Volkswagen (VOW3) AI Stock Analysis

• Market Cap: €47.68B
• Dividend Yield: 7.06%
• Average Volume (3M): 898.05K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.17
• Revenue Growth: 1.62%
• EPS Growth: -38.38%
• Country: DE
• Employees: 639,608
• Sector: Industrials
• Sector Strength: 90
• Industry: Auto - Manufacturers
• EPS (TTM): 3.69
• Shares Outstanding: 206,205,440
• 10 Day Avg. Volume: 851,749
• 30 Day Avg. Volume: 898,054
• PEG Ratio: -0.36
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.04
• 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: €112.84
• Price Target Upside: 24.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: €102.00 ▲(12.58%Upside)

The overall stock score is driven primarily by Volkswagen's strong financial performance and attractive valuation. The company's consistent revenue growth and solid operational efficiency bolster confidence, while its undervaluation and high dividend yield enhance its appeal to investors. Technical indicators are mixed, reflecting a cautious short-term outlook.

Positive Factors

Financial Performance

Q3 EBIT was €2.86bn, in line with consensus, ahead of forecast of €2.5bn.

Free Cash Flow

FCF was €3.4bn, ahead of consensus of €1.7bn.

Profitability

Audi's underlying EBIT margin was just above 8%, likely making Audi the most profitable premium brand in Q3.

Negative Factors

Cost-Cutting Measures

VW wants to close 'at least' three factories in Germany and downsize the remaining plants.

Job Cuts

Tens of thousands of jobs are at risk due to potential plant closures and cost-cutting measures.

Strategic Uncertainty

The Executive Board still has not yet presented a coherent overall concept for how it wants to strategically lead Volkswagen into the future.

Volkswagen Business Overview & Revenue Model

Company Description

Volkswagen AG, headquartered in Wolfsburg, Germany, is a leading global automobile manufacturer and one of the largest carmakers in the world. The company operates in various segments, including passenger cars, commercial vehicles, and financial services. Volkswagen's core brands include Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Scania, and MAN. The company is committed to innovation, sustainability, and developing electric mobility solutions to shape the future of transportation.

How the Company Makes Money

Volkswagen generates revenue through the sale of vehicles across its diverse portfolio of brands, catering to different segments of the market from mass-market cars to luxury and high-performance vehicles. In addition to vehicle sales, Volkswagen also earns from its financial services division, which provides financing, leasing, and insurance services to customers and dealers. The company invests in research and development to advance electric vehicles (EVs) and autonomous driving technologies. Key revenue streams include the sale of new cars, after-sales services such as maintenance and parts, and its financial services offerings. Volkswagen's earnings are significantly influenced by strategic partnerships and joint ventures, particularly in emerging markets like China. The company also benefits from its strong global distribution network and brand recognition.

Volkswagen Financial Statement Overview

Summary

Volkswagen demonstrates strong revenue growth and operational efficiency with solid profitability margins. The balance sheet is stable, although high debt levels require monitoring. Cash flow management is crucial, with a focus on converting operational success into positive Free Cash Flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	324.65B	322.28B	279.05B	250.20B	222.88B
Gross Profit	59.47B	60.98B	52.18B	47.24B	38.95B
EBITDA	51.60B	49.84B	50.01B	46.69B	36.35B
Net Income	11.35B	16.53B	15.46B	15.38B	8.87B
Balance Sheet
Total Assets	632.90B	600.34B	564.01B	528.61B	497.11B
Cash, Cash Equivalents and Short-Term Investments	73.45B	74.91B	70.77B	66.88B	59.27B
Total Debt	196.52B	193.97B	178.44B	183.37B	174.31B
Total Liabilities	436.17B	410.43B	385.69B	382.45B	368.33B
Stockholders Equity	182.29B	175.69B	165.38B	144.45B	127.05B
Cash Flow
Free Cash Flow	-10.29B	-6.44B	5.83B	20.14B	7.16B
Operating Cash Flow	17.15B	19.36B	28.50B	38.63B	24.90B
Investing Cash Flow	-31.57B	-19.81B	-41.82B	-26.13B	-22.69B
Financing Cash Flow	11.14B	16.01B	4.22B	-7.75B	7.64B

Volkswagen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 90.6 is below the 20-day moving average (MA) of 90.63, below the 50-day MA of 92.52, and above the 200-day MA of 88.42, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 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
DTG	82 Outperform	€31.82B	11.04	12.77%	4.73%	-4.81%	-22.95%
MBG	78 Outperform	$49.68B	5.82	9.32%	8.33%	-5.69%	-29.34%
BMW	78 Outperform	$50.97B	8.09	7.02%	5.09%	-10.13%	-37.28%
VOW3	76 Outperform	€47.68B	5.05	5.52%	7.06%	1.62%	-38.38%
8TRA	74 Outperform	€14.79B	5.86	14.10%	5.75%	-2.53%	-4.91%
Sector *	59 Neutral	AU$1.64B	9.80	11.24%	3.49%	6.75%	3.18%
PAH3	56 Neutral	€10.60B	2.05		5.60%	―	―