3 Undervalued Automobile Components Stocks for Thursday, July 09

By Tudor Pop
July 09, 2026
Diamond graphic indicating best value stocks in their industry
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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Automobile Components industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Automobile Components Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Automobile Components Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Automobile Components industry for Friday, July 10, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Automobile Components industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
Autoliv, Inc. ALV 0.82 12.8 6.7 6.5% 3.38 27.3 B
Dauch Corporation DCH 0.12 na 12.3 (64.0%) 0.81 na B
Strattec Security Corporation STRT 0.55 12.9 3.4 (1.1%) 1.32 5.5 A

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Autoliv, Inc.’s Value Grade

Value Grade:

Metric Score ALV Industry Median
Price/Sales 27 0.82 0.64
Price/Earnings 28 12.8 20.3
EV/EBITDA 18 6.7 8.3
Shareholder Yield 11 6.5% 0.0%
Price/Book Value 67 3.38 1.48
Price/Free Cash Flow 63 27.3 16.4

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in the Americas, Europe, China, and Asia. The company offers passive safety systems, such as modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, pedestrian protection systems, steering wheels, inflator technologies, battery cut-off switches, and seatbelts. It also develops and manufactures mobility safety solutions, including passive safety systems for commercial vehicles; and safety solutions for riders of motorcycles and bikes. The company primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is based in Stockholm, Sweden.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Autoliv, Inc. has a Value Score of 74, which is considered to be undervalued.

When you look at Autoliv, Inc.’s price-to-sales ratio at 0.82 compared to the industry median at 0.64, this company has a higher price relative to revenue compared to its peers. This could make Autoliv, Inc.’s stock less attractive for value investors.

Autoliv, Inc.’s price-earnings ratio is 12.80 compared to the industry median at 20.30. This means it has a lower share price relative to earnings compared to its peers. This could make Autoliv, Inc. more attractive for value investors.

Now, let’s assess Autoliv, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.7, when compared to the industry median of 8.3, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Autoliv, Inc.’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Autoliv, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.48. This could make Autoliv, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Autoliv, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Autoliv, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 16.40. This could make Autoliv, Inc. less attractive because the higher P/FCF ratio indicates that Autoliv, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Dauch Corporation’s Value Grade

Value Grade:

Metric Score DCH Industry Median
Price/Sales 6 0.12 0.64
Price/Earnings na na 20.3
EV/EBITDA 48 12.3 8.3
Shareholder Yield 90 (64.0%) 0.0%
Price/Book Value 16 0.81 1.48
Price/Free Cash Flow na na 16.4

Dauch Corporation, together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles. It operates through two segments, Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides range of products, such as engine, transmission, driveline, and safety-critical components for traditional internal combustion engine and electric vehicle architectures, including light vehicles, commercial vehicles, and off-highway vehicles, as well as products for industrial markets. It operates in North America, Asia, Europe, and South America. Dauch Corporation was formerly known as American Axle & Manufacturing Holdings, Inc. and changed its name to Dauch Corporation in January 2026. The company was founded in 1994 and is headquartered in Detroit, Michigan.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Dauch Corporation has a Value Score of 65, which is considered to be undervalued.

Dauch Corporation’s price-to-book ratio is higher than its peers. This could make Dauch Corporation less attractive for value investors when compared to the industry median at 1.48.

You can read more about Dauch Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Strattec Security Corporation’s Value Grade

Value Grade:

Metric Score STRT Industry Median
Price/Sales 20 0.55 0.64
Price/Earnings 29 12.9 20.3
EV/EBITDA 6 3.4 8.3
Shareholder Yield 56 (1.1%) 0.0%
Price/Book Value 34 1.32 1.48
Price/Free Cash Flow 11 5.5 16.4

Strattec Security Corporation designs, develops, manufactures, and markets automotive security, access control, and user interface controls products in North America and internationally. The company offers mechanical and electronically enhanced locks and keys, fobs, passive entry passive start systems, digital key, phone as a key systems, steering column and instrument panel ignition lock housings, latches, power sliding door systems, power tailgate and lift gate systems, power deck lid systems, door handles, steering wheel switches and controller, E-shifters, paddle switches, and related products. It also provides service and aftermarket support services for its products. It markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive customers. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Strattec Security Corporation has a Value Score of 89, which is considered to be undervalued.

Strattec Security Corporation’s price-earnings ratio is 12.9 compared to the industry median at 20.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Strattec Security Corporation more attractive for value investors.

Strattec Security Corporation’s price-to-book ratio is higher than its peers. This could make Strattec Security Corporation less attractive for value investors when compared to the industry median at 1.48.

You can read more about Strattec Security Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

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Other Automobile Components Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Automobile Components stocks as well as other industrys.

Choosing Which of the 3 Best Automobile Components Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

  • Autoliv, Inc. stock has a Value Grade of B.
  • Dauch Corporation stock has a Value Grade of B.
  • Strattec Security Corporation stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Automobile Components industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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Additional Resources About Automobile Components Stocks

Want to learn more about Automobile Components stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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