Volvo ABVOLAF -1.64%92 Net Margin % is 7.51% as of Mar. 2026, which is 7% above its 10-year median of 7.05. GuruFocus rates VOLAF with a GF Score™ of 92/100 and a GF Value™ of $28.60 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, Volvo AB ranks better than 63.51% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Volvo AB's Net Income for the
three
months ended in Mar. 2026 was $892 Mil. Volvo AB's Revenue for the
three
months ended in Mar. 2026 was $11,888 Mil. Therefore, Volvo AB's net margin for the quarter that ended in Mar. 2026 was 7.51%.
The historical rank and industry rank for Volvo AB's Net Margin % or its related term are showing as below:
VOLAF'
s Net Margin % Range Over the Past 10 Years
Min: 4.35 Med: 7.05 Max: 9.56
Current: 7.02
VOLAF's Net Margin % is ranked better than 63.51% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.14
vs VOLAF: 7.02
Volvo AB (OTCPK:VOLAF) 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 AB Net Margin % Related Terms
Volvo AB Net Margin % Historical Data
* Premium members only.
The historical data trend for Volvo 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 Farm & Heavy Construction Machinery subindustry, Volvo 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 AB Net Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Net Margin % distribution charts can be found below:
* The bar in red indicates where Volvo 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 AB (VOLAF) has a Net Margin % of 7.51% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Volvo AB and its competitors. This is near median its historical median of 7.05. Over the past decade, Volvo AB's Net Margin % has ranged from 4.35 to 9.56. According to the industry distribution chart, Volvo AB ranks #77 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 36.5%.
Is Volvo AB's Net Margin % too high?
Volvo AB's current Net Margin % of 7.51% is near median its 10-year median of 7.05. Over the past 10 years, this metric has ranged from a low of 4.35 to a high of 9.56. The Farm & Heavy Construction Machinery industry median Net Margin % is 5.14. Volvo AB's value of 7.51% is 46.1% above this industry median. Based on the distribution chart, Volvo AB ranks #77 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Volvo AB has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Net Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #77 out of 211 companies for Net Margin %. This puts Volvo AB in the upper half of its industry. The industry median Net Margin % is 5.14. Volvo AB's value of 7.51% is 46.1% above this benchmark. Historically, Volvo AB's own Net Margin % has ranged from 4.35 to 9.56 over the past decade. While the company's 10-year median is 7.05 vs. the industry median of 5.14, Volvo AB has consistently been above 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 Farm & Heavy Construction Machinery company?
The median Net Margin % among Farm & Heavy Construction Machinery companies is 5.14, based on 211 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 AB's current Net Margin % of 7.51% is 46.1% above 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 AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Net Margin % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Net Margin % is 7.51%, which is near median its own 10-year median of 7.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $28.60, compared to a current price of $34.15 — trading 19.4% above its estimated fair value. The current Net Margin % is 7.51%, which is near median its 10-year median of 7.05 and 46.1% above the Farm & Heavy Construction Machinery industry median of 5.14. Volvo AB's overall GF Score™ is 92/100 with 6 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 AB (VOLAF), the current Net Margin % is 7.51% 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 AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 19.4% above its estimated GF Value™ of $28.60.
GuruFocus considers Volvo AB to be Modestly Overvalued.
Key valuation signals for VOLAF:
Net Margin %: 7.51% (near median its 10-year median of 7.05)
GF Value™: $28.60 vs. price of $34.15 (19.4% above fair value)
Industry Position: 46.1% above the Farm & Heavy Construction Machinery median (#77 of 211)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
92GF Score
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