VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
FRA:VOW - DE0007664005 - Common Stock
104.25 EUR
+0.25 (+0.24%)
We assign a fundamental rating of 3 out of 10 to VOW. VOW was compared to 31 industry peers in the Automobiles industry. VOW has a medium profitability rating, but doesn't score so well on its financial health evaluation. VOW has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
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's Return On Assets of 1.31% is in line compared to the rest of the industry. VOW outperforms 48.39% of its industry peers.
VOW has a Return On Equity of 4.57%. This is comparable to the rest of the industry: VOW outperforms 45.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.29%, VOW is in line with its industry, outperforming 45.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VOW is below the industry average of 6.86%.
| 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
The Profit Margin of VOW (2.58%) is comparable to the rest of the industry.
VOW's Profit Margin has declined in the last couple of years.
VOW has a Operating Margin of 5.49%. This is in the lower half of the industry: VOW underperforms 64.52% of its industry peers.
VOW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.09%, VOW is doing worse than 61.29% of the companies in the same industry.
VOW'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VOW is destroying value.
Compared to 1 year ago, VOW has more shares outstanding
The number of shares outstanding for VOW has been increased compared to 5 years ago.
Compared to 1 year ago, VOW has a worse debt to assets ratio.
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.
The Altman-Z score of VOW (1.06) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.71 indicates that VOW is somewhat dependend on debt financing.
VOW has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.69
WACC4.78%
2.3 Liquidity
A Current Ratio of 1.09 indicates that VOW should not have too much problems paying its short term obligations.
VOW has a Current ratio of 1.09. This is in the lower half of the industry: VOW underperforms 61.29% of its industry peers.
VOW has a Quick Ratio of 1.09. This is a bad value and indicates that VOW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.82, VOW is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
VOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.11%.
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.
Looking at the last year, VOW shows a decrease in Revenue. The Revenue has decreased by -0.19% in the last year.
Measured over the past years, VOW 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
The Earnings Per Share is expected to grow by 11.86% on average over the next years. This is quite good.
Based on estimates for the next years, VOW will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y-18.94%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
EPS Next 5Y11.86%
Revenue Next Year0.2%
Revenue Next 2Y1.13%
Revenue Next 3Y1.64%
Revenue Next 5Y3.35%
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
Based on the Price/Earnings ratio of 7.82, the valuation of VOW can be described as very cheap.
VOW's Price/Earnings ratio is rather cheap when compared to the industry. VOW is cheaper than 87.10% of the companies in the same industry.
VOW is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.50, the valuation of VOW can be described as very cheap.
Based on the Price/Forward Earnings ratio, VOW is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
VOW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 4.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.28 |
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
With a Yearly Dividend Yield of 6.09%, VOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.48, VOW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.09% |
5.2 History
The dividend of VOW is nicely growing with an annual growth rate of 8.12%!
Dividend Growth(5Y)8.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VOW pays out 52.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VOW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.86%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
FRA:VOW (8/26/2025, 3:42:04 PM)
104.25
+0.25 (+0.24%)
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 Cap52.26B
Analysts82.86
Price Target117.22 (12.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.09% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP52.86%
Div Incr Years1
Div Non Decr Years1
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)2.22%
PT rev (3m)1.77%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-20.86%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)-3.95%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 4.5 | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | 3.27 | ||
| P/B | 0.29 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 4.28 |
EPS(TTM)13.33
EY12.79%
EPS(NY)23.19
Fwd EY22.24%
FCF(TTM)-3.37
FCFYN/A
OCF(TTM)31.87
OCFY30.57%
SpS646.76
BVpS364.81
TBVpS177.23
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 1.06 |
F-Score3
WACC4.78%
ROIC/WACC0.69
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 5Y11.86%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
Revenue Next Year0.2%
Revenue Next 2Y1.13%
Revenue Next 3Y1.64%
Revenue Next 5Y3.35%
EBIT growth 1Y-21.5%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
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%