VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
FRA:VOW - Deutsche Boerse Ag - DE0007664005 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to VOW. VOW was compared to 28 industry peers in the Automobiles industry. VOW has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year VOW had a positive cash flow from operations.
Each year in the past 5 years VOW has been profitable.
In the past 5 years VOW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VOW (1.45%) is worse than 64.29% of its industry peers.
The Return On Equity of VOW (5.00%) is worse than 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.52%, VOW is doing worse than 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VOW is in line with the industry average of 6.37%.
| 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
The Profit Margin of VOW (2.84%) is worse than 60.71% of its industry peers.
In the last couple of years the Profit Margin of VOW has declined.
The Operating Margin of VOW (5.88%) is worse than 67.86% of its industry peers.
VOW's Operating Margin has improved in the last couple of years.
The Gross Margin of VOW (18.55%) is comparable to the rest of the 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 | 5.88% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VOW is destroying value.
VOW has more shares outstanding than it did 1 year ago.
VOW has more shares outstanding than it did 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 worse than 60.71% of its industry peers.
VOW has a debt to FCF ratio of 231.52. This is a negative value and a sign of low solvency as VOW would need 231.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 231.52, VOW perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that VOW is somewhat dependend on debt financing.
The Debt to Equity ratio of VOW (0.70) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 231.52 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.76
WACC4.64%
2.3 Liquidity
VOW has a Current Ratio of 1.10. This is a normal value and indicates that VOW is financially healthy and should not expect problems in meeting its short term obligations.
VOW has a Current ratio (1.10) which is comparable to the rest of the 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 67.86% 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 -38.40%.
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.
VOW shows a small growth in Revenue. In the last year, the Revenue has grown by 1.62%.
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)-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
VOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
The Revenue is expected to grow by 3.28% on average over the next years.
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 6.33, the valuation of VOW can be described as very cheap.
Based on the Price/Earnings ratio, VOW is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, VOW is valued rather cheaply.
VOW is valuated cheaply with a Price/Forward Earnings ratio of 3.01.
82.14% of the companies in the same industry are more expensive than VOW, based on the Price/Forward Earnings ratio.
VOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 3.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW is valued a bit cheaper than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VOW is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.71 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VOW's earnings are expected to grow with 18.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y20.2%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.47%, VOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.24, 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
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
62.23% 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.
DP62.23%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
FRA:VOW (7/15/2025, 5:29:45 PM)
96.15
+0.65 (+0.68%)
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 Cap48.20B
Analysts82.86
Price Target114.42 (19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.47% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP62.23%
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)-0.66%
PT rev (3m)-5.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.77%
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 | 6.33 | ||
| Fwd PE | 3.01 | ||
| P/S | 0.15 | ||
| P/FCF | 44.71 | ||
| P/OCF | 2.63 | ||
| P/B | 0.26 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 4.01 |
EPS(TTM)15.2
EY15.81%
EPS(NY)31.99
Fwd EY33.27%
FCF(TTM)2.15
FCFY2.24%
OCF(TTM)36.62
OCFY38.09%
SpS651.81
BVpS370.23
TBVpS182.6
PEG (NY)2.61
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
WACC4.64%
ROIC/WACC0.76
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%