VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
FRA:VOW - Deutsche Boerse Ag - DE0007664005 - Common Stock - Currency: EUR
VOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 28 industry peers in the Automobiles industry. VOW may be in some trouble as it scores bad on both profitability and health. VOW has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
In the past 5 years VOW has always been profitable.
VOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VOW's Return On Assets of 1.69% is on the low side compared to the rest of the industry. VOW is outperformed by 71.43% of its industry peers.
VOW has a worse Return On Equity (5.88%) than 71.43% of its industry peers.
The Return On Invested Capital of VOW (3.80%) is worse than 75.00% of its industry peers.
VOW had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 7.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.88% | ||
| ROIC | 3.8% |
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 has a Profit Margin of 3.30%. This is in the lower half of the industry: VOW underperforms 64.29% of its industry peers.
VOW's Profit Margin has declined in the last couple of years.
VOW has a Operating Margin of 6.45%. This is in the lower half of the industry: VOW underperforms 71.43% of its industry peers.
VOW's Operating Margin has improved in the last couple of years.
VOW has a Gross Margin of 18.90%. This is comparable to the rest of the industry: VOW outperforms 50.00% of its industry peers.
VOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | 3.3% | ||
| GM | 18.9% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOW is destroying value.
The number of shares outstanding for VOW remains at a similar level compared to 1 year ago.
The number of shares outstanding for VOW remains at a similar level compared to 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 1.09, we must say that VOW is in the distress zone and has some risk of bankruptcy.
VOW has a Altman-Z score of 1.09. This is in the lower half of the industry: VOW underperforms 67.86% of its industry peers.
VOW has a Debt/Equity ratio of 0.74. This is a neutral value indicating VOW is somewhat dependend on debt financing.
The Debt to Equity ratio of VOW (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.8
WACC4.75%
2.3 Liquidity
A Current Ratio of 1.13 indicates that VOW should not have too much problems paying its short term obligations.
VOW has a Current ratio of 1.13. This is comparable to the rest of the industry: VOW outperforms 57.14% of its industry peers.
A Quick Ratio of 0.87 indicates that VOW may have some problems paying its short term obligations.
VOW has a Quick ratio of 0.87. This is comparable to the rest of the industry: VOW outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
VOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.75%.
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 a small growth in Revenue. In the last year, the Revenue has grown by 0.74%.
Measured over the past years, VOW shows a small growth in Revenue. The Revenue has been growing by 6.44% on average per year.
EPS 1Y (TTM)7.75%
EPS 3Y24.3%
EPS 5Y6.24%
EPS Q2Q%-32.98%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%0.22%
3.2 Future
The Earnings Per Share is expected to grow by 1.53% on average over the next years.
Based on estimates for the next years, VOW will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y-30.76%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
EPS Next 5Y1.53%
Revenue Next Year1.7%
Revenue Next 2Y2.01%
Revenue Next 3Y1.94%
Revenue Next 5Y3.33%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 3.14.
Compared to the rest of the industry, the Price/Earnings ratio of VOW indicates a rather cheap valuation: VOW is cheaper than 85.71% of the companies listed in the same industry.
VOW is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.42, which indicates a rather cheap valuation of VOW.
67.86% of the companies in the same industry are more expensive than VOW, based on the Price/Forward Earnings ratio.
VOW is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.14 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
5. Dividend
5.1 Amount
VOW has a Yearly Dividend Yield of 6.37%, which is a nice return.
Compared to an average industry Dividend Yield of 7.10, VOW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.37% |
5.2 History
The dividend of VOW is nicely growing with an annual growth rate of 14.79%!
Dividend Growth(5Y)14.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VOW pays out 53.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VOW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.9%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
FRA:VOW (4/25/2025, 7:00:00 PM)
100.3
+1.4 (+1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners19.23%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap50.28B
Analysts80
Price Target115.18 (14.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.37% |
Yearly Dividend19.58
Dividend Growth(5Y)14.79%
DP53.9%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.68%
Min EPS beat(2)-64.97%
Max EPS beat(2)-16.4%
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)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)2.02%
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)-5.99%
PT rev (3m)-1.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.77%
EPS NY rev (3m)-24.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.14 | ||
| Fwd PE | 4.42 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 2.93 | ||
| P/B | 0.28 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 2.83 |
EPS(TTM)31.98
EY31.88%
EPS(NY)22.68
Fwd EY22.61%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)34.22
OCFY34.11%
SpS647.63
BVpS363.64
TBVpS177.46
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.88% | ||
| ROCE | 5.04% | ||
| ROIC | 3.8% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 6.7% | ||
| OM | 6.45% | ||
| PM (TTM) | 3.3% | ||
| GM | 18.9% | ||
| 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%
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 | 0.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 54.88% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 32.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.09 |
F-Score4
WACC4.75%
ROIC/WACC0.8
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%-32.98%
EPS Next Y-30.76%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
EPS Next 5Y1.53%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%0.22%
Revenue Next Year1.7%
Revenue Next 2Y2.01%
Revenue Next 3Y1.94%
Revenue Next 5Y3.33%
EBIT growth 1Y-12.4%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year150.71%
EBIT Next 3Y41.04%
EBIT Next 5Y17.67%
FCF growth 1Y-101.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.37%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%