VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
Overall VOW3 gets a fundamental rating of 3 out of 10. We evaluated VOW3 against 28 industry peers in the Automobiles industry. VOW3 may be in some trouble as it scores bad on both profitability and health. VOW3 has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
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
With a Return On Assets value of 1.45%, VOW3 is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
VOW3 has a worse Return On Equity (5.00%) than 64.29% of its industry peers.
VOW3 has a worse Return On Invested Capital (3.52%) than 64.29% of its industry peers.
VOW3 had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 6.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 5% | ||
| ROIC | 3.52% |
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 2.84%. This is in the lower half of the industry: VOW3 underperforms 60.71% of its industry peers.
In the last couple of years the Profit Margin of VOW3 has declined.
With a Operating Margin value of 5.88%, VOW3 is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
VOW3's Operating Margin has improved in the last couple of years.
The Gross Margin of VOW3 (18.55%) is comparable to the rest of the 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 | 5.88% | ||
| PM (TTM) | 2.84% | ||
| GM | 18.55% |
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.
The number of shares outstanding for VOW3 has been increased compared to 1 year ago.
VOW3 has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VOW3 is higher compared to a year ago.
2.2 Solvency
VOW3 has an Altman-Z score of 1.06. 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 1.06, VOW3 is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
The Debt to FCF ratio of VOW3 is 231.52, which is on the high side as it means it would take VOW3, 231.52 years of fcf income to pay off all of its debts.
VOW3 has a Debt to FCF ratio (231.52) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that VOW3 is somewhat dependend on debt financing.
VOW3's Debt to Equity ratio of 0.70 is fine compared to the rest of the industry. VOW3 outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 231.52 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.78
WACC4.53%
2.3 Liquidity
A Current Ratio of 1.10 indicates that VOW3 should not have too much problems paying its short term obligations.
VOW3's Current ratio of 1.10 is in line compared to the rest of the industry. VOW3 outperforms 42.86% of its industry peers.
A Quick Ratio of 0.83 indicates that VOW3 may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, VOW3 is not doing good in the industry: 60.71% 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 -38.40% in the last year.
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.
The Revenue has been growing slightly by 1.62% in the past year.
The Revenue has been growing slightly by 5.14% on average over the past years.
EPS 1Y (TTM)-38.4%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-43.98%
Revenue 1Y (TTM)1.62%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-4.86%
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 9.91% on average per year.
VOW3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.28% yearly.
EPS Next Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y9.91%
Revenue Next Year0%
Revenue Next 2Y1.59%
Revenue Next 3Y1.85%
Revenue Next 5Y3.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 5.91, the valuation of VOW3 can be described as very cheap.
78.57% 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 27.45, VOW3 is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.81, the valuation of VOW3 can be described as very cheap.
85.71% of the companies in the same industry are more expensive than VOW3, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. VOW3 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.91 | ||
| Fwd PE | 2.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VOW3 indicates a somewhat cheap valuation: VOW3 is cheaper than 67.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VOW3 indicates a somewhat cheap valuation: VOW3 is cheaper than 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.77 | ||
| EV/EBITDA | 3.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VOW3 does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VOW3's earnings are expected to grow with 18.86% in the coming years.
PEG (NY)2.44
PEG (5Y)N/A
EPS Next 2Y20.2%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
VOW3 has a Yearly Dividend Yield of 7.00%, which is a nice return.
Compared to an average industry Dividend Yield of 5.94, VOW3 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, VOW3 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
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
VOW3 pays out 62.23% of its income as dividend. This is not a sustainable payout ratio.
VOW3's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.23%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
FRA:VOW3 (7/4/2025, 5:29:55 PM)
89.82
-1.28 (-1.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.97%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.03B
Analysts82.86
Price Target112.49 (25.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP62.23%
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)0.08%
PT rev (3m)-5.54%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.91 | ||
| Fwd PE | 2.81 | ||
| P/S | 0.14 | ||
| P/FCF | 41.77 | ||
| P/OCF | 2.45 | ||
| P/B | 0.24 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 3.97 |
EPS(TTM)15.2
EY16.92%
EPS(NY)31.99
Fwd EY35.62%
FCF(TTM)2.15
FCFY2.39%
OCF(TTM)36.62
OCFY40.77%
SpS651.81
BVpS370.23
TBVpS182.6
PEG (NY)2.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 5% | ||
| ROCE | 4.67% | ||
| ROIC | 3.52% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 5.73% | ||
| OM | 5.88% | ||
| PM (TTM) | 2.84% | ||
| GM | 18.55% | ||
| FCFM | 0.33% |
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 | 0.7 | ||
| Debt/FCF | 231.52 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 54.19% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.92% | ||
| Profit Quality | 11.61% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.06 |
F-Score4
WACC4.53%
ROIC/WACC0.78
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)-38.4%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-43.98%
EPS Next Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y9.91%
Revenue 1Y (TTM)1.62%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-4.86%
Revenue Next Year0%
Revenue Next 2Y1.59%
Revenue Next 3Y1.85%
Revenue Next 5Y3.28%
EBIT growth 1Y-15.94%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
EBIT Next 5Y15.95%
FCF growth 1Y-90.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.99%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%