VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
FRA:VOW - Deutsche Boerse Ag - DE0007664005 - Common Stock - Currency: EUR
VOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Automobiles industry. While VOW is still in line with the averages on profitability rating, there are concerns on its financial health. VOW is valued correctly, but it does not seem to be growing. VOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VOW had positive earnings in the past year.
In the past year VOW had a positive cash flow from operations.
Each year in the past 5 years VOW has been profitable.
Each year in the past 5 years VOW had a positive operating cash flow.
1.2 Ratios
VOW has a Return On Assets (1.69%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.88%, VOW is in line with its industry, outperforming 40.63% of the companies in the same industry.
VOW's Return On Invested Capital of 3.80% is in line compared to the rest of the industry. VOW outperforms 40.63% of its industry peers.
VOW had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 7.52%.
| 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
VOW has a Profit Margin (3.30%) which is in line with its industry peers.
VOW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.45%, VOW is in line with its industry, outperforming 40.63% of the companies in the same industry.
In the last couple of years the Operating Margin of VOW has grown nicely.
VOW's Gross Margin of 18.90% is in line compared to the rest of the industry. VOW outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of VOW 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
VOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VOW has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VOW remains at a similar level compared to 5 years ago.
The debt/assets ratio for VOW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that VOW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.08, VOW is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
VOW has a Debt/Equity ratio of 0.74. This is a neutral value indicating VOW is somewhat dependend on debt financing.
VOW's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. VOW outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.81
WACC4.67%
2.3 Liquidity
A Current Ratio of 1.13 indicates that VOW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.13, VOW is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
VOW has a Quick Ratio of 1.13. This is a bad value and indicates that VOW is not financially healthy enough and could expect problems in meeting its short term obligations.
VOW's Quick ratio of 0.87 is on the low side compared to the rest of the industry. VOW is outperformed by 62.50% of 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.
The Earnings Per Share has been growing slightly by 6.24% on average over the past years.
Looking at the last year, VOW shows a quite strong growth in Revenue. The Revenue has grown by 15.49% in the last year.
VOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.44% yearly.
EPS 1Y (TTM)7.75%
EPS 3Y24.3%
EPS 5Y6.24%
EPS Q2Q%N/A
Revenue 1Y (TTM)15.49%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%-4.86%
3.2 Future
The Earnings Per Share is expected to grow by 1.53% on average over the next years.
The Revenue is expected to grow by 3.33% on average over the next years.
EPS Next Y-30.76%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
EPS Next 5Y1.53%
Revenue Next Year1.7%
Revenue Next 2Y0.84%
Revenue Next 3Y1.62%
Revenue Next 5Y3.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.39, which indicates a rather cheap valuation of VOW.
Compared to the rest of the industry, the Price/Earnings ratio of VOW indicates a somewhat cheap valuation: VOW is cheaper than 78.13% of the companies listed in the same industry.
VOW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
The Price/Forward Earnings ratio is 4.28, which indicates a rather cheap valuation of VOW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOW indicates a somewhat cheap valuation: VOW is cheaper than 78.13% of the companies listed in the same industry.
VOW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 4.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.31%, VOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.90, VOW pays a bit more dividend than its industry peers.
VOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
5.2 History
The dividend of VOW is nicely growing with an annual growth rate of 14.79%!
Dividend Growth(5Y)14.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
53.90% of the earnings are spent on dividend by VOW. This is a bit on the high side, but may be sustainable.
The dividend of VOW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.9%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
FRA:VOW (5/30/2025, 5:29:49 PM)
97.15
-0.55 (-0.56%)
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 Cap48.70B
Analysts82.86
Price Target115.18 (18.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly Dividend19.58
Dividend Growth(5Y)14.79%
DP53.9%
Div Incr Years1
Div Non Decr Years1
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)-5.05%
PT rev (3m)-5.99%
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)-2.28%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 4.28 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 2.84 | ||
| P/B | 0.27 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 2.81 |
EPS(TTM)15.2
EY15.65%
EPS(NY)22.68
Fwd EY23.34%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)34.22
OCFY35.22%
SpS647.63
BVpS363.64
TBVpS177.46
PEG (NY)N/A
PEG (5Y)1.02
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
WACC4.67%
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%N/A
EPS Next Y-30.76%
EPS Next 2Y-15.79%
EPS Next 3Y0.01%
EPS Next 5Y1.53%
Revenue 1Y (TTM)15.49%
Revenue growth 3Y13.08%
Revenue growth 5Y6.44%
Sales Q2Q%-4.86%
Revenue Next Year1.7%
Revenue Next 2Y0.84%
Revenue Next 3Y1.62%
Revenue Next 5Y3.33%
EBIT growth 1Y-12.4%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
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%