Volkswagen (VOW3) AI Stock Analysis

• Market Cap: €51.58B
• Dividend Yield: 6.34%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.28
• Revenue Growth: -0.19%
• EPS Growth: -44.09%
• Country: DE
• Employees: 639,608
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Manufacturers
• EPS (TTM): 4.34
• Shares Outstanding: 206,205,440
• 10 Day Avg. Volume: 861,156
• 30 Day Avg. Volume: 1,149,021
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €113.46
• Price Target Upside: 13.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: €105.00 ▲(4.63% Upside)

Volkswagen's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust revenue growth and operational efficiency are complemented by a low P/E ratio and high dividend yield, suggesting potential undervaluation. Technical indicators present a mixed picture, with short-term bullish momentum but some bearish signals. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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 (VOW3) is a leading global automotive manufacturer headquartered in Wolfsburg, Germany. As one of the largest carmakers in the world, Volkswagen operates in various sectors within the automotive industry, including passenger vehicles, commercial vehicles, and electric mobility. The company encompasses multiple well-known brands, including Volkswagen Passenger Cars, Audi, Škoda, SEAT, Porsche, Bentley, Bugatti, Lamborghini, and Volkswagen Commercial Vehicles. Volkswagen is committed to innovation and sustainability, focusing on developing electric vehicles (EVs) and advanced mobility solutions to meet the evolving needs of consumers and regulations.

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: Positive
• Last Price: 100.35
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 100.35 is above the 20-day moving average (MA) of 96.97, above the 50-day MA of 93.75, and above the 200-day MA of 90.10, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 66.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VOW3.

Volkswagen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOW3	75 Outperform	€51.58B	6.10	5.01%	6.34%	-0.19%	-44.09%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
MBGAF	―	$60.51B	8.44	7.24%	7.86%	―	―
BAMXF	―	$62.40B	10.61	6.06%	4.76%	―	―
0JHU	―	€11.46B	2.05		3.42%	―	―
8TRA	79 Outperform	€16.06B	7.44	12.80%	5.35%	-2.98%	-14.55%
DTG	63 Neutral	€32.40B	13.34	11.21%	4.64%	-6.83%	-32.20%