VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
Europe - FRA:VOW - DE0007664005 - Common Stock
91.35 EUR
-0.15 (-0.16%)
VOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 31 industry peers in the Automobiles industry. While VOW is still in line with the averages on profitability rating, there are concerns on its financial health. VOW is valued correctly, but it does not seem to be growing. VOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VOW had positive earnings in the past year.
VOW had a positive operating cash flow in the past year.
Each year in the past 5 years VOW has been profitable.
VOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VOW has a Return On Assets (1.31%) which is in line with its industry peers.
The Return On Equity of VOW (4.57%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.29%, VOW is in line with its industry, outperforming 45.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VOW is below the industry average of 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.57% | ||
| ROIC | 3.29% |
ROA(3y)2.33%
ROA(5y)2.3%
ROE(3y)8%
ROE(5y)8.17%
ROIC(3y)4.41%
ROIC(5y)3.85%
1.3 Margins
Looking at the Profit Margin, with a value of 2.58%, VOW is in line with its industry, outperforming 54.84% of the companies in the same industry.
In the last couple of years the Profit Margin of VOW has declined.
The Operating Margin of VOW (5.49%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VOW has grown nicely.
With a Gross Margin value of 18.09%, VOW perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
VOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.49% | ||
| PM (TTM) | 2.58% | ||
| GM | 18.09% |
OM growth 3Y2.7%
OM growth 5Y1.7%
PM growth 3Y-17.74%
PM growth 5Y-8.97%
GM growth 3Y-0.53%
GM growth 5Y-0.91%
2. Health
2.1 Basic Checks
VOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VOW has more shares outstanding
VOW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VOW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that VOW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, VOW is in line with its industry, outperforming 51.61% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that VOW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, VOW perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.72
WACC4.58%
2.3 Liquidity
A Current Ratio of 1.09 indicates that VOW should not have too much problems paying its short term obligations.
VOW's Current ratio of 1.09 is on the low side compared to the rest of the industry. VOW is outperformed by 61.29% of its industry peers.
VOW has a Quick Ratio of 1.09. This is a bad value and indicates that VOW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.82, VOW is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.75% over the past year.
Measured over the past 5 years, VOW shows a small growth in Earnings Per Share. The EPS has been growing by 6.24% on average per year.
VOW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.49%.
VOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.44% yearly.
EPS 1Y (TTM)7.75%
EPS 3Y24.3%
EPS 5Y6.24%
EPS Q2Q%-103.91%
Revenue 1Y (TTM)15.49%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%2.96%
3.2 Future
Based on estimates for the next years, VOW will show a decrease in Earnings Per Share. The EPS will decrease by -0.27% on average per year.
The Revenue is expected to grow by 2.73% on average over the next years.
EPS Next Y-30.76%
EPS Next 2Y-25.08%
EPS Next 3Y-10.16%
EPS Next 5Y-0.27%
Revenue Next Year1.7%
Revenue Next 2Y0.93%
Revenue Next 3Y1.28%
Revenue Next 5Y2.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.44, which indicates a very decent valuation of VOW.
VOW's Price/Earnings ratio is rather cheap when compared to the industry. VOW is cheaper than 90.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, VOW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.09, the valuation of VOW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOW indicates a rather cheap valuation: VOW is cheaper than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, VOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 5.09 |
4.2 Price Multiples
74.19% of the companies in the same industry are more expensive than VOW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.16 |
4.3 Compensation for Growth
VOW's earnings are expected to decrease with -10.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y-25.08%
EPS Next 3Y-10.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.98%, VOW is a good candidate for dividend investing.
VOW's Dividend Yield is rather good when compared to the industry average which is at 5.51. VOW pays more dividend than 93.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
5.2 History
The dividend of VOW is nicely growing with an annual growth rate of 8.12%!
Dividend Growth(5Y)8.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
52.86% of the earnings are spent on dividend by VOW. This is a bit on the high side, but may be sustainable.
The Dividend Rate of VOW has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP52.86%
EPS Next 2Y-25.08%
EPS Next 3Y-10.16%
FRA:VOW (10/31/2025, 7:00:00 PM)
91.35
-0.15 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.58%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.79B
Revenue(TTM)322.28B
Net Income(TTM)8.35B
Analysts82.86
Price Target115.95 (26.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP52.86%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.09%
PT rev (3m)1.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.95%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 5.09 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 2.87 | ||
| P/B | 0.25 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)10.82
EY11.84%
EPS(NY)17.95
Fwd EY19.65%
FCF(TTM)-3.37
FCFYN/A
OCF(TTM)31.87
OCFY34.89%
SpS646.76
BVpS364.81
TBVpS177.23
PEG (NY)N/A
PEG (5Y)1.35
Graham Number298.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.57% | ||
| ROCE | 4.36% | ||
| ROIC | 3.29% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 5.34% | ||
| OM | 5.49% | ||
| PM (TTM) | 2.58% | ||
| GM | 18.09% | ||
| FCFM | N/A |
ROA(3y)2.33%
ROA(5y)2.3%
ROE(3y)8%
ROE(5y)8.17%
ROIC(3y)4.41%
ROIC(5y)3.85%
ROICexc(3y)5.54%
ROICexc(5y)4.84%
ROICexgc(3y)7.7%
ROICexgc(5y)6.68%
ROCE(3y)5.84%
ROCE(5y)5.1%
ROICexgc growth 3Y7.99%
ROICexgc growth 5Y3.32%
ROICexc growth 3Y7.26%
ROICexc growth 5Y2.38%
OM growth 3Y2.7%
OM growth 5Y1.7%
PM growth 3Y-17.74%
PM growth 5Y-8.97%
GM growth 3Y-0.53%
GM growth 5Y-0.91%
F-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 53.79% | ||
| Cap/Sales | 5.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.05 |
F-Score3
WACC4.58%
ROIC/WACC0.72
Cap/Depr(3y)51.16%
Cap/Depr(5y)46.96%
Cap/Sales(3y)4.83%
Cap/Sales(5y)4.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.75%
EPS 3Y24.3%
EPS 5Y6.24%
EPS Q2Q%-103.91%
EPS Next Y-30.76%
EPS Next 2Y-25.08%
EPS Next 3Y-10.16%
EPS Next 5Y-0.27%
Revenue 1Y (TTM)15.49%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%2.96%
Revenue Next Year1.7%
Revenue Next 2Y0.93%
Revenue Next 3Y1.28%
Revenue Next 5Y2.73%
EBIT growth 1Y-21.5%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year125.06%
EBIT Next 3Y37.04%
EBIT Next 5Y14.33%
FCF growth 1Y-140.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.24%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%
VOLKSWAGEN AG / VOW.DE FAQ
What is the fundamental rating for VOW stock?
ChartMill assigns a fundamental rating of 3 / 10 to VOW.DE.
What is the valuation status for VOW stock?
ChartMill assigns a valuation rating of 5 / 10 to VOLKSWAGEN AG (VOW.DE). This can be considered as Fairly Valued.
How profitable is VOLKSWAGEN AG (VOW.DE) stock?
VOLKSWAGEN AG (VOW.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for VOW stock?
The financial health rating of VOLKSWAGEN AG (VOW.DE) is 1 / 10.
How sustainable is the dividend of VOLKSWAGEN AG (VOW.DE) stock?
The dividend rating of VOLKSWAGEN AG (VOW.DE) is 7 / 10 and the dividend payout ratio is 52.86%.