

The various partnerships and alliances that Volvo could set up in the future are also important because they will allow the group to gain in productivity and/or visibility and reach new markets.

Analysis N°3

Developments in the level of wages and purchasing power in the countries in which Volvo markets its vehicles will be important in determining and anticipating demand.

Analysis N°4

All the innovations made by Volvo in the hybrid vehicle segment in particular or in autonomous vehicles are also indicators of choice and can boost the group's activity.

Analysis N°5

You should of course follow the increasingly strong competition from large international groups which may affect Volvo's sales or reduce its market share.

Analysis N°6

Finally, rising fuel prices can also be a curb on sales in this sector.

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General presentation of Volvo

The Swedish Volvo group is currently the leader in truck design and production in Europe. Most of his activity is in the sale of trucks but it also sells construction equipment, buses and chassis as well as spare parts. The group also offers financial services.

Volvo generates most of its sales in North America and Europe.

Analysis of Volvo share price
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The major competitors of Volvo

Since selling its auto industry to competitor Ford, Volvo has specialized in the production of trucks and construction machinery. As a result, its competition has evolved and it now faces new companies in a very specific market. To help you better analyse the Volvo stock and set up your investment strategies, check out more about these direct competitors.

Construction machinery sector

Volvo faces competition from Caterpillar, Fiat, Komatsu, Hitachi and Liebherr.

Bus Sector

Volvo's main competitors are Daimler, Fiat, Volkswagen and General Motors.


The major partners of Volvo

To finish this article, you can review the main partnerships established by the Volvo group in recent years.

Allianz

In 2013, Volvo signed a partnership with the insurer Allianz France on automobile insurance for customers of the Volvo network.

Microsoft

In 2015, the Volvo group signed a strategic partnership with Microsoft to jointly develop an augmented reality headset allowing customers to visualize their future vehicle before making a purchase.

Autoliv

In 2016, the Volvo group created a partnership with the American group Autoliv, specializing in automotive safety systems, to create a software joint venture for autonomous vehicles.

Google

In 2017, Volvo partnered with Google to integrate the Android operating system into its Sensus navigation system.

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The factors in favour of a rise in the Volvo share price:

First of all, you'll notice the significant diversification of the products offered by Volvo. This group, which operates in six different segments including heavy goods vehicles, construction machinery, customer services, buses, cars and Volvo Penta, doesn't just protect itself against the risks associated with a single specific sector but also allows it to reach a more diversified clientele and therefore expand its sources of income.

Another strong point of the group is its particularly solid market positions in certain segments. The Volvo Group is the leader in certain segments in which it operates and on an international scale. This particularly involves the heavy-duty segment with a very large market share of more than 20% in almost all developed countries. This also applies to the bus and construction equipment sector in which the Volvo Group remains a major player around the world. Finally, this also involves the marine and industrial engine market, with market shares also very valuable for the Volvo Company.

Remaining on Volvo's qualities and strengths, you can also take into account the worldwide expansion of the company which has been a great success. The Volvo Group is able to occupy a prominent place in the international market thanks to its well thought-out and proven expansion strategy. It has succeeded in establishing a lasting foothold in many developed countries and in emerging countries with the acquisition of a significant market share in several segments. As a result, Volvo currently markets its products in Europe, North America, Africa, Asia and Australia.

The last strong point of this company that we can point out here are the research and development capacities at its disposal. The Volvo group invests a lot in the research and development segment and this capacity for innovation gives it a real advantage over the competition and to stay ahead in its sector of activity.

The factors in favour of a drop in the Volvo share price:

First of all, with regard to one of Volvo's two major weaknesses, is the recall of certain products which had the direct effect of impacting the company's brand image. The case we are talking about here took place in 2015 when the group found itself obligated to recall various products, which of course damaged its brand image. That year, the group had to recall the Volvo Trucks from the 2014 and 2015 VNL models particularly due to a panel defect they had. Although this affair took place a few years ago, it still has some repercussions on the current sales of the group which relies on more precautions so that this situation never recur in the future.

Finally, the second and last weak point of the company is the level of its margins, which is down slightly. Investors are closely monitoring the financial results of the company which have shown operating margins and net margins declining in recent years, regardless of the group's revenues, which have continued to grow. The fact that Volvo's margins are falling has of course a direct negative impact on shareholders and is therefore not without consequences for the evolution of the share price of this stock. Therefore, it is important to bear this in mind when analysing and forecasting medium and long term trends.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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