VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
FRA:VOW - Deutsche Boerse Ag - DE0007664005 - Common Stock - Currency: EUR
Overall VOW gets a fundamental rating of 3 out of 10. We evaluated VOW against 28 industry peers in the Automobiles industry. VOW has a bad profitability rating. Also its financial health evaluation is rather negative. VOW has a valuation in line with the averages, 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.
In the past year VOW had a positive cash flow from operations.
Each year in the past 5 years VOW has been profitable.
Each year in the past 5 years VOW had a positive operating cash flow.
1.2 Ratios
VOW's Return On Assets of 1.45% is on the low side compared to the rest of the industry. VOW is outperformed by 64.29% of its industry peers.
With a Return On Equity value of 5.00%, VOW is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
The Return On Invested Capital of VOW (3.52%) is worse than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOW is in line with the industry average of 6.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 5% | ||
| ROIC | 3.52% |
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
VOW's Profit Margin of 2.84% is on the low side compared to the rest of the industry. VOW is outperformed by 60.71% of its industry peers.
In the last couple of years the Profit Margin of VOW has declined.
VOW's Operating Margin of 5.88% is on the low side compared to the rest of the industry. VOW is outperformed by 67.86% of its industry peers.
VOW's Operating Margin has improved in the last couple of years.
VOW has a Gross Margin of 18.55%. This is comparable to the rest of the industry: VOW outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of VOW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.88% | ||
| PM (TTM) | 2.84% | ||
| GM | 18.55% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VOW is destroying value.
VOW has more shares outstanding than it did 1 year ago.
VOW has more shares outstanding than it did 5 years ago.
VOW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that VOW is in the distress zone and has some risk of bankruptcy.
VOW's Altman-Z score of 1.06 is on the low side compared to the rest of the industry. VOW is outperformed by 60.71% of its industry peers.
VOW has a debt to FCF ratio of 231.52. This is a negative value and a sign of low solvency as VOW would need 231.52 years to pay back of all of its debts.
VOW has a Debt to FCF ratio (231.52) which is in line with its industry peers.
A Debt/Equity ratio of 0.70 indicates that VOW is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.70, VOW is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 231.52 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.76
WACC4.66%
2.3 Liquidity
A Current Ratio of 1.10 indicates that VOW should not have too much problems paying its short term obligations.
The Current ratio of VOW (1.10) is comparable to the rest of the industry.
VOW has a Quick Ratio of 1.10. This is a bad value and indicates that VOW is not financially healthy enough and could expect problems in meeting its short term obligations.
VOW has a Quick ratio of 0.83. This is in the lower half of the industry: VOW underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for VOW have decreased strongly by -38.40% in the last year.
VOW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.28% yearly.
Looking at the last year, VOW shows a small growth in Revenue. The Revenue has grown by 1.62% in the last year.
Measured over the past years, VOW shows a small growth in Revenue. The Revenue has been growing by 5.14% on average per year.
EPS 1Y (TTM)-38.4%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-43.98%
Revenue 1Y (TTM)1.62%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-4.86%
3.2 Future
The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
VOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.28% yearly.
EPS Next Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y9.91%
Revenue Next Year0%
Revenue Next 2Y1.59%
Revenue Next 3Y1.85%
Revenue Next 5Y3.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VOW is valuated cheaply with a Price/Earnings ratio of 6.28.
Compared to the rest of the industry, the Price/Earnings ratio of VOW indicates a somewhat cheap valuation: VOW is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, VOW is valued rather cheaply.
The Price/Forward Earnings ratio is 2.98, which indicates a rather cheap valuation of VOW.
Based on the Price/Forward Earnings ratio, VOW is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VOW to the average of the S&P500 Index (35.19), we can say VOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 2.98 |
4.2 Price Multiples
VOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VOW is cheaper than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VOW is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.41 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VOW does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VOW's earnings are expected to grow with 18.86% in the coming years.
PEG (NY)2.59
PEG (5Y)N/A
EPS Next 2Y20.2%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.47%, VOW is a good candidate for dividend investing.
VOW's Dividend Yield is a higher than the industry average which is at 5.24.
VOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
5.2 History
On average, the dividend of VOW grows each year by 8.12%, which is quite nice.
Dividend Growth(5Y)8.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VOW pays out 62.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VOW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.23%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
FRA:VOW (7/14/2025, 5:35:30 PM)
95.5
-2 (-2.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.97%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.87B
Analysts82.86
Price Target114.42 (19.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP62.23%
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)-0.66%
PT rev (3m)-5.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 2.98 | ||
| P/S | 0.15 | ||
| P/FCF | 44.41 | ||
| P/OCF | 2.61 | ||
| P/B | 0.26 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)15.2
EY15.92%
EPS(NY)31.99
Fwd EY33.5%
FCF(TTM)2.15
FCFY2.25%
OCF(TTM)36.62
OCFY38.35%
SpS651.81
BVpS370.23
TBVpS182.6
PEG (NY)2.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 5% | ||
| ROCE | 4.67% | ||
| ROIC | 3.52% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 5.73% | ||
| OM | 5.88% | ||
| PM (TTM) | 2.84% | ||
| GM | 18.55% | ||
| FCFM | 0.33% |
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%
ROICexcg growth 3Y7.99%
ROICexcg 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-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 231.52 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 54.19% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.92% | ||
| Profit Quality | 11.61% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.06 |
F-Score4
WACC4.66%
ROIC/WACC0.76
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)-38.4%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-43.98%
EPS Next Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y9.91%
Revenue 1Y (TTM)1.62%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-4.86%
Revenue Next Year0%
Revenue Next 2Y1.59%
Revenue Next 3Y1.85%
Revenue Next 5Y3.28%
EBIT growth 1Y-15.94%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
EBIT Next 5Y15.95%
FCF growth 1Y-90.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.99%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%