VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
FRA:VOW - Deutsche Boerse Ag - DE0007664005 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to VOW. VOW was compared to 32 industry peers in the Automobiles industry. There are concerns on the financial health of VOW while its profitability can be described as average. 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
In the past year VOW was profitable.
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
With a Return On Assets value of 1.94%, VOW is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
VOW's Return On Equity of 6.92% is on the low side compared to the rest of the industry. VOW is outperformed by 67.65% of its industry peers.
VOW has a worse Return On Invested Capital (3.75%) than 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VOW is significantly below the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 6.92% | ||
| ROIC | 3.75% |
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
VOW has a Profit Margin of 3.78%. This is comparable to the rest of the industry: VOW outperforms 41.18% of its industry peers.
In the last couple of years the Profit Margin of VOW has remained more or less at the same level.
VOW has a Operating Margin of 6.31%. This is in the lower half of the industry: VOW underperforms 70.59% of its industry peers.
In the last couple of years the Operating Margin of VOW has grown nicely.
VOW has a Gross Margin of 18.58%. This is comparable to the rest of the industry: VOW outperforms 47.06% of its industry peers.
VOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.31% | ||
| PM (TTM) | 3.78% | ||
| GM | 18.58% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VOW is destroying value.
The number of shares outstanding for VOW remains at a similar level compared to 1 year ago.
VOW has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VOW is higher compared to a year ago.
2.2 Solvency
VOW has an Altman-Z score of 1.09. This is a bad value and indicates that VOW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, VOW is doing worse than 61.76% of the companies in the same industry.
VOW has a debt to FCF ratio of 84.19. This is a negative value and a sign of low solvency as VOW would need 84.19 years to pay back of all of its debts.
VOW has a Debt to FCF ratio (84.19) which is in line with its industry peers.
VOW has a Debt/Equity ratio of 0.75. This is a neutral value indicating VOW is somewhat dependend on debt financing.
VOW has a Debt to Equity ratio of 0.75. This is comparable to the rest of the industry: VOW outperforms 55.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 84.19 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.78
WACC4.79%
2.3 Liquidity
A Current Ratio of 1.15 indicates that VOW should not have too much problems paying its short term obligations.
VOW's Current ratio of 1.15 is in line compared to the rest of the industry. VOW outperforms 50.00% of its industry peers.
A Quick Ratio of 0.88 indicates that VOW may have some problems paying its short term obligations.
VOW has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.88 |
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%.
VOW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.24% yearly.
Looking at the last year, VOW shows a small growth in Revenue. The Revenue has grown by 4.24% in the last year.
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%-68.81%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%-0.47%
3.2 Future
The Earnings Per Share is expected to grow by 4.37% on average over the next years.
VOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
EPS Next Y-30.76%
EPS Next 2Y-12.59%
EPS Next 3Y4.42%
EPS Next 5Y4.37%
Revenue Next Year1.65%
Revenue Next 2Y1.62%
Revenue Next 3Y1.51%
Revenue Next 5Y2.88%
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
With a Price/Earnings ratio of 3.47, the valuation of VOW can be described as very cheap.
97.06% of the companies in the same industry are more expensive than VOW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VOW to the average of the S&P500 Index (29.35), we can say VOW is valued rather cheaply.
VOW is valuated cheaply with a Price/Forward Earnings ratio of 4.54.
Based on the Price/Forward Earnings ratio, VOW is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VOW to the average of the S&P500 Index (22.10), we can say VOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.47 | ||
| Fwd PE | 4.54 |
4.2 Price Multiples
VOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VOW is cheaper than 67.65% of the companies in the same industry.
VOW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.48 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-12.59%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
VOW has a Yearly Dividend Yield of 8.03%, which is a nice return.
Compared to an average industry Dividend Yield of 6.74, VOW pays a better dividend. On top of this VOW pays more dividend than 85.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
5.2 History
The dividend of VOW is nicely growing with an annual growth rate of 37.64%!
Dividend Growth(5Y)37.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
47.22% of the earnings are spent on dividend by VOW. This is a bit on the high side, but may be sustainable.
VOW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.22%
EPS Next 2Y-12.59%
EPS Next 3Y4.42%
FRA:VOW (3/7/2025, 7:00:00 PM)
111
-1.1 (-0.98%)
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 Cap55.64B
Analysts80
Price Target122.52 (10.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
Yearly Dividend39.76
Dividend Growth(5Y)37.64%
DP47.22%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.77%
Min EPS beat(2)-64.97%
Max EPS beat(2)-20.56%
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)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.75%
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)6.82%
PT rev (3m)-0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.18%
EPS NY rev (1m)0.9%
EPS NY rev (3m)-15.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.47 | ||
| Fwd PE | 4.54 | ||
| P/S | 0.17 | ||
| P/FCF | 18.48 | ||
| P/OCF | 2.99 | ||
| P/B | 0.31 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 4.08 |
EPS(TTM)31.98
EY28.81%
EPS(NY)24.43
Fwd EY22.01%
FCF(TTM)6.01
FCFY5.41%
OCF(TTM)37.14
OCFY33.46%
SpS647.24
BVpS353.33
TBVpS171.75
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 6.92% | ||
| ROCE | 5.03% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.65% | ||
| ROICexgc | 6.44% | ||
| OM | 6.31% | ||
| PM (TTM) | 3.78% | ||
| GM | 18.58% | ||
| FCFM | 0.93% |
ROA(3y)2.7%
ROA(5y)2.5%
ROE(3y)9.46%
ROE(5y)9.18%
ROIC(3y)4.09%
ROIC(5y)3.74%
ROICexc(3y)5.13%
ROICexc(5y)4.66%
ROICexgc(3y)7.09%
ROICexgc(5y)6.37%
ROCE(3y)5.48%
ROCE(5y)5.02%
ROICexcg growth 3Y29.14%
ROICexcg growth 5Y5.92%
ROICexc growth 3Y27.25%
ROICexc growth 5Y5.56%
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%
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 84.19 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 53.38% | ||
| Cap/Sales | 4.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.46% | ||
| Profit Quality | 24.57% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.09 |
F-Score4
WACC4.79%
ROIC/WACC0.78
Cap/Depr(3y)45.86%
Cap/Depr(5y)47.78%
Cap/Sales(3y)4.48%
Cap/Sales(5y)4.83%
Profit Quality(3y)107.44%
Profit Quality(5y)102.79%
High Growth Momentum
Growth
EPS 1Y (TTM)7.75%
EPS 3Y24.3%
EPS 5Y6.24%
EPS Q2Q%-68.81%
EPS Next Y-30.76%
EPS Next 2Y-12.59%
EPS Next 3Y4.42%
EPS Next 5Y4.37%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%-0.47%
Revenue Next Year1.65%
Revenue Next 2Y1.62%
Revenue Next 3Y1.51%
Revenue Next 5Y2.88%
EBIT growth 1Y-11.43%
EBIT growth 3Y33.96%
EBIT growth 5Y11.61%
EBIT Next Year100.91%
EBIT Next 3Y31.75%
EBIT Next 5Y15.29%
FCF growth 1Y-87.8%
FCF growth 3Y-29.87%
FCF growth 5YN/A
OCF growth 1Y-49.14%
OCF growth 3Y-8.06%
OCF growth 5Y21.62%