Volkswagen (VOW) AI Stock Analysis

• Market Cap: €46.08B
• Dividend Yield: 6.21%
• Average Volume (3M): 60.78K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.36
• 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: €116.83
• Price Target Upside: 15.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €101.00 ▼(-0.39% 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.

Positive Factors

Negative Factors

Volkswagen Business Overview & Revenue Model

Company Description

Volkswagen 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 Money

Volkswagen 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 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	324.22B	324.66B	322.28B	279.05B	250.20B	222.88B
Gross Profit	58.65B	61.03B	62.03B	52.57B	47.06B	39.13B
EBITDA	47.09B	48.22B	49.84B	50.01B	46.69B	36.35B
Net Income	8.97B	11.35B	16.53B	15.46B	15.38B	8.87B
Balance Sheet
Total Assets	637.68B	632.90B	600.34B	564.01B	528.61B	497.11B
Cash, Cash Equivalents and Short-Term Investments	62.91B	73.45B	74.91B	70.77B	66.88B	59.27B
Total Debt	188.15B	196.52B	193.97B	178.44B	183.37B	174.31B
Total Liabilities	439.67B	436.17B	410.43B	385.69B	382.45B	368.33B
Stockholders Equity	182.88B	182.29B	175.69B	165.38B	144.45B	127.05B
Cash Flow
Free Cash Flow	-11.10B	-10.29B	-6.44B	5.83B	20.14B	7.16B
Operating Cash Flow	15.98B	17.15B	19.36B	28.50B	38.63B	24.90B
Investing Cash Flow	-30.54B	-31.57B	-19.81B	-41.82B	-26.13B	-22.69B
Financing Cash Flow	74.00M	11.14B	16.01B	4.22B	-7.75B	7.64B

Volkswagen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 101.4 is above the 20-day moving average (MA) of 94.09, above the 50-day MA of 95.41, and above the 200-day MA of 95.55, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 71.88 is Negative, neither overbought nor oversold. The STOCH value of 94.75 is Negative, 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
8TRA	76 Outperform	€13.60B	7.64	10.20%	5.86%	-7.11%	-30.83%
BMW	75 Outperform	$52.47B	7.81	7.35%	4.84%	-8.40%	-11.54%
MBG	74 Outperform	$57.23B	9.17	6.56%	7.19%	-7.08%	-38.11%
VOW	70 Outperform	€46.08B	6.96	4.00%	6.21%	0.49%	-45.70%
DTG	65 Neutral	€27.00B	11.10	10.04%	5.31%	-10.34%	-31.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PAH3	55 Neutral	€10.62B	-0.49	-47.46%	5.12%	-54.23%	-543.31%