VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:VOW - DE0007664005 - Common Stock
104.9 EUR
+0.6 (+0.58%)
Overall VOW gets a fundamental rating of 3 out of 10. We evaluated VOW against 28 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 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
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
VOW has a Return On Assets (1.04%) which is in line with its industry peers.
VOW's Return On Equity of 3.63% is in line compared to the rest of the industry. VOW outperforms 46.43% of its industry peers.
VOW has a Return On Invested Capital (3.23%) which is in line with 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 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 3.63% | ||
| ROIC | 3.23% |
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 (2.04%) which is in line with its industry peers.
VOW's Profit Margin has declined in the last couple of years.
The Operating Margin of VOW (5.40%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VOW has grown nicely.
VOW's Gross Margin of 18.34% is in line compared to the rest of the industry. VOW outperforms 50.00% 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 | 5.4% | ||
| PM (TTM) | 2.04% | ||
| GM | 18.34% |
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
VOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VOW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VOW has been increased compared to 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.
Looking at the Altman-Z score, with a value of 1.06, VOW is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that VOW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, VOW perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.67
WACC4.79%
2.3 Liquidity
A Current Ratio of 1.10 indicates that VOW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.10, VOW is doing worse than 60.71% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that VOW may have some problems paying its short term obligations.
The Quick ratio of VOW (0.83) is worse than 64.29% 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 -45.72% in the last year.
The Earnings Per Share has been decreasing by -4.28% on average over the past years.
The Revenue has been growing slightly by 0.49% in the past 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)-45.72%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-139.67%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%2.33%
3.2 Future
Based on estimates for the next years, VOW will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.89% on average per year.
Based on estimates for the next years, VOW will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y-48.33%
EPS Next 2Y-1.72%
EPS Next 3Y4.95%
EPS Next 5Y11.89%
Revenue Next Year0.92%
Revenue Next 2Y1.4%
Revenue Next 3Y1.85%
Revenue Next 5Y3.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 10.54, the valuation of VOW can be described as very reasonable.
Based on the Price/Earnings ratio, VOW is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, VOW is valued rather cheaply.
A Price/Forward Earnings ratio of 4.90 indicates a rather cheap valuation of VOW.
Based on the Price/Forward Earnings ratio, VOW is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
VOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 4.9 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than VOW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.72%
EPS Next 3Y4.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.03%, VOW is a good candidate for dividend investing.
VOW's Dividend Yield is rather good when compared to the industry average which is at 3.31. VOW pays more dividend than 85.71% of the companies in the same industry.
VOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| 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 66.30% of its income as dividend. This is not a sustainable payout ratio.
VOW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.3%
EPS Next 2Y-1.72%
EPS Next 3Y4.95%
FRA:VOW (12/30/2025, 1:12:16 PM)
104.9
+0.6 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.52%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap52.59B
Revenue(TTM)326.05B
Net Income(TTM)6.66B
Analysts82.86
Price Target115.44 (10.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP66.3%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.09%
Min EPS beat(2)-118.24%
Max EPS beat(2)-11.95%
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)0.77%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)4.15%
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)-0.88%
PT rev (3m)-1.52%
EPS NQ rev (1m)25.36%
EPS NQ rev (3m)25.36%
EPS NY rev (1m)-7.85%
EPS NY rev (3m)-36.26%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 4.9 | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | 3.42 | ||
| P/B | 0.29 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 3.99 |
EPS(TTM)9.95
EY9.49%
EPS(NY)21.39
Fwd EY20.39%
FCF(TTM)-3.19
FCFYN/A
OCF(TTM)30.71
OCFY29.28%
SpS650.4
BVpS365.63
TBVpS185.21
PEG (NY)N/A
PEG (5Y)N/A
Graham Number286.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 3.63% | ||
| ROCE | 4.27% | ||
| ROIC | 3.23% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 5.19% | ||
| OM | 5.4% | ||
| PM (TTM) | 2.04% | ||
| GM | 18.34% | ||
| 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%
ROICexgc growth 3Y7.99%
ROICexgc 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 | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 46.71% | ||
| Cap/Sales | 5.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 28.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.06 |
F-Score4
WACC4.79%
ROIC/WACC0.67
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)-45.72%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-139.67%
EPS Next Y-48.33%
EPS Next 2Y-1.72%
EPS Next 3Y4.95%
EPS Next 5Y11.89%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%2.33%
Revenue Next Year0.92%
Revenue Next 2Y1.4%
Revenue Next 3Y1.85%
Revenue Next 5Y3.27%
EBIT growth 1Y-13.87%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year107.5%
EBIT Next 3Y36.06%
EBIT Next 5Y14.33%
FCF growth 1Y-323.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.65%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%
VOLKSWAGEN AG / VOW.DE FAQ
What is the fundamental rating for VOW stock?
ChartMill assigns a fundamental rating of 3 / 10 to VOW.DE.
What is the valuation status for VOW stock?
ChartMill assigns a valuation rating of 5 / 10 to VOLKSWAGEN AG (VOW.DE). This can be considered as Fairly Valued.
How profitable is VOLKSWAGEN AG (VOW.DE) stock?
VOLKSWAGEN AG (VOW.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for VOW stock?
The financial health rating of VOLKSWAGEN AG (VOW.DE) is 1 / 10.
How sustainable is the dividend of VOLKSWAGEN AG (VOW.DE) stock?
The dividend rating of VOLKSWAGEN AG (VOW.DE) is 8 / 10 and the dividend payout ratio is 66.3%.