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Volkswagen
(XETRA:VOW3)
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Rating:52Neutral
Price Target:
€72.00
▼(-22.33% Downside)
Action:Reiterated
Date:05/01/26
The score reflects pressured financial quality (margin compression, higher leverage, and persistently negative free cash flow) and weak technical positioning (below key moving averages with negative momentum), partly offset by an attractive valuation profile (low P/E and high dividend yield).
Positive Factors
Positive operating cash flow
Consistently positive operating cash flow (~€17B TTM) shows the core automotive and financial-services businesses generate material cash from operations. That durable cash generation supports working capital, ongoing investment and debt servicing capacity, providing a foundation for medium-term restructuring and investment plans.
Negative Factors
High and rising leverage
Very large absolute debt (~€292B) and a rising debt-to-equity (~1.6x) materially reduce financial flexibility. Elevated leverage increases interest expense sensitivity, limits ability to fund large-scale electrification outlays from internal resources, and heightens refinancing and macroeconomic shock risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive operating cash flow
Consistently positive operating cash flow (~€17B TTM) shows the core automotive and financial-services businesses generate material cash from operations. That durable cash generation supports working capital, ongoing investment and debt servicing capacity, providing a foundation for medium-term restructuring and investment plans.
Read all positive factors
Volkswagen (VOW3) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€36.81B
Dividend Yield6.13%
Average Volume (3M)1.07M
Price to Earnings (P/E)5.8
Beta (1Y)1.14
Revenue Growth-2.06%
EPS Growth-33.95%
CountryDE
Employees639,608
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)12.23
Shares Outstanding206,205,440
10 Day Avg. Volume909,278
30 Day Avg. Volume1,074,958
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)0.30
Price to Sales (P/S)0.16
P/FCF Ratio-5.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€111.90Price Target Upside20.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)18.74
Revenue Forecast (FY)€323.82B
Volkswagen Business Overview & Revenue Model
Company Description
Volkswagen AG, established in 1937 and headquartered in Wolfsburg, Germany, is a prominent automotive manufacturer and distributor. The company primarily sells its vehicles across Europe, North and South America, and the Asia-Pacific region. Its o...
How the Company Makes Money
Volkswagen primarily earns revenue from (1) selling vehicles and related automotive products and services and (2) providing financial services tied to those vehicle sales. In its Automotive business, the company generates revenue by wholesaling an...
Volkswagen Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 320.01B | 321.91B | 324.66B | 322.28B | 279.05B | 250.20B |
| Gross Profit | 54.39B | 72.94B | 61.03B | 62.03B | 52.57B | 47.06B |
| EBITDA | 42.01B | 42.64B | 48.22B | 49.84B | 50.01B | 46.69B |
| Net Income | 6.62B | 7.32B | 11.35B | 16.53B | 15.46B | 15.38B |
Balance Sheet | ||||||
| Total Assets | 666.08B | 665.79B | 632.90B | 600.34B | 564.01B | 528.61B |
| Cash, Cash Equivalents and Short-Term Investments | 79.43B | 68.32B | 73.45B | 74.91B | 70.77B | 66.88B |
| Total Debt | 291.56B | 278.98B | 196.52B | 193.97B | 178.44B | 183.37B |
| Total Liabilities | 475.07B | 477.01B | 436.17B | 410.43B | 385.69B | 382.45B |
| Stockholders Equity | 176.16B | 174.00B | 182.29B | 175.69B | 165.38B | 144.45B |
Cash Flow | ||||||
| Free Cash Flow | -7.04B | -9.34B | -10.29B | -6.44B | 5.83B | 20.14B |
| Operating Cash Flow | 17.24B | 15.01B | 17.15B | 19.36B | 28.50B | 38.63B |
| Investing Cash Flow | -27.91B | -27.13B | -31.57B | -19.81B | -41.82B | -26.13B |
| Financing Cash Flow | 22.22B | 11.57B | 11.14B | 16.01B | 4.22B | -7.75B |
Volkswagen Technical Analysis
Negative
92.70
Price Trends
80.34
Negative
82.96
Negative
87.69
Negative
Market Momentum
-2.50
Positive
36.02
Neutral
45.20
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 92.7 is above the 20-day moving average (MA) of 76.63, above the 50-day MA of 80.34, and above the 200-day MA of 87.69, indicating a bearish trend. The MACD of -2.50 indicates Positive momentum. The RSI at 36.02 is Neutral, neither overbought nor oversold. The STOCH value of 45.20 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €8.33B | 5.30 | 7.73% | 4.81% | -13.16% | ― | |
67 Neutral | €42.49B | 8.62 | 5.28% | 7.25% | -8.64% | -43.01% | |
58 Neutral | €14.10B | -435.76 | -0.76% | 2.88% | -44.98% | -102.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | €35.47B | 5.21 | 7.21% | 4.64% | -6.32% | 6.34% | |
52 Neutral | €36.81B | 5.85 | 3.77% | 6.13% | -2.06% | -33.95% | |
49 Neutral | €5.39B | 72.82 | 10.60% | ― | 28.20% | 35.52% |
* General Sector Average
DE:VOW3
Volkswagen
71.52
-16.58
-18.82%
DE:MBG
Mercedes-Benz Group
43.90
-5.73
-11.54%
DE:BMW
Bayerische Motoren Werke Aktiengesellschaft
58.28
-22.63
-27.97%
DE:PAH3
Porsche Automobil Holding
27.21
-5.91
-17.84%
DE:CON
Continental Aktiengesellschaft
71.90
15.58
27.66%
DE:AG1
AUTO1 Group SE
24.76
-1.04
-4.03%
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.