VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:VOW3 - DE0007664039
102.95 EUR
+0.65 (+0.64%)
Taking everything into account, VOW3 scores 4 out of 10 in our fundamental rating. 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally VOW3 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year VOW3 was profitable.
- VOW3 had a positive operating cash flow in the past year.
- In the past 5 years VOW3 has always been profitable.
- In the past 5 years VOW3 always reported a positive cash flow from operatings.
1.2 Ratios
- VOW3 has a Return On Assets (1.04%) which is in line with its industry peers.
- VOW3 has a Return On Equity (3.63%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.23%, VOW3 is in line with its industry, outperforming 53.13% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for VOW3 is in line with the industry average of 6.07%.
| 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
- VOW3 has a Profit Margin of 2.04%. This is comparable to the rest of the industry: VOW3 outperforms 46.88% of its industry peers.
- VOW3's Profit Margin has declined in the last couple of years.
- VOW3 has a Operating Margin (5.40%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of VOW3 has grown nicely.
- VOW3's Gross Margin of 18.34% is in line compared to the rest of the industry. VOW3 outperforms 56.25% of its industry peers.
- VOW3's Gross Margin has been stable in the last couple of years.
| 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
- VOW3 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- VOW3 has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for VOW3 has been increased compared to 5 years ago.
- Compared to 1 year ago, VOW3 has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.06, 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 1.06, VOW3 is in line with its industry, outperforming 46.88% of the companies in the same industry.
- A Debt/Equity ratio of 0.73 indicates that VOW3 is somewhat dependend on debt financing.
- VOW3 has a Debt to Equity ratio of 0.73. This is comparable to the rest of the industry: VOW3 outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.68
WACC4.78%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that VOW3 should not have too much problems paying its short term obligations.
- VOW3 has a Current ratio of 1.10. This is comparable to the rest of the industry: VOW3 outperforms 43.75% of its industry peers.
- VOW3 has a Quick Ratio of 1.10. This is a bad value and indicates that VOW3 is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.83, VOW3 is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The earnings per share for VOW3 have decreased strongly by -45.72% in the last year.
- VOW3 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.28% yearly.
- The Revenue has been growing slightly by 0.49% in the past year.
- Measured over the past years, VOW3 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, VOW3 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.38% on average per year.
- The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y-48.52%
EPS Next 2Y-1.72%
EPS Next 3Y4.95%
EPS Next 5Y10.38%
Revenue Next Year0.92%
Revenue Next 2Y1.4%
Revenue Next 3Y1.85%
Revenue Next 5Y3.15%
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
- The Price/Earnings ratio is 10.35, which indicates a very decent valuation of VOW3.
- 71.88% of the companies in the same industry are more expensive than VOW3, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, VOW3 is valued rather cheaply.
- VOW3 is valuated cheaply with a Price/Forward Earnings ratio of 4.81.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VOW3 indicates a rather cheap valuation: VOW3 is cheaper than 87.50% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of VOW3 to the average of the S&P500 Index (25.95), we can say VOW3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 4.81 |
4.2 Price Multiples
- 78.13% of the companies in the same industry are more expensive than VOW3, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.97 |
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 5.98%, VOW3 is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.74, VOW3 pays a bit more dividend than its industry peers.
- VOW3's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
5.2 History
- On average, the dividend of VOW3 grows each year by 8.12%, which is quite nice.
Dividend Growth(5Y)8.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 66.30% of the earnings are spent on dividend by VOW3. This is not a sustainable payout ratio.
- The dividend of VOW3 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.3%
EPS Next 2Y-1.72%
EPS Next 3Y4.95%
VOLKSWAGEN AG-PREF / VOW3.DE FAQ
Can you provide the ChartMill fundamental rating for VOLKSWAGEN AG-PREF?
ChartMill assigns a fundamental rating of 4 / 10 to VOW3.DE.
What is the valuation status for VOW3 stock?
ChartMill assigns a valuation rating of 5 / 10 to VOLKSWAGEN AG-PREF (VOW3.DE). This can be considered as Fairly Valued.
What is the profitability of VOW3 stock?
VOLKSWAGEN AG-PREF (VOW3.DE) has a profitability rating of 5 / 10.
What are the PE and PB ratios of VOLKSWAGEN AG-PREF (VOW3.DE) stock?
The Price/Earnings (PE) ratio for VOLKSWAGEN AG-PREF (VOW3.DE) is 10.35 and the Price/Book (PB) ratio is 0.28.
Is the dividend of VOLKSWAGEN AG-PREF sustainable?
The dividend rating of VOLKSWAGEN AG-PREF (VOW3.DE) is 7 / 10 and the dividend payout ratio is 66.3%.