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Volkswagen (DE:VOW)
XETRA:VOW
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Volkswagen (VOW) AI Stock Analysis

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DE:VOW

Volkswagen

(XETRA:VOW)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
€101.00
▲(6.43% Upside)
Volkswagen's stock score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield suggesting potential undervaluation. However, technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold indicators. Financial performance is stable but challenged by profitability pressures and negative free cash flow, which tempers the overall score.
Positive Factors
Negative Factors

Volkswagen (VOW) vs. iShares MSCI Germany ETF (EWG)

Volkswagen Business Overview & Revenue Model

Company DescriptionVolkswagen AG (VOW) is a leading global automotive manufacturer headquartered in Wolfsburg, Germany. The company operates in various sectors, including passenger cars, commercial vehicles, and financial services. Volkswagen is known for its diverse portfolio of brands, which includes iconic names such as Volkswagen, Audi, Porsche, Škoda, and SEAT, among others. The company focuses on producing a wide range of vehicles, from economical compact cars to luxury performance vehicles, and is increasingly investing in electric mobility and sustainable transportation solutions.
How the Company Makes MoneyVolkswagen generates revenue primarily through the sale of vehicles, which constitutes the bulk of its income. The company sells a wide array of passenger cars and commercial vehicles across various markets globally. Additionally, Volkswagen has a significant revenue stream from financial services, which includes vehicle financing, leasing, and insurance products offered to customers and dealers. The company also benefits from partnerships with technology firms for the development of electric vehicles and autonomous driving technologies. Moreover, Volkswagen's investment in electric mobility, including the launch of its ID series of electric vehicles, positions it to capture a growing market segment, further enhancing its revenue potential.

Volkswagen Financial Statement Overview

Summary
Volkswagen demonstrates solid revenue growth and stable gross profit margins, indicating efficient operations. However, profitability metrics like net profit and EBIT margins have faced pressure. The balance sheet shows disciplined leverage but relies heavily on liabilities. Strong operating cash flow is offset by negative free cash flow due to significant capital investments, posing potential risks.
Income Statement
82
Very Positive
Volkswagen has demonstrated solid revenue growth with a notable increase from €222.89 billion in 2020 to €324.66 billion in 2024. The gross profit margin has been stable around 18-19%, indicating efficient cost management. However, net profit margin decreased from 5.15% in 2023 to 3.50% in 2024, suggesting pressure on profitability. The EBIT and EBITDA margins show a slight decline, reflecting some operational challenges.
Balance Sheet
78
Positive
The company maintains a reasonable debt-to-equity ratio of approximately 1.08, showing disciplined leverage. Stockholders' equity has grown consistently, reflecting a robust equity position. However, the equity ratio is around 28.8%, indicating a relatively high reliance on liabilities. Return on equity has declined slightly, which may be a concern for investors.
Cash Flow
74
Positive
Operating cash flow remains strong, although it has decreased from €28.50 billion in 2022 to €17.15 billion in 2024. Free cash flow turned negative in recent years, indicating heavy capital expenditures. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio is concerning due to negative free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue324.22B324.66B322.28B279.05B250.20B222.88B
Gross Profit58.65B61.03B62.03B52.57B47.06B39.13B
EBITDA47.09B48.22B49.84B50.01B46.69B36.35B
Net Income8.97B11.35B16.53B15.46B15.38B8.87B
Balance Sheet
Total Assets637.68B632.90B600.34B564.01B528.61B497.11B
Cash, Cash Equivalents and Short-Term Investments62.91B73.45B74.91B70.77B66.88B59.27B
Total Debt188.15B196.52B193.97B178.44B183.37B174.31B
Total Liabilities439.67B436.17B410.43B385.69B382.45B368.33B
Stockholders Equity182.88B182.29B175.69B165.38B144.45B127.05B
Cash Flow
Free Cash Flow-11.10B-10.29B-6.44B5.83B20.14B7.16B
Operating Cash Flow15.98B17.15B19.36B28.50B38.63B24.90B
Investing Cash Flow-30.54B-31.57B-19.81B-41.82B-26.13B-22.69B
Financing Cash Flow74.00M11.14B16.01B4.22B-7.75B7.64B

Volkswagen Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price94.90
Price Trends
50DMA
99.12
Negative
100DMA
96.65
Negative
200DMA
94.82
Positive
Market Momentum
MACD
-1.90
Positive
RSI
41.48
Neutral
STOCH
46.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VOW, the sentiment is Neutral. The current price of 94.9 is below the 20-day moving average (MA) of 98.26, below the 50-day MA of 99.12, and above the 200-day MA of 94.82, indicating a neutral trend. The MACD of -1.90 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:VOW.

Volkswagen Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€52.14B7.8211.02%7.82%-7.14%-43.43%
72
Outperform
€13.67B6.2715.72%6.18%-2.98%-14.55%
70
Outperform
€46.99B5.635.01%6.68%-0.19%-44.09%
65
Neutral
€50.93B9.246.25%4.93%-11.92%-43.64%
63
Neutral
€27.58B11.3411.73%5.35%-6.83%-32.20%
55
Neutral
€10.33B-57.02%5.66%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:VOW
Volkswagen
94.90
4.37
4.83%
DE:MBG
Mercedes-Benz Group
55.01
2.81
5.38%
DE:BMW
Bayerische Motoren Werke Aktiengesellschaft
87.14
14.71
20.31%
DE:PAH3
Porsche Automobil Holding
34.21
-2.88
-7.76%
DE:8TRA
TRATON SE
27.52
0.68
2.53%
DE:DTG
Daimler Truck Holding AG
35.51
3.25
10.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 23, 2025