Volvo Car ABVLVCY -2.98%74 Net Margin % is 2.22% as of Mar. 2026, which is 26% below its 10-year median of 2.99. GuruFocus rates VLVCY with a GF Score™ of 74/100 and a GF Value™ of $5.30 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,326 Vehicles & Parts companies, Volvo Car AB ranks worse than 74.96% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Volvo Car AB's Net Income for the
three
months ended in Mar. 2026 was $173 Mil. Volvo Car AB's Revenue for the
three
months ended in Mar. 2026 was $7,794 Mil. Therefore, Volvo Car AB's net margin for the quarter that ended in Mar. 2026 was 2.22%.
The historical rank and industry rank for Volvo Car AB's Net Margin % or its related term are showing as below:
VLVCY'
s Net Margin % Range Over the Past 10 Years
Min: 0.05 Med: 2.99 Max: 4.72
Current: 0.17
VLVCY's Net Margin % is ranked worse than 74.96% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 3.205
vs VLVCY: 0.17
Volvo Car AB (OTCPK:VLVCY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Volvo Car AB Net Margin % Related Terms
Volvo Car AB Net Margin % Historical Data
* Premium members only.
The historical data trend for Volvo Car AB's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Manufacturers subindustry, Volvo Car AB's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Volvo Car AB Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Net Margin % distribution charts can be found below:
* The bar in red indicates where Volvo Car AB's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Volvo Car AB (VLVCY) has a Net Margin % of 2.22% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Volvo Car AB and its competitors. This is 26% below median its historical median of 2.99. Over the past decade, Volvo Car AB's Net Margin % has ranged from 0.05 to 4.72. According to the industry distribution chart, Volvo Car AB ranks #994 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 75%.
Is Volvo Car AB's Net Margin % too high?
Volvo Car AB's current Net Margin % of 2.22% is 26% below median its 10-year median of 2.99. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 4.72. The Vehicles & Parts industry median Net Margin % is 3.21. Volvo Car AB's value of 2.22% is 30.7% below this industry median. Based on the distribution chart, Volvo Car AB ranks #994 out of 1326 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Volvo Car AB has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Volvo Car AB's Net Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Volvo Car AB ranks #994 out of 1326 companies for Net Margin %. This places Volvo Car AB in the lower half of its industry. The industry median Net Margin % is 3.21. Volvo Car AB's value of 2.22% is 30.7% below this benchmark. Historically, Volvo Car AB's own Net Margin % has ranged from 0.05 to 4.72 over the past decade. While the company's 10-year median is 2.99 vs. the industry median of 3.21, Volvo Car AB has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.21, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo Car AB's current Net Margin % of 2.22% is 30.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Volvo Car AB and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo Car AB's current Net Margin % is 2.22%, which is 26% below median its own 10-year median of 2.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo Car AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo Car AB (VLVCY) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.30, compared to a current price of $4.03 — trading 24% below its estimated fair value. The current Net Margin % is 2.22%, which is 26% below median its 10-year median of 2.99 and 30.7% below the Vehicles & Parts industry median of 3.21. Volvo Car AB's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Volvo Car AB (VLVCY), the current Net Margin % is 2.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Volvo Car AB (VLVCY) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo Car AB stock appears to be undervalued.
The current stock price of $4.03 is trading 24% below its estimated GF Value™ of $5.30.
GuruFocus considers Volvo Car AB to be Modestly Undervalued.
Key valuation signals for VLVCY:
Net Margin %: 2.22% (26% below median its 10-year median of 2.99)
GF Value™: $5.30 vs. price of $4.03 (24% below fair value)
Industry Position: 30.7% below the Vehicles & Parts median (#994 of 1326)
No single metric tells the full story. See the VLVCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it has a presence in China, the USA; Sweden; Germany; the United Kingdom; Japan, and South Korea. The company generates maximum revenue from the sale of new cars.
74GF Score
Get the complete analysis for VLVCY
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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