Volkswagen (VOW3) AI Stock Analysis

• Market Cap: €45.65B
• Dividend Yield: 7.03%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.30
• Revenue Growth: -0.19%
• EPS Growth: -44.09%
• Country: DE
• Employees: 639,608
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 4.34
• Shares Outstanding: 206,205,440
• 10 Day Avg. Volume: 909,278
• 30 Day Avg. Volume: 1,074,958
• 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: €114.89
• Price Target Upside: 26.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: €102.00 ▲(12.68% Upside)

Volkswagen's stock is supported by strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, which could pose short-term risks. The company's high debt levels and negative Free Cash Flow also require careful management.

Positive Factors

Negative Factors

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, KODA, 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 and automotive products. Its core revenue streams include the sale of passenger cars and commercial vehicles, parts and accessories, and financial services associated with vehicle financing and leasing. The company also benefits from its extensive global dealership network and aftersales services. In recent years, Volkswagen has increasingly focused on electric vehicles, which are expected to contribute significantly to future revenues as consumer demand for EVs rises. Additionally, partnerships with technology companies and investments in charging infrastructure and mobility services are enhancing its revenue potential in the evolving automotive landscape.

Volkswagen Financial Statement Overview

Summary

Volkswagen demonstrates strong revenue growth and operational efficiency, with solid profitability margins. The balance sheet is stable, though high debt levels require continuous monitoring. Cash flow management is crucial, with a focus on converting operational success into positive Free Cash Flow. Overall, the company is on a positive trajectory but needs to manage capital expenditures effectively.

Income Statement

Volkswagen has shown consistent revenue growth over the years, with a notable increase from 2022 to 2023. The Gross Profit Margin is strong, hovering around 18-19%, indicating efficient cost management. However, the Net Profit Margin has slightly decreased due to rising costs, but it remains healthy. EBIT and EBITDA margins are robust, reflecting solid operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio is maintained at a manageable level, although the total debt is relatively high. Return on Equity is moderate, indicating decent profitability for shareholders. The Equity Ratio suggests a stable financial structure, but there is room for improvement in reducing liabilities.

Cash Flow

Operating Cash Flow is positive, yet Free Cash Flow has been negative in the recent year due to significant capital expenditures. The Operating Cash Flow to Net Income Ratio is strong, indicating good cash generation relative to earnings. However, the negative Free Cash Flow highlights the need for careful management of capital investments.

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: Negative
• Last Price: 90.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VOW3, the sentiment is Negative. The current price of 90.52 is below the 20-day moving average (MA) of 91.16, below the 50-day MA of 95.87, and below the 200-day MA of 93.20, indicating a bearish trend. The MACD of -1.45 indicates Negative momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 37.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:VOW3.

Volkswagen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBG	―	$51.76B	7.76	7.24%	8.00%	-7.14%	-43.43%
VOW3	―	€45.65B	5.44	5.01%	7.03%	-0.19%	-44.09%
8TRA	―	€13.24B	6.08	12.80%	6.42%	-2.98%	-14.55%
BMW	―	$47.87B	8.74	6.06%	5.30%	-11.92%	-43.64%
DTG	―	€28.06B	11.53	11.21%	5.36%	-6.83%	-32.20%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PAH3	―	€10.57B	2.05	-47.46%	5.51%	―	―