VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
We assign a fundamental rating of 3 out of 10 to VOW3. VOW3 was compared to 33 industry peers in the Automobiles industry. VOW3 has a bad profitability rating. Also its financial health evaluation is rather negative. VOW3 has a valuation in line with the averages, but it does not seem to be growing. VOW3 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VOW3 was profitable.
In the past year VOW3 had a positive cash flow from operations.
VOW3 had positive earnings in each of the past 5 years.
VOW3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.69%, VOW3 is doing worse than 60.61% of the companies in the same industry.
With a Return On Equity value of 5.88%, VOW3 is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
VOW3's Return On Invested Capital of 3.80% is on the low side compared to the rest of the industry. VOW3 is outperformed by 60.61% of its industry peers.
VOW3 had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 7.78%.
| 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
Looking at the Profit Margin, with a value of 3.30%, VOW3 is in line with its industry, outperforming 42.42% of the companies in the same industry.
VOW3's Profit Margin has declined in the last couple of years.
The Operating Margin of VOW3 (6.45%) is worse than 63.64% of its industry peers.
VOW3's Operating Margin has improved in the last couple of years.
VOW3 has a Gross Margin (18.90%) which is in line with its industry peers.
VOW3's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOW3 is destroying value.
Compared to 1 year ago, VOW3 has about the same amount of shares outstanding.
Compared to 5 years ago, VOW3 has about the same amount of shares outstanding.
The debt/assets ratio for VOW3 is higher compared to a year ago.
2.2 Solvency
VOW3 has an Altman-Z score of 1.08. This is a bad value and indicates that VOW3 is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VOW3 (1.08) is worse than 69.70% of its industry peers.
VOW3 has a Debt/Equity ratio of 0.74. This is a neutral value indicating VOW3 is somewhat dependend on debt financing.
VOW3 has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.81
WACC4.67%
2.3 Liquidity
VOW3 has a Current Ratio of 1.13. This is a normal value and indicates that VOW3 is financially healthy and should not expect problems in meeting its short term obligations.
VOW3 has a Current ratio (1.13) which is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that VOW3 may have some problems paying its short term obligations.
VOW3 has a Quick ratio (0.87) which is in line with 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.
VOW3 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.24% yearly.
VOW3 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.49%.
Measured over the past years, VOW3 shows a small growth in Revenue. The Revenue has been growing by 6.44% on average per year.
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
Based on estimates for the next years, VOW3 will show a small growth in Earnings Per Share. The EPS will grow by 1.53% on average per year.
Based on estimates for the next years, VOW3 will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
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
Based on the Price/Earnings ratio of 6.34, the valuation of VOW3 can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of VOW3 indicates a rather cheap valuation: VOW3 is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, VOW3 is valued rather cheaply.
A Price/Forward Earnings ratio of 4.25 indicates a rather cheap valuation of VOW3.
87.88% of the companies in the same industry are more expensive than VOW3, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VOW3 to the average of the S&P500 Index (21.94), we can say VOW3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 4.25 |
4.2 Price Multiples
VOW3's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VOW3 is cheaper than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.8 |
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 5.97%, VOW3 is a good candidate for dividend investing.
VOW3's Dividend Yield is a higher than the industry average which is at 5.78.
VOW3's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
5.2 History
On average, the dividend of VOW3 grows each year by 14.79%, which is quite nice.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VOW3 pays out 53.90% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VOW3 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:VOW3 (5/22/2025, 5:36:15 PM)
96.4
-1.28 (-1.31%)
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 Cap48.33B
Analysts82.86
Price Target112.4 (16.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend19.58
Dividend Growth(5Y)14.79%
DP53.9%
Div Incr Years0
Div Non Decr Years0
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)-5.12%
PT rev (3m)1.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 4.25 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 2.82 | ||
| P/B | 0.27 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 2.8 |
EPS(TTM)15.2
EY15.77%
EPS(NY)22.68
Fwd EY23.53%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)34.22
OCFY35.49%
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 Year150.71%
EBIT Next 3Y41.04%
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%