Volkswagen (VOW) AI Stock Analysis

• Market Cap: €52.44B
• Dividend Yield: 6%
• Average Volume (3M): 60.78K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.29
• Revenue Growth: 0.49%
• EPS Growth: -45.70%
• Country: DE
• Employees: 639,608
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.96
• Shares Outstanding: 295,089,800
• 10 Day Avg. Volume: 57,261
• 30 Day Avg. Volume: 60,782
• PEG Ratio: -0.12
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -4.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €113.75
• Price Target Upside: 8.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €101.00 ▼(-3.81% Downside)

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.

Volkswagen Business Overview & Revenue Model

Company Description

Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates in four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; and light commercial vehicles; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles. It provides its products under the Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, and Bugatti brands. Volkswagen AG was founded in 1937 and is based in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

How the Company Makes Money

Volkswagen generates revenue primarily through the sale of vehicles, which includes both new and used cars. The company also earns income from financing and leasing services offered to customers and dealerships. Additionally, Volkswagen has a substantial presence in the aftermarket parts and service market, providing maintenance and repair services that contribute to its earnings. Strategic partnerships, such as collaborations with tech companies for electric vehicle development and autonomous driving technology, enhance its innovation and market competitiveness, further supporting its revenue streams. Furthermore, the company benefits from economies of scale in production and a strong global distribution network, which helps optimize costs and increase profit margins.

Volkswagen Financial Statement Overview

Summary

Volkswagen shows solid revenue growth and a stable gross profit margin, highlighting efficient operations. However, profitability metrics like net profit and EBIT margins have faced pressure. The balance sheet reflects disciplined leverage but relies heavily on liabilities. Cash flow from operations remains strong, but negative free cash flow due to significant capital investments could pose risks. Overall, Volkswagen is financially stable but faces challenges in profitability and free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	326.05B	324.66B	322.28B	279.05B	250.20B	222.88B
Gross Profit	59.80B	61.03B	62.03B	52.57B	47.06B	39.13B
EBITDA	47.65B	48.22B	49.84B	50.01B	46.69B	36.35B
Net Income	7.12B	11.35B	16.53B	15.46B	15.38B	8.87B
Balance Sheet
Total Assets	638.78B	632.90B	600.34B	564.01B	528.61B	497.11B
Cash, Cash Equivalents and Short-Term Investments	65.55B	73.45B	74.91B	70.77B	66.88B	59.27B
Total Debt	271.47B	196.52B	193.97B	178.44B	183.37B	174.31B
Total Liabilities	455.27B	436.17B	410.43B	385.69B	382.45B	368.33B
Stockholders Equity	169.09B	182.29B	175.69B	165.38B	144.45B	127.05B
Cash Flow
Free Cash Flow	-10.87B	-10.29B	-6.44B	5.83B	20.14B	7.16B
Operating Cash Flow	15.39B	17.15B	19.36B	28.50B	38.63B	24.90B
Investing Cash Flow	-30.50B	-31.57B	-19.81B	-41.82B	-26.13B	-22.69B
Financing Cash Flow	1.21B	11.14B	16.01B	4.22B	-7.75B	7.64B

Volkswagen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VOW, the sentiment is Positive. The current price of 105 is above the 20-day moving average (MA) of 104.41, above the 50-day MA of 98.29, and above the 200-day MA of 96.20, indicating a bullish trend. The MACD of 2.45 indicates Positive momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 17.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VOW.

Volkswagen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBG	77 Outperform	€57.62B	9.24	6.56%	7.19%	-7.08%	-38.11%
BMW	71 Outperform	€55.51B	8.21	7.35%	4.59%	-8.40%	-11.54%
VOW	70 Outperform	€52.44B	7.91	4.00%	6.00%	0.49%	-45.70%
8TRA	68 Neutral	€15.19B	8.54	10.20%	5.60%	-7.11%	-30.83%
DTG	68 Neutral	€28.66B	13.04	10.04%	5.08%	-10.34%	-31.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PAH3	55 Neutral	€12.25B	-0.58	-45.93%	4.78%	-39.68%	-659.81%