VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
Overall VOW3 gets a fundamental rating of 4 out of 10. We evaluated VOW3 against 34 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
VOW3 had positive earnings in the past year.
In the past year VOW3 had a positive cash flow from operations.
VOW3 had positive earnings in each of the past 5 years.
VOW3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VOW3 has a worse Return On Assets (1.94%) than 64.71% of its industry peers.
With a Return On Equity value of 6.92%, VOW3 is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.75%, VOW3 is doing worse than 61.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VOW3 is below the industry average of 9.03%.
| 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
Looking at the Profit Margin, with a value of 3.78%, VOW3 is in line with its industry, outperforming 44.12% of the companies in the same industry.
In the last couple of years the Profit Margin of VOW3 has remained more or less at the same level.
The Operating Margin of VOW3 (6.31%) is worse than 67.65% of its industry peers.
In the last couple of years the Operating Margin of VOW3 has grown nicely.
With a Gross Margin value of 18.58%, VOW3 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOW3 is destroying value.
Compared to 1 year ago, VOW3 has about the same amount of shares outstanding.
VOW3 has about the same amout of shares outstanding than it did 5 years ago.
VOW3 has a worse debt/assets ratio than last year.
2.2 Solvency
VOW3 has an Altman-Z score of 1.09. 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 1.09, VOW3 is not doing good in the industry: 64.71% 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.
With a Debt to FCF ratio value of 84.19, VOW3 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
VOW3 has a Debt/Equity ratio of 0.75. This is a neutral value indicating VOW3 is somewhat dependend on debt financing.
The Debt to Equity ratio of VOW3 (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 84.19 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.79
WACC4.74%
2.3 Liquidity
VOW3 has a Current Ratio of 1.15. This is a normal value and indicates that VOW3 is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VOW3 (1.15) is comparable to the rest of the industry.
VOW3 has a Quick Ratio of 1.15. This is a bad value and indicates that VOW3 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, VOW3 is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.75% over the past year.
Measured over the past 5 years, VOW3 shows a small growth in Earnings Per Share. The EPS has been growing by 6.24% on average per year.
The Revenue has been growing slightly by 4.24% in the past year.
Measured over the past years, VOW3 shows a small growth in Revenue. The Revenue has been growing by 6.44% on average per year.
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.
Based on estimates for the next years, VOW3 will show a small growth in Revenue. The Revenue will grow by 2.88% on average per year.
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
The Price/Earnings ratio is 3.38, which indicates a rather cheap valuation of VOW3.
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.
VOW3 is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
VOW3 is valuated cheaply with a Price/Forward Earnings ratio of 4.43.
Based on the Price/Forward Earnings ratio, VOW3 is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. VOW3 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.38 | ||
| Fwd PE | 4.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW3 is valued a bit cheaper than 70.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VOW3 is valued a bit cheaper than 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.01 | ||
| EV/EBITDA | 4.05 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-12.59%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
VOW3 has a Yearly Dividend Yield of 8.03%, which is a nice return.
VOW3's Dividend Yield is rather good when compared to the industry average which is at 6.67. VOW3 pays more dividend than 82.35% of the companies in the same industry.
VOW3's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
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
47.22% of the earnings are spent on dividend by VOW3. This is a bit on the high side, but may be sustainable.
VOW3'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:VOW3 (3/7/2025, 5:36:15 PM)
108.15
-1.55 (-1.41%)
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 Cap54.22B
Analysts80
Price Target119.09 (10.12%)
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 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)7.56%
PT rev (3m)-0.31%
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 | 3.38 | ||
| Fwd PE | 4.43 | ||
| P/S | 0.17 | ||
| P/FCF | 18.01 | ||
| P/OCF | 2.91 | ||
| P/B | 0.31 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 4.05 |
EPS(TTM)31.98
EY29.57%
EPS(NY)24.43
Fwd EY22.59%
FCF(TTM)6.01
FCFY5.55%
OCF(TTM)37.14
OCFY34.34%
SpS647.24
BVpS353.33
TBVpS171.75
PEG (NY)N/A
PEG (5Y)0.54
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
WACC4.74%
ROIC/WACC0.79
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%