VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
Europe - FRA:VOW3 - DE0007664039
89.3 EUR
-2 (-2.19%)
We assign a fundamental rating of 4 out of 10 to VOW3. VOW3 was compared to 28 industry peers in the Automobiles industry. There are concerns on the financial health of VOW3 while its profitability can be described as average. VOW3 has a valuation in line with the averages, 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.
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
With a Return On Assets value of 1.31%, VOW3 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.57%, VOW3 is in line with its industry, outperforming 46.43% of the companies in the same industry.
VOW3 has a Return On Invested Capital of 3.29%. This is comparable to the rest of the industry: VOW3 outperforms 42.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOW3 is below the industry average of 7.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.57% | ||
| ROIC | 3.29% |
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
With a Profit Margin value of 2.58%, VOW3 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
VOW3's Profit Margin has declined in the last couple of years.
VOW3's Operating Margin of 5.49% is on the low side compared to the rest of the industry. VOW3 is outperformed by 67.86% of its industry peers.
VOW3's Operating Margin has improved in the last couple of years.
The Gross Margin of VOW3 (18.09%) is comparable to the rest of the industry.
VOW3's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.49% | ||
| PM (TTM) | 2.58% | ||
| GM | 18.09% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOW3 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 1.05, we must say that VOW3 is in the distress zone and has some risk of bankruptcy.
VOW3's Altman-Z score of 1.05 is in line compared to the rest of the industry. VOW3 outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that VOW3 is somewhat dependend on debt financing.
The Debt to Equity ratio of VOW3 (0.71) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.72
WACC4.54%
2.3 Liquidity
A Current Ratio of 1.09 indicates that VOW3 should not have too much problems paying its short term obligations.
VOW3 has a Current ratio (1.09) which is comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that VOW3 may have some problems paying its short term obligations.
The Quick ratio of VOW3 (0.82) is worse than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
VOW3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.11%.
Measured over the past years, VOW3 shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.28% on average per year.
Looking at the last year, VOW3 shows a decrease in Revenue. The Revenue has decreased by -0.19% in the last 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)-44.11%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-30.11%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
3.2 Future
VOW3 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
VOW3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y-18.94%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
EPS Next 5Y11.89%
Revenue Next Year0.16%
Revenue Next 2Y1.08%
Revenue Next 3Y1.62%
Revenue Next 5Y3.05%
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 6.70, which indicates a rather cheap valuation of VOW3.
Based on the Price/Earnings ratio, VOW3 is valued cheaper than 96.43% of the companies in the same industry.
VOW3 is valuated cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 3.85, the valuation of VOW3 can be described as very cheap.
VOW3's Price/Forward Earnings ratio is rather cheap when compared to the industry. VOW3 is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VOW3 to the average of the S&P500 Index (23.09), we can say VOW3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 3.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW3 is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.33%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
VOW3 has a Yearly Dividend Yield of 6.91%, which is a nice return.
VOW3's Dividend Yield is rather good when compared to the industry average which is at 5.58. VOW3 pays more dividend than 89.29% of the companies in the same industry.
VOW3's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
The dividend of VOW3 is nicely growing with an annual growth rate of 8.12%!
Dividend Growth(5Y)8.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
52.86% of the earnings are spent on dividend by VOW3. This is a bit on the high side, but may be sustainable.
The dividend of VOW3 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.86%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
FRA:VOW3 (10/22/2025, 5:36:15 PM)
89.3
-2 (-2.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.58%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap44.77B
Revenue(TTM)324.22B
Net Income(TTM)8.35B
Analysts82.86
Price Target113.47 (27.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP52.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)-2.06%
PT rev (3m)0.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.95%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 3.85 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 2.8 | ||
| P/B | 0.24 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)13.33
EY14.93%
EPS(NY)23.19
Fwd EY25.96%
FCF(TTM)-3.37
FCFYN/A
OCF(TTM)31.87
OCFY35.69%
SpS646.76
BVpS364.81
TBVpS177.23
PEG (NY)N/A
PEG (5Y)N/A
Graham Number330.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 4.57% | ||
| ROCE | 4.36% | ||
| ROIC | 3.29% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 5.34% | ||
| OM | 5.49% | ||
| PM (TTM) | 2.58% | ||
| GM | 18.09% | ||
| 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-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 53.79% | ||
| Cap/Sales | 5.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.05 |
F-Score3
WACC4.54%
ROIC/WACC0.72
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)-44.11%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-30.11%
EPS Next Y-18.94%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
EPS Next 5Y11.89%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
Revenue Next Year0.16%
Revenue Next 2Y1.08%
Revenue Next 3Y1.62%
Revenue Next 5Y3.05%
EBIT growth 1Y-21.5%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year125.06%
EBIT Next 3Y37.04%
EBIT Next 5Y14.33%
FCF growth 1Y-140.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.24%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%