Autoliv Inc. (ALV), TRW Automotive Holdings Corp. (TRW): Yet Another Way to Profit From Growing Auto Sales

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Delphi Automotive PLC (NYSE:DLPH) is not just restricted to automotive safety solutions and products. It manufactures a whole gamut of automobile products and components like electrical and electronic, powertrain, safety, and thermal technology solutions for the automotive, commercial vehicle, and other market segments.

Delphi Automotive PLC (NYSE:DLPH), just like TRW Automotive Holdings Corp. (NYSE:TRW), has a high exposure to Europe (41% of its sales in fiscal 2012 came from the region), and weakness in Europe was bound to have an impact on its performance in the previous quarter. As a result, revenue slipped 17% to $4 billion and GAAP diluted earnings went down by 15% to $0.88 per share.

The only positive takeaway from the last reported quarter was that for the first time in its history, it generated positive operating cash flow and declared a regular quarterly cash dividend of $0.17 per share.

Conclusion

Autoliv Inc. (NYSE:ALV) is attractively valued at 6.7 times trailing-12 months EV/EBITDA and carries a decent 2.4% forward dividend yield. It has a good future and is a safe buy in my opinion.

ANUP SINGH has no position in any stocks mentioned. The Motley Fool recommends Autoliv.

The article Yet Another Way to Profit From Growing Auto Sales originally appeared on Fool.com.

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