Autoliv Stock Is Up 32% in a Year, But One Fund Just Cut $3.8 Million

Company Overview - Autoliv, Inc. is a leading supplier of automotive safety systems with a global footprint and a diversified customer base among major car manufacturers [6] - The company generates revenue through the sale of safety system modules and components to automotive manufacturers worldwide, focusing on both OEM supply contracts and ongoing product innovation [8] - Autoliv's revenue for the trailing twelve months (TTM) is $10.81 billion, with a net income of $735 million and a dividend yield of 2.59% [4] Recent Developments - On February 2, Tweedy, Browne Co disclosed the sale of 31,740 shares of Autoliv, valued at approximately $3.79 million, reducing their stake to 400,924 shares [2][3] - The value of Tweedy, Browne's position in Autoliv decreased by $5.84 million due to the sale and market movements over the quarter [2] - Autoliv's shares were priced at $120.49 as of February 2, reflecting a 32% increase over the past year, outperforming the S&P 500 by 12.78 percentage points [3] Financial Performance - In the most recent quarterly release, Autoliv reported $2.82 billion in revenue, representing a 7.7% year-over-year increase, with operating cash flow reaching a record $544 million [10] - Full-year operating cash flow totaled $1.16 billion, supporting dividends, buybacks, and maintaining a leverage ratio well below management's 1.5x ceiling [10] Future Outlook - Management is guiding for roughly flat organic growth in 2026, with an adjusted operating margin expected to be between 10.5% and 11.0% [11] - A weaker first quarter is anticipated, with expectations for improvement later in the year, indicating a solid but not explosive growth outlook [11] Investment Perspective - Autoliv remains a meaningful position in Tweedy Browne's portfolio, representing nearly 4% of assets, alongside other high-conviction holdings [12] - The recent share price increase suggests a disciplined approach to risk management, as even strong companies may warrant partial profit-taking after significant gains [9][12]