VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
We assign a fundamental rating of 3 out of 10 to VOW3. VOW3 was compared to 28 industry peers in the Automobiles industry. VOW3 may be in some trouble as it scores bad on both profitability and health. 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
In the past year VOW3 was profitable.
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
VOW3 has a worse Return On Assets (1.69%) than 67.86% of its industry peers.
VOW3 has a worse Return On Equity (5.88%) than 67.86% of its industry peers.
With a Return On Invested Capital value of 3.80%, VOW3 is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for VOW3 is below the industry average of 7.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.88% | ||
| ROIC | 3.8% |
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 3.30%, VOW3 is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VOW3 has declined.
VOW3 has a Operating Margin of 6.45%. This is in the lower half of the industry: VOW3 underperforms 67.86% of its industry peers.
In the last couple of years the Operating Margin of VOW3 has grown nicely.
VOW3 has a Gross Margin (18.90%) which is in line with 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 | 6.45% | ||
| PM (TTM) | 3.3% | ||
| GM | 18.9% |
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.
Compared to 1 year ago, VOW3 has about the same amount of shares outstanding.
The number of shares outstanding for VOW3 remains at a similar level compared to 5 years ago.
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.
The Altman-Z score of VOW3 (1.08) is worse than 71.43% of its industry peers.
VOW3 has a Debt/Equity ratio of 0.74. This is a neutral value indicating VOW3 is somewhat dependend on debt financing.
VOW3 has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: VOW3 outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.81
WACC4.71%
2.3 Liquidity
VOW3 has a Current Ratio of 1.13. This is a normal value and indicates that VOW3 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.13, VOW3 is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
VOW3 has a Quick Ratio of 1.13. 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 has a Quick ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.87 |
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 0.74% 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%-32.98%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%0.22%
3.2 Future
Based on estimates for the next years, VOW3 will show a small growth in Earnings Per Share. The EPS will grow by 1.53% on average per year.
VOW3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y-30.76%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
EPS Next 5Y1.53%
Revenue Next Year1.65%
Revenue Next 2Y1.62%
Revenue Next 3Y1.51%
Revenue Next 5Y3.33%
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
VOW3 is valuated cheaply with a Price/Earnings ratio of 3.06.
Compared to the rest of the industry, the Price/Earnings ratio of VOW3 indicates a rather cheap valuation: VOW3 is cheaper than 96.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VOW3 to the average of the S&P500 Index (28.79), we can say VOW3 is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.31, 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 82.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, VOW3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.06 | ||
| Fwd PE | 4.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW3 is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
5. Dividend
5.1 Amount
VOW3 has a Yearly Dividend Yield of 6.89%, which is a nice return.
VOW3's Dividend Yield is a higher than the industry average which is at 7.56.
Compared to an average S&P500 Dividend Yield of 2.51, VOW3 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
5.2 History
On average, the dividend of VOW3 grows each year by 14.79%, which is quite nice.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VOW3 pays out 53.90% of its income as dividend. 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.
DP53.9%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
FRA:VOW3 (4/25/2025, 5:36:15 PM)
97.76
+1.26 (+1.31%)
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 Cap49.01B
Analysts80
Price Target118.47 (21.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
Yearly Dividend19.58
Dividend Growth(5Y)14.79%
DP53.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.68%
Min EPS beat(2)-64.97%
Max EPS beat(2)-16.4%
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)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)2.02%
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)-0.52%
PT rev (3m)2.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-7.18%
EPS NY rev (3m)-24.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.06 | ||
| Fwd PE | 4.31 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 2.86 | ||
| P/B | 0.27 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 2.79 |
EPS(TTM)31.98
EY32.71%
EPS(NY)22.68
Fwd EY23.2%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)34.22
OCFY35%
SpS647.63
BVpS363.64
TBVpS177.46
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.88% | ||
| ROCE | 5.04% | ||
| ROIC | 3.8% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 6.7% | ||
| OM | 6.45% | ||
| PM (TTM) | 3.3% | ||
| GM | 18.9% | ||
| 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%
ROICexcg growth 3Y7.99%
ROICexcg 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-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 54.88% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 32.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.08 |
F-Score4
WACC4.71%
ROIC/WACC0.81
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)7.75%
EPS 3Y24.3%
EPS 5Y6.24%
EPS Q2Q%-32.98%
EPS Next Y-30.76%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
EPS Next 5Y1.53%
Revenue 1Y (TTM)0.74%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%0.22%
Revenue Next Year1.65%
Revenue Next 2Y1.62%
Revenue Next 3Y1.51%
Revenue Next 5Y3.33%
EBIT growth 1Y-12.4%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year150.71%
EBIT Next 3Y41.04%
EBIT Next 5Y17.67%
FCF growth 1Y-101.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.37%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%