VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
Taking everything into account, VOW3 scores 4 out of 10 in our fundamental rating. VOW3 was compared to 32 industry peers in the Automobiles industry. There are concerns on the financial health of VOW3 while its profitability can be described as average. VOW3 is valued correctly, but it does not seem to be growing. Finally VOW3 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VOW3 had positive earnings in the past year.
VOW3 had a positive operating cash flow in the past year.
In the past 5 years VOW3 has always been profitable.
VOW3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VOW3 has a Return On Assets (1.31%) which is comparable to the rest of the industry.
VOW3 has a Return On Equity of 4.57%. This is comparable to the rest of the industry: VOW3 outperforms 50.00% of its industry peers.
VOW3's Return On Invested Capital of 3.29% is in line compared to the rest of the industry. VOW3 outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VOW3 is in line with the industry average of 6.40%.
| 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
With a Profit Margin value of 2.58%, VOW3 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of VOW3 has declined.
VOW3 has a Operating Margin of 5.49%. This is in the lower half of the industry: VOW3 underperforms 62.50% of its industry peers.
VOW3's Operating Margin has improved in the last couple of years.
VOW3 has a Gross Margin (18.09%) 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 | 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
VOW3 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VOW3 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VOW3 has more shares outstanding
VOW3 has a worse debt/assets ratio than last year.
2.2 Solvency
VOW3 has an Altman-Z score of 1.05. This is a bad value and indicates that VOW3 is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, VOW3 is in line with its industry, outperforming 53.13% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that VOW3 is somewhat dependend on debt financing.
VOW3 has a better Debt to Equity ratio (0.71) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.73
WACC4.51%
2.3 Liquidity
VOW3 has a Current Ratio of 1.09. This is a normal value and indicates that VOW3 is financially healthy and should not expect problems in meeting its short term obligations.
VOW3's Current ratio of 1.09 is in line compared to the rest of the industry. VOW3 outperforms 40.63% of its industry peers.
VOW3 has a Quick Ratio of 1.09. This is a bad value and indicates that VOW3 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.82, VOW3 is not doing good in the industry: 65.63% 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
The earnings per share for VOW3 have decreased strongly by -44.11% in the last year.
VOW3 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.
Measured over the past years, VOW3 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
VOW3 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
Based on estimates for the next years, VOW3 will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
EPS Next Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y9.91%
Revenue Next Year0.47%
Revenue Next 2Y1.3%
Revenue Next 3Y1.81%
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.
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
A Price/Earnings ratio of 6.69 indicates a rather cheap valuation of VOW3.
Based on the Price/Earnings ratio, VOW3 is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VOW3 to the average of the S&P500 Index (26.82), we can say VOW3 is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.79, the valuation of VOW3 can be described as very cheap.
Based on the Price/Forward Earnings ratio, VOW3 is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VOW3 to the average of the S&P500 Index (36.21), we can say VOW3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 2.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOW3 is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VOW3's earnings are expected to grow with 18.86% in the coming years.
PEG (NY)2.76
PEG (5Y)N/A
EPS Next 2Y20.2%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
VOW3 has a Yearly Dividend Yield of 6.70%, which is a nice return.
Compared to an average industry Dividend Yield of 5.67, VOW3 pays a bit more dividend than its industry peers.
VOW3's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
5.2 History
On average, the dividend of VOW3 grows each year by 8.12%, which is quite nice.
Dividend Growth(5Y)8.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VOW3 pays out 52.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VOW3 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.86%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
FRA:VOW3 (8/1/2025, 5:36:15 PM)
89.16
-2.96 (-3.21%)
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 Cap44.70B
Analysts82.86
Price Target111.5 (25.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP52.86%
Div Incr Years0
Div Non Decr Years0
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)-0.88%
PT rev (3m)-1%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-5.34%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 2.79 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 2.8 | ||
| P/B | 0.24 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 4.14 |
EPS(TTM)13.33
EY14.95%
EPS(NY)31.99
Fwd EY35.88%
FCF(TTM)-3.37
FCFYN/A
OCF(TTM)31.87
OCFY35.75%
SpS646.76
BVpS364.81
TBVpS177.23
PEG (NY)2.76
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
WACC4.51%
ROIC/WACC0.73
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 Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y9.91%
Revenue 1Y (TTM)-0.19%
Revenue growth 3Y9.07%
Revenue growth 5Y5.14%
Sales Q2Q%-3.04%
Revenue Next Year0.47%
Revenue Next 2Y1.3%
Revenue Next 3Y1.81%
Revenue Next 5Y3.28%
EBIT growth 1Y-21.5%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
EBIT Next 5Y15.95%
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%