VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
We assign a fundamental rating of 4 out of 10 to VOW3. VOW3 was compared to 29 industry peers in the Automobiles industry. VOW3 has a bad profitability rating. Also its financial health evaluation is rather negative. VOW3 is valued correctly, but it does not seem to be growing. Finally VOW3 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VOW3 had positive earnings in the past year.
VOW3 had a positive operating cash flow in the past year.
Each year in the past 5 years VOW3 has been profitable.
Each year in the past 5 years VOW3 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VOW3 (1.94%) is worse than 66.67% of its industry peers.
VOW3's Return On Equity of 6.92% is on the low side compared to the rest of the industry. VOW3 is outperformed by 70.37% of its industry peers.
With a Return On Invested Capital value of 3.75%, VOW3 is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for VOW3 is below the industry average of 8.71%.
| 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
VOW3's Profit Margin of 3.78% is on the low side compared to the rest of the industry. VOW3 is outperformed by 62.96% of its industry peers.
In the last couple of years the Profit Margin of VOW3 has remained more or less at the same level.
With a Operating Margin value of 6.31%, VOW3 is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
VOW3's Operating Margin has improved in the last couple of years.
VOW3's Gross Margin of 18.58% is in line compared to the rest of the industry. VOW3 outperforms 48.15% of its industry peers.
In the last couple of years the Gross Margin of VOW3 has remained more or less at the same level.
| 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), VOW3 is destroying value.
VOW3 has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VOW3 has about the same amount of shares outstanding.
VOW3 has a worse debt/assets ratio than last year.
2.2 Solvency
VOW3 has an Altman-Z score of 1.08. This is a bad value and indicates that VOW3 is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.08, VOW3 is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
VOW3 has a debt to FCF ratio of 84.19. This is a negative value and a sign of low solvency as VOW3 would need 84.19 years to pay back of all of its debts.
VOW3 has a Debt to FCF ratio (84.19) which is comparable to the rest of the industry.
VOW3 has a Debt/Equity ratio of 0.75. This is a neutral value indicating VOW3 is somewhat dependend on debt financing.
VOW3's Debt to Equity ratio of 0.75 is in line compared to the rest of the industry. VOW3 outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 84.19 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.84
WACC4.45%
2.3 Liquidity
A Current Ratio of 1.15 indicates that VOW3 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, VOW3 is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that VOW3 may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, VOW3 is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.88 |
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.
The Revenue has been growing slightly by 4.24% in the past 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%-68.81%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%-0.47%
3.2 Future
VOW3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.37% yearly.
VOW3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
EPS Next Y-31.38%
EPS Next 2Y-12.41%
EPS Next 3Y4.23%
EPS Next 5Y4.37%
Revenue Next Year1.26%
Revenue Next 2Y1.51%
Revenue Next 3Y1.63%
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.
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
VOW3 is valuated cheaply with a Price/Earnings ratio of 2.89.
VOW3's Price/Earnings ratio is rather cheap when compared to the industry. VOW3 is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, VOW3 is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.76, the valuation of VOW3 can be described as very cheap.
Based on the Price/Forward Earnings ratio, VOW3 is valued cheaper than 88.89% of the companies in the same industry.
VOW3's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.89 | ||
| Fwd PE | 3.76 |
4.2 Price Multiples
70.37% of the companies in the same industry are more expensive than VOW3, based on the Enterprise Value to EBITDA ratio.
VOW3's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VOW3 is cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 3.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-12.41%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.94%, VOW3 is a good candidate for dividend investing.
VOW3's Dividend Yield is a higher than the industry average which is at 6.70.
Compared to an average S&P500 Dividend Yield of 2.28, VOW3 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.94% |
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
VOW3 pays out 47.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VOW3 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.22%
EPS Next 2Y-12.41%
EPS Next 3Y4.23%
VOLKSWAGEN AG-PREF
FRA:VOW3 (2/5/2025, 4:31:15 PM)
92.34
-2.32 (-2.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners19.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap46.29B
Analysts77.5
Price Target110.72 (19.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.94% |
Yearly Dividend39.76
Dividend Growth(5Y)37.64%
DP47.22%
Div Incr Years0
Div Non Decr Years0
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)-3.78%
PT rev (3m)-6.02%
EPS NQ rev (1m)-8.18%
EPS NQ rev (3m)-25.66%
EPS NY rev (1m)-16.3%
EPS NY rev (3m)-24.55%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-9.03%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.89 | ||
| Fwd PE | 3.76 | ||
| P/S | 0.14 | ||
| P/FCF | 15.37 | ||
| P/OCF | 2.49 | ||
| P/B | 0.26 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 3.91 |
EPS(TTM)31.98
EY34.63%
EPS(NY)24.54
Fwd EY26.57%
FCF(TTM)6.01
FCFY6.5%
OCF(TTM)37.14
OCFY40.22%
SpS647.24
BVpS353.33
TBVpS171.75
PEG (NY)N/A
PEG (5Y)0.46
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 | 1.08 |
F-Score4
WACC4.45%
ROIC/WACC0.84
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-31.38%
EPS Next 2Y-12.41%
EPS Next 3Y4.23%
EPS Next 5Y4.37%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%-0.47%
Revenue Next Year1.26%
Revenue Next 2Y1.51%
Revenue Next 3Y1.63%
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%