VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
Europe - FRA:VOW - DE0007664005 - Common Stock
100.2 EUR
-0.7 (-0.69%)
VOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 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. Finally VOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VOW was profitable.
VOW had a positive operating cash flow in the past year.
In the past 5 years VOW has always been profitable.
In the past 5 years VOW always reported a positive cash flow from operatings.
1.2 Ratios
VOW has a Return On Assets (1.31%) which is in line with its industry peers.
VOW has a Return On Equity of 4.57%. This is comparable to the rest of the industry: VOW outperforms 44.83% of its industry peers.
VOW's Return On Invested Capital of 3.29% is in line compared to the rest of the industry. VOW outperforms 44.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VOW is below the industry average of 6.71%.
| 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
VOW has a Profit Margin (2.58%) which is in line with its industry peers.
VOW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.49%, VOW is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
VOW's Operating Margin has improved in the last couple of years.
VOW has a Gross Margin (18.09%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOW is destroying value.
VOW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VOW has more shares outstanding
Compared to 1 year ago, VOW has a worse debt to assets ratio.
2.2 Solvency
VOW has an Altman-Z score of 1.05. This is a bad value and indicates that VOW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VOW (1.05) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.71 indicates that VOW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, VOW is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.7
WACC4.72%
2.3 Liquidity
VOW has a Current Ratio of 1.09. This is a normal value and indicates that VOW is financially healthy and should not expect problems in meeting its short term obligations.
VOW has a Current ratio of 1.09. This is in the lower half of the industry: VOW underperforms 62.07% of its industry peers.
A Quick Ratio of 0.82 indicates that VOW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, VOW is doing worse than 62.07% 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 for VOW have decreased strongly by -44.11% 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.
VOW shows a decrease in Revenue. In the last year, the revenue decreased by -0.19%.
VOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)-44.11%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-30.11%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
3.2 Future
VOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
Based on estimates for the next years, VOW will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y-18.94%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
EPS Next 5Y11.89%
Revenue Next Year0.05%
Revenue Next 2Y1.02%
Revenue Next 3Y1.63%
Revenue Next 5Y3.37%
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.
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
Based on the Price/Earnings ratio of 7.52, the valuation of VOW can be described as very cheap.
VOW's Price/Earnings ratio is rather cheap when compared to the industry. VOW is cheaper than 86.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, VOW is valued rather cheaply.
A Price/Forward Earnings ratio of 4.32 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 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, VOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 4.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.33%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
VOW has a Yearly Dividend Yield of 6.03%, which is a nice return.
VOW's Dividend Yield is a higher than the industry average which is at 5.51.
Compared to an average S&P500 Dividend Yield of 2.38, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
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
VOW pays out 52.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
VOW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.86%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
FRA:VOW (9/17/2025, 7:00:00 PM)
100.2
-0.7 (-0.69%)
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 Cap50.23B
Analysts82.86
Price Target117.22 (16.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
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)0.44%
PT rev (3m)1.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-20.86%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 4.32 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 3.14 | ||
| P/B | 0.27 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)13.33
EY13.3%
EPS(NY)23.19
Fwd EY23.14%
FCF(TTM)-3.37
FCFYN/A
OCF(TTM)31.87
OCFY31.81%
SpS646.76
BVpS364.81
TBVpS177.23
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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
WACC4.72%
ROIC/WACC0.7
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)-44.11%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-30.11%
EPS Next Y-18.94%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
EPS Next 5Y11.89%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
Revenue Next Year0.05%
Revenue Next 2Y1.02%
Revenue Next 3Y1.63%
Revenue Next 5Y3.37%
EBIT growth 1Y-21.5%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
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%