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Volvo AB has the Profitability Rank of 8. It has a higher profitability and may stay that way.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
LTS:0HTP vs CAT, DE, PCAR: Profitability Rank Comparison
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Volvo AB's Profitability Rank falls into.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Volvo AB has the Profitability Rank of 8. It has a higher profitability and may stay that way.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 (LTS:0HTP) has a Profitability Rank of 8 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Volvo AB and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Volvo AB's Profitability Rank has ranged from 5.00 to 8.00.
Is Volvo AB's Profitability Rank too high?
Volvo AB's current Profitability Rank of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. Overall, Volvo AB has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Profitability Rank compare to CAT and DE?
Volvo AB's Profitability Rank of 8 can be compared against companies in the Farm & Heavy Construction Machinery industry. Historically, Volvo AB's own Profitability Rank has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Farm & Heavy Construction Machinery company?
A good Profitability Rank depends on the Farm & Heavy Construction Machinery industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Volvo AB and its competitors. Volvo AB's current Profitability Rank is 8, which is 14% above median its own 10-year median of 7.00. 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 (LTS:0HTP) is currently considered Significantly Overvalued. The stock's GF Value™ is kr243.60, compared to a current price of kr352.50 — trading 44.7% above its estimated fair value. The current Profitability Rank is 8, which is 14% above median its 10-year median of 7.00. Volvo AB's overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Volvo AB (LTS:0HTP), the current Profitability Rank is 8 as of Jun. 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 (LTS:0HTP) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of kr352.50 is trading 44.7% above its estimated GF Value™ of kr243.60.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for LTS:0HTP:
Profitability Rank: 8 (14% above median its 10-year median of 7.00)
GF Value™: kr243.60 vs. price of kr352.50 (44.7% above fair value)
No single metric tells the full story. See the LTS:0HTP 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.
83GF Score
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