VOLKSWAGEN AG-PREF (VOW3.DE) Stock Fundamental Analysis
FRA:VOW3 - Deutsche Boerse Ag - DE0007664039 - Currency: EUR
VOW3 gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 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. Finally VOW3 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VOW3 had positive earnings in the past year.
In the past year VOW3 had a positive cash flow from operations.
In the past 5 years VOW3 has always been profitable.
In the past 5 years VOW3 always reported a positive cash flow from operatings.
1.2 Ratios
VOW3's Return On Assets of 1.45% is on the low side compared to the rest of the industry. VOW3 is outperformed by 66.67% of its industry peers.
VOW3's Return On Equity of 5.00% is on the low side compared to the rest of the industry. VOW3 is outperformed by 66.67% of its industry peers.
The Return On Invested Capital of VOW3 (3.52%) is worse than 66.67% 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 6.82%.
| 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 VOW3 (2.84%) is worse than 63.33% of its industry peers.
VOW3's Profit Margin has declined in the last couple of years.
VOW3 has a worse Operating Margin (5.88%) than 66.67% of its industry peers.
VOW3's Operating Margin has improved in the last couple of years.
VOW3's Gross Margin of 18.55% is in line compared to the rest of the industry. VOW3 outperforms 46.67% of its industry peers.
In the last couple of years the Gross Margin of VOW3 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), VOW3 is destroying value.
Compared to 1 year ago, VOW3 has more shares outstanding
VOW3 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VOW3 has a worse debt to assets ratio.
2.2 Solvency
VOW3 has an Altman-Z score of 1.06. 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 1.06, VOW3 is doing worse than 66.67% of the companies in the same industry.
VOW3 has a debt to FCF ratio of 231.52. This is a negative value and a sign of low solvency as VOW3 would need 231.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 231.52, VOW3 perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that VOW3 is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.70, VOW3 is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 231.52 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.78
WACC4.52%
2.3 Liquidity
VOW3 has a Current Ratio of 1.10. This is a normal value and indicates that VOW3 is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.10, VOW3 is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that VOW3 may have some problems paying its short term obligations.
VOW3's Quick ratio of 0.83 is on the low side compared to the rest of the industry. VOW3 is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for VOW3 have decreased strongly by -38.40% in the last year.
Measured over the past years, VOW3 shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.28% on average per year.
The Revenue has been growing slightly by 1.62% in the past year.
The Revenue has been growing slightly by 5.14% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
VOW3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y2.43%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
EPS Next 5Y10.3%
Revenue Next Year0%
Revenue Next 2Y1.59%
Revenue Next 3Y1.85%
Revenue Next 5Y3.65%
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 accelerating.
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
The Price/Earnings ratio is 5.84, which indicates a rather cheap valuation of VOW3.
Based on the Price/Earnings ratio, VOW3 is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
VOW3's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 2.78, which indicates a rather cheap valuation of VOW3.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOW3 indicates a rather cheap valuation: VOW3 is cheaper than 86.67% of the companies listed in the same industry.
VOW3 is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 2.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VOW3 indicates a somewhat cheap valuation: VOW3 is cheaper than 70.00% of the companies listed in the same industry.
VOW3's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.31 | ||
| EV/EBITDA | 3.96 |
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)2.41
PEG (5Y)N/A
EPS Next 2Y20.2%
EPS Next 3Y18.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.65%, VOW3 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.64, 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 | 6.65% |
5.2 History
The dividend of VOW3 is nicely growing with an annual growth rate of 8.12%!
Dividend Growth(5Y)8.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VOW3 pays out 62.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VOW3 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.23%
EPS Next 2Y20.2%
EPS Next 3Y18.86%
FRA:VOW3 (6/13/2025, 5:36:15 PM)
88.84
-2.04 (-2.24%)
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 Cap44.54B
Analysts82.86
Price Target113.24 (27.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
Yearly Dividend14.51
Dividend Growth(5Y)8.12%
DP62.23%
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)0.54%
PT rev (3m)-4.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.18%
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 | 5.84 | ||
| Fwd PE | 2.78 | ||
| P/S | 0.14 | ||
| P/FCF | 41.31 | ||
| P/OCF | 2.43 | ||
| P/B | 0.24 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)15.2
EY17.11%
EPS(NY)31.99
Fwd EY36.01%
FCF(TTM)2.15
FCFY2.42%
OCF(TTM)36.62
OCFY41.22%
SpS651.81
BVpS370.23
TBVpS182.6
PEG (NY)2.41
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
WACC4.52%
ROIC/WACC0.78
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 5Y10.3%
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 5Y3.65%
EBIT growth 1Y-15.94%
EBIT growth 3Y12.01%
EBIT growth 5Y6.93%
EBIT Next Year141.92%
EBIT Next 3Y37.27%
EBIT Next 5Y16.37%
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%