VOLKSWAGEN AG (VOW.DE)
DE0007664005 - Common Stock
VOW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Automobiles industry. VOW has a medium profitability rating, but doesn't score so well on its financial health evaluation. VOW is valued correctly, but it does not seem to be growing. Finally 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.
In the past 5 years VOW always reported a positive cash flow from operatings.
1.2 Ratios
VOW's Return On Assets of 2.37% is on the low side compared to the rest of the industry. VOW is outperformed by 70.00% of its industry peers.
VOW has a worse Return On Equity (8.39%) than 80.00% of its industry peers.
VOW's Return On Invested Capital of 4.21% is on the low side compared to the rest of the industry. VOW is outperformed by 73.33% of its industry peers.
VOW had an Average Return On Invested Capital over the past 3 years of 4.09%. This is significantly below the industry average of 9.51%.
The 3 year average ROIC (4.09%) for VOW is below the current ROIC(4.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 8.39% | ||
| ROIC | 4.21% |
ROA(3y)2.7%
ROA(5y)2.5%
ROE(3y)9.46%
ROE(5y)9.18%
ROIC(3y)4.09%
ROIC(5y)3.74%
1.3 Margins
With a Profit Margin value of 4.60%, VOW is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
VOW's Profit Margin has been stable in the last couple of years.
The Operating Margin of VOW (6.99%) is worse than 80.00% of its industry peers.
VOW's Operating Margin has improved in the last couple of years.
VOW has a Gross Margin of 18.73%. This is in the lower half of the industry: VOW underperforms 63.33% 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 | 6.99% | ||
| PM (TTM) | 4.6% | ||
| GM | 18.73% |
OM growth 3Y18.47%
OM growth 5Y4.86%
PM growth 3Y9.94%
PM growth 5Y-0.18%
GM growth 3Y2.43%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VOW is still creating some value.
Compared to 1 year ago, VOW has about the same amount of shares outstanding.
VOW has about the same amout of 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 1.07, we must say that VOW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VOW (1.07) is worse than 70.00% of its industry peers.
VOW has a debt to FCF ratio of 141.71. This is a negative value and a sign of low solvency as VOW would need 141.71 years to pay back of all of its debts.
The Debt to FCF ratio of VOW (141.71) is worse than 66.67% of its industry peers.
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 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 141.71 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.12
WACC3.78%
2.3 Liquidity
VOW has a Current Ratio of 1.14. This is a normal value and indicates that VOW is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.14, VOW is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
VOW has a Quick Ratio of 1.14. This is a bad value and indicates that VOW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VOW (0.87) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.75% over the past year.
VOW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.24% yearly.
VOW shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
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%-4.17%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%4.1%
3.2 Future
VOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.15% yearly.
The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y-9.05%
EPS Next 2Y3.94%
EPS Next 3Y13.79%
EPS Next 5Y4.15%
Revenue Next Year2.31%
Revenue Next 2Y2.71%
Revenue Next 3Y2.56%
Revenue Next 5Y4.59%
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
The Price/Earnings ratio is 3.08, which indicates a rather cheap valuation of VOW.
93.33% of the companies in the same industry are more expensive than VOW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.45. VOW is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 2.85 indicates a rather cheap valuation of VOW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOW indicates a rather cheap valuation: VOW is cheaper than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, VOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.08 | ||
| Fwd PE | 2.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
VOW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 3.49 |
4.3 Compensation for Growth
VOW's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y3.94%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.37%, VOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, VOW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.26, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.37% |
5.2 History
On average, the dividend of VOW grows each year by 37.64%, which is quite nice.
Dividend Growth(5Y)37.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.59% of the earnings are spent on dividend by VOW. This is a low number and sustainable payout ratio.
The dividend of VOW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.59%
EPS Next 2Y3.94%
EPS Next 3Y13.79%
VOLKSWAGEN AG
FRA:VOW (9/18/2024, 7:00:00 PM)
98.4
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.08 | ||
| Fwd PE | 2.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 8.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.99% | ||
| PM (TTM) | 4.6% | ||
| GM | 18.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.75%
EPS 3Y24.3%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.17%
Revenue growth 3Y13.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y