VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:VOW - DE0007664005 - Common Stock
107.7 EUR
+0.7 (+0.65%)
We assign a fundamental rating of 4 out of 10 to VOW. VOW was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally VOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VOW had positive earnings in the past year.
VOW had a positive operating cash flow in the past year.
In the past 5 years VOW has always been profitable.
Each year in the past 5 years VOW had a positive operating cash flow.
1.2 Ratios
VOW's Return On Assets of 1.04% is in line compared to the rest of the industry. VOW outperforms 41.38% of its industry peers.
VOW has a Return On Equity (3.63%) which is in line with its industry peers.
VOW's Return On Invested Capital of 3.23% is in line compared to the rest of the industry. VOW outperforms 41.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOW is in line with the industry average of 6.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 3.63% | ||
| ROIC | 3.23% |
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 (2.04%) which is comparable to the rest of the industry.
VOW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.40%, VOW is in line with its industry, outperforming 41.38% of the companies in the same industry.
VOW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.34%, VOW is in line with its industry, outperforming 44.83% of the companies in the same industry.
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 | 5.4% | ||
| PM (TTM) | 2.04% | ||
| GM | 18.34% |
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 VOW is destroying value.
Compared to 1 year ago, VOW has more shares outstanding
Compared to 5 years ago, VOW has more shares outstanding
VOW has a worse debt/assets ratio than last year.
2.2 Solvency
VOW has an Altman-Z score of 1.06. This is a bad value and indicates that VOW is not financially healthy and even has some risk of bankruptcy.
VOW has a Altman-Z score (1.06) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.73 indicates that VOW is somewhat dependend on debt financing.
VOW's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. VOW outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.67
WACC4.83%
2.3 Liquidity
A Current Ratio of 1.10 indicates that VOW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, VOW perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that VOW may have some problems paying its short term obligations.
VOW has a Quick ratio of 0.83. This is in the lower half of the industry: VOW underperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
VOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.72%.
Measured over the past years, VOW 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 0.49% in the past year.
VOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)-45.72%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-139.67%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%2.33%
3.2 Future
VOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
Based on estimates for the next years, VOW will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y-47.43%
EPS Next 2Y-1.98%
EPS Next 3Y4.71%
EPS Next 5Y11.89%
Revenue Next Year1.08%
Revenue Next 2Y1.47%
Revenue Next 3Y1.91%
Revenue Next 5Y3.27%
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
With a Price/Earnings ratio of 10.82, the valuation of VOW can be described as very reasonable.
72.41% of the companies in the same industry are more expensive than VOW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.49, VOW is valued rather cheaply.
VOW is valuated cheaply with a Price/Forward Earnings ratio of 5.06.
Based on the Price/Forward Earnings ratio, VOW is valued cheaper than 82.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. VOW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 5.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.98%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
VOW has a Yearly Dividend Yield of 5.89%, which is a nice return.
VOW's Dividend Yield is a higher than the industry average which is at 4.79.
VOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
5.2 History
On average, the dividend of VOW grows each year by 8.12%, which is quite nice.
Dividend Growth(5Y)8.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
66.30% of the earnings are spent on dividend by VOW. This is not a sustainable payout ratio.
VOW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.3%
EPS Next 2Y-1.98%
EPS Next 3Y4.71%
FRA:VOW (12/5/2025, 7:00:00 PM)
107.7
+0.7 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.52%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap53.99B
Revenue(TTM)326.05B
Net Income(TTM)6.66B
Analysts82.86
Price Target115.44 (7.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP66.3%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.09%
Min EPS beat(2)-118.24%
Max EPS beat(2)-11.95%
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)0.77%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)4.15%
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)1.8%
PT rev (3m)-1.52%
EPS NQ rev (1m)25.36%
EPS NQ rev (3m)25.36%
EPS NY rev (1m)-6.24%
EPS NY rev (3m)-35.15%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 5.06 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | 3.51 | ||
| P/B | 0.29 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 4.02 |
EPS(TTM)9.95
EY9.24%
EPS(NY)21.27
Fwd EY19.75%
FCF(TTM)-3.19
FCFYN/A
OCF(TTM)30.71
OCFY28.52%
SpS650.4
BVpS365.63
TBVpS185.21
PEG (NY)N/A
PEG (5Y)N/A
Graham Number286.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 3.63% | ||
| ROCE | 4.27% | ||
| ROIC | 3.23% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 5.19% | ||
| OM | 5.4% | ||
| PM (TTM) | 2.04% | ||
| GM | 18.34% | ||
| 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-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 46.71% | ||
| Cap/Sales | 5.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 28.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.06 |
F-Score4
WACC4.83%
ROIC/WACC0.67
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)-45.72%
EPS 3Y-10.28%
EPS 5Y-4.28%
EPS Q2Q%-139.67%
EPS Next Y-47.43%
EPS Next 2Y-1.98%
EPS Next 3Y4.71%
EPS Next 5Y11.89%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%2.33%
Revenue Next Year1.08%
Revenue Next 2Y1.47%
Revenue Next 3Y1.91%
Revenue Next 5Y3.27%
EBIT growth 1Y-13.87%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year117.45%
EBIT Next 3Y38.5%
EBIT Next 5Y14.33%
FCF growth 1Y-323.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.65%
OCF growth 3Y-23.71%
OCF growth 5Y-0.94%
VOLKSWAGEN AG / VOW.DE FAQ
What is the fundamental rating for VOW stock?
ChartMill assigns a fundamental rating of 3 / 10 to VOW.DE.
What is the valuation status for VOW stock?
ChartMill assigns a valuation rating of 5 / 10 to VOLKSWAGEN AG (VOW.DE). This can be considered as Fairly Valued.
How profitable is VOLKSWAGEN AG (VOW.DE) stock?
VOLKSWAGEN AG (VOW.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for VOW stock?
The financial health rating of VOLKSWAGEN AG (VOW.DE) is 1 / 10.
How sustainable is the dividend of VOLKSWAGEN AG (VOW.DE) stock?
The dividend rating of VOLKSWAGEN AG (VOW.DE) is 7 / 10 and the dividend payout ratio is 66.3%.