VOLKSWAGEN AG (VOW.DE) Stock Fundamental Analysis
Europe - FRA:VOW - DE0007664005 - Common Stock
90.6 EUR
-0.25 (-0.28%)
VOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 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.
In the past 5 years VOW always reported a positive cash flow from operatings.
1.2 Ratios
VOW has a Return On Assets (1.31%) which is comparable to the rest of the industry.
VOW's Return On Equity of 4.57% is in line compared to the rest of the industry. VOW outperforms 44.83% 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 41.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VOW is below the industry average of 7.07%.
| 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
VOW has a Profit Margin (2.58%) which is in line with its industry peers.
VOW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.49%, VOW is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
VOW's Operating Margin has improved in the last couple of years.
VOW has a Gross Margin (18.09%) which 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 | 5.49% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOW is destroying value.
VOW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VOW has more shares outstanding
The debt/assets ratio for VOW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that VOW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VOW (1.05) is comparable to the rest of the industry.
VOW has a Debt/Equity ratio of 0.71. This is a neutral value indicating VOW is somewhat dependend on debt financing.
VOW has a Debt to Equity ratio of 0.71. This is comparable to the rest of the industry: VOW outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.72
WACC4.57%
2.3 Liquidity
VOW has a Current Ratio of 1.09. This is a normal value and indicates that VOW is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.09, VOW perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
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.
VOW's Quick ratio of 0.82 is on the low side compared to the rest of the industry. VOW is outperformed by 65.52% of its industry peers.
| 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%.
VOW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.28% yearly.
The Revenue has decreased by -0.19% 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)-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
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 3.05% on average per year.
EPS Next Y-18.94%
EPS Next 2Y2.33%
EPS Next 3Y5.78%
EPS Next 5Y11.89%
Revenue Next Year0.16%
Revenue Next 2Y1.08%
Revenue Next 3Y1.62%
Revenue Next 5Y3.05%
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
VOW is valuated cheaply with a Price/Earnings ratio of 6.80.
Based on the Price/Earnings ratio, VOW is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.02, VOW is valued rather cheaply.
A Price/Forward Earnings ratio of 3.91 indicates a rather cheap valuation of VOW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOW indicates a rather cheap valuation: VOW is cheaper than 96.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, VOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 3.91 |
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 | 4.15 |
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 6.80%, VOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.15, VOW pays a better dividend. On top of this VOW pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, VOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
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 (10/13/2025, 5:29:46 PM)
90.6
-0.25 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners18.58%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.42B
Analysts82.86
Price Target115.95 (27.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
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)-1.09%
PT rev (3m)1.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.95%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 3.91 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 2.84 | ||
| P/B | 0.25 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 4.15 |
EPS(TTM)13.33
EY14.71%
EPS(NY)23.19
Fwd EY25.59%
FCF(TTM)-3.37
FCFYN/A
OCF(TTM)31.87
OCFY35.18%
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 | 1.05 |
F-Score3
WACC4.57%
ROIC/WACC0.72
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 5Y11.89%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
Revenue Next Year0.16%
Revenue Next 2Y1.08%
Revenue Next 3Y1.62%
Revenue Next 5Y3.05%
EBIT growth 1Y-21.5%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year125.06%
EBIT Next 3Y37.04%
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%