VOLKSWAGEN AG-PREF (VOW3.DE)

DE0007664039

92.62  +0.3 (+0.32%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to VOW3. VOW3 was compared to 32 industry peers in the Automobiles industry. While VOW3 is still in line with the averages on profitability rating, there are concerns on its financial health. VOW3 is valued correctly, but it does not seem to be growing. VOW3 also has an excellent dividend rating.



4

1. Profitability

1.1 Basic Checks

In the past year VOW3 was profitable.
In the past year VOW3 had a positive cash flow from operations.
In the past 5 years VOW3 has always been profitable.
Each year in the past 5 years VOW3 had a positive operating cash flow.

1.2 Ratios

VOW3 has a Return On Assets of 2.37%. This is in the lower half of the industry: VOW3 underperforms 66.67% of its industry peers.
VOW3 has a Return On Equity of 8.39%. This is in the lower half of the industry: VOW3 underperforms 76.67% of its industry peers.
VOW3 has a Return On Invested Capital of 4.21%. This is in the lower half of the industry: VOW3 underperforms 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOW3 is significantly below the industry average of 9.51%.
The 3 year average ROIC (4.09%) for VOW3 is below the current ROIC(4.21%), indicating increased profibility in the last year.
Industry RankSector 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

VOW3 has a Profit Margin (4.60%) which is comparable to the rest of the industry.
VOW3's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 6.99%, VOW3 is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of VOW3 has grown nicely.
VOW3 has a worse Gross Margin (18.73%) than 60.00% of its industry peers.
VOW3's Gross Margin has been stable in the last couple of years.
Industry RankSector 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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VOW3 is still creating some value.
VOW3 has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VOW3 remains at a similar level compared to 5 years ago.
The debt/assets ratio for VOW3 is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.07, we must say that VOW3 is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, VOW3 is doing worse than 73.33% of the companies in the same industry.
The Debt to FCF ratio of VOW3 is 141.71, which is on the high side as it means it would take VOW3, 141.71 years of fcf income to pay off all of its debts.
VOW3 has a worse Debt to FCF ratio (141.71) than 63.33% of its industry peers.
VOW3 has a Debt/Equity ratio of 0.71. This is a neutral value indicating VOW3 is somewhat dependend on debt financing.
VOW3 has a Debt to Equity ratio of 0.71. This is comparable to the rest of the industry: VOW3 outperforms 53.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 141.71
Altman-Z 1.07
ROIC/WACC1.14
WACC3.71%

2.3 Liquidity

A Current Ratio of 1.14 indicates that VOW3 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, VOW3 perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
VOW3 has a Quick Ratio of 1.14. This is a bad value and indicates that VOW3 is not financially healthy enough and could expect problems in meeting its short term obligations.
VOW3's Quick ratio of 0.87 is on the low side compared to the rest of the industry. VOW3 is outperformed by 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 0.87

3

3. Growth

3.1 Past

VOW3 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.75%.
VOW3 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, VOW3 shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
The Revenue has been growing slightly by 6.44% on average over the past years.
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

VOW3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.15% yearly.
Based on estimates for the next years, VOW3 will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
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.
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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 2.90 indicates a rather cheap valuation of VOW3.
Based on the Price/Earnings ratio, VOW3 is valued cheaper than 96.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.45. VOW3 is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 2.68, the valuation of VOW3 can be described as very cheap.
Based on the Price/Forward Earnings ratio, VOW3 is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VOW3 to the average of the S&P500 Index (21.99), we can say VOW3 is valued rather cheaply.
Industry RankSector Rank
PE 2.9
Fwd PE 2.68

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VOW3 is valued a bit cheaper than 66.67% of the companies in the same industry.
VOW3's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 15.18
EV/EBITDA 3.46

4.3 Compensation for Growth

VOW3'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)0.46
EPS Next 2Y3.94%
EPS Next 3Y13.79%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.37%, VOW3 is a good candidate for dividend investing.
VOW3's Dividend Yield is a higher than the industry average which is at 6.66.
VOW3's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
Industry RankSector Rank
Dividend Yield 9.37%

5.2 History

The dividend of VOW3 is nicely growing with an annual growth rate of 37.64%!
Dividend Growth(5Y)37.64%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

39.59% of the earnings are spent on dividend by VOW3. This is a low number and sustainable payout ratio.
The dividend of VOW3 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-PREF

FRA:VOW3 (9/18/2024, 5:36:15 PM)

92.62

+0.3 (+0.32%)

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 Cap27.33B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 RankSector Rank
PE 2.9
Fwd PE 2.68
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)0.46
Profitability
Industry RankSector 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 RankSector 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