Volkswagen AG (VWAGY) AI Stock Analysis

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Volkswagen AG

(OTC:VWAGY)

Rating:69Neutral

Price Target:

$11.50

▲(2.86%Upside)

Volkswagen AG's stock score is primarily supported by its strong valuation and solid financial performance. However, the technical analysis indicates weak momentum, and mixed outcomes from the earnings call present both growth opportunities and risks, contributing to a moderate overall score.

Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$54.81B

Dividend Yield6.39%

Average Volume (3M)9.73K

Price to Earnings (P/E)5.6

Beta (1Y)0.68

Revenue Growth0.63%

EPS Growth-39.07%

CountryUS

Employees639,608

SectorConsumer Cyclical

Sector Strength68

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)0.59

Shares Outstanding2,950,898,200

10 Day Avg. Volume12,821

30 Day Avg. Volume9,730

Financial Highlights & Ratios

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 CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.50

Price Target Upside2.86% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Volkswagen AG Business Overview & Revenue Model

Company DescriptionVolkswagen AG, commonly referred to as VW, is a leading global automotive manufacturer headquartered in Wolfsburg, Germany. The company operates through multiple sectors, including passenger cars, commercial vehicles, and financial services. Volkswagen's core products include a diverse range of vehicles under brands such as Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, and Volkswagen Commercial Vehicles. The company is known for its commitment to innovation, quality, and sustainable mobility solutions.

How the Company Makes MoneyVolkswagen AG generates revenue primarily through the sale of automobiles and automotive-related services. The company sells a broad portfolio of vehicles, from economy cars to luxury models, across its various brands. In addition to vehicle sales, Volkswagen earns money through its financial services division, which offers vehicle financing, leasing, and insurance services. The company also benefits from after-sales services, including the sale of parts and accessories, which contribute to its earnings. Strategic partnerships and investments in electric mobility and autonomous driving technology also play a role in Volkswagen's revenue generation, positioning the company for growth in the evolving automotive market.

Volkswagen AG Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 1.64%|

Next Earnings Date:Jul 25, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook, with positive developments in sales revenue, BEV share, and regional growth, but significant challenges in operating margins, cash flow, and performance in China. The strategic focus on product innovation and regional strategies shows promise for future growth.

Q1-2025 Updates

Positive Updates

Growth in Sales Revenue and BEV Share

Sales revenue increased by 3%, and the BEV share rose to 10%, with Western Europe more than doubling to 19%.

Strong Order Intake

Order intake in Western Europe grew by 30% year-on-year, with BEV order intake up by 64%.

Product Launches and Innovations

New model launches include the Audi A6, Skoda Elroq, and the upcoming ID. Every 1 prototype. The In China, For China strategy is progressing with 30 new models by 2026.

Financial Stability

Net liquidity remains solid at €33.2 billion, and the revolving credit facility increased to €12.5 billion.

Regional Performance

Double-digit growth in South America, particularly in Argentina, where volumes more than doubled.

Negative Updates

Decline in Operating Result and Margin

Operating result fell 37% to €2.9 billion, with a margin of 3.7%. Special effects and restructuring expenses impacted profitability.

Challenges in China

Deliveries in China declined by 7%, with operating results from joint ventures down by a third compared to the prior year.

Impact of BEV Ramp-up on Margins

The increase in BEV share led to expected margin dilution, as BEV margins are still significantly below those of ICE cars.

Provision for Potential Penalties

A provision of €0.6 billion was made for potential penalties related to CO2 regulations in Europe.

Cash Flow Challenges

Automotive Division net cash flow totaled minus €0.8 billion, affected by restructuring cash outflows and lower operating results.

Company Guidance

During Volkswagen's Q1 2025 call, CFO Arno Antlitz outlined several key metrics and strategic updates for the company. Sales revenue increased by 3%, and order intake in Western Europe surged by 30%, with BEV share climbing to 10% overall and 19% in Western Europe. Global deliveries rose by 1.4% to 2.1 million vehicles, bolstered by a 64% rise in BEV orders. Despite a 37% drop in operating results to €2.9 billion, Volkswagen renewed a €12.5 billion revolving credit facility and increased TRATON's free float to 12.5%. Challenges included €1.1 billion in special earnings effects and restructuring expenses, and a negative automotive net cash flow of €0.8 billion, though the company maintains a solid net liquidity of €33.2 billion. Volkswagen confirmed its 2025 financial outlook, anticipating a 5% sales revenue increase and a 5.5%-6.5% operating return on sales, despite ongoing geopolitical and market challenges.

Volkswagen AG Financial Statement Overview

Summary

Volkswagen AG demonstrates strong revenue growth and profitability, with solid margins and a robust balance sheet. However, challenges in cash flow due to high capital expenditures slightly detract from its financial performance.

Income Statement

Very Positive

Volkswagen AG has demonstrated consistent revenue growth and maintains strong gross and net profit margins. The gross profit margin stands at 18.31%, and the net profit margin is at 3.50% for the latest year. Despite a decline in EBIT, the company shows a healthy EBITDA margin of 15.90%. Overall, the income statement reflects solid profitability with minor fluctuations in EBIT over recent years.

Balance Sheet

Positive

The balance sheet of Volkswagen AG is robust with a steady increase in stockholders' equity and total assets. The debt-to-equity ratio is 1.08, indicating a moderate level of leverage. The equity ratio is 28.80%, suggesting a stable financial structure. Return on equity is 6.23%, demonstrating reasonable profitability relative to equity.

Cash Flow

Positive

Volkswagen AG's cash flow analysis shows challenges with free cash flow, which is currently negative. The operating cash flow to net income ratio is 1.51, indicating efficient operations. However, the free cash flow to net income ratio is negative due to significant capital expenditures, suggesting a need for improved cash management strategies.

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	49.94B	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	564.77B	528.61B	497.11B
Cash, Cash Equivalents and Short-Term Investments	73.45B	50.91B	70.77B	66.88B	59.27B
Total Debt	196.52B	193.97B	178.44B	183.37B	174.31B
Total Liabilities	436.17B	410.43B	386.44B	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	-19.82B	-41.82B	-26.13B	-22.69B
Financing Cash Flow	11.14B	16.01B	4.22B	-7.75B	7.64B

Volkswagen AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.18

Price Trends

50DMA

10.89

Positive

100DMA

10.74

Positive

200DMA

10.11

Positive

Market Momentum

MACD

0.14

Negative

RSI

57.62

Neutral

STOCH

72.15

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAGY, the sentiment is Positive. The current price of 11.18 is above the 20-day moving average (MA) of 10.81, above the 50-day MA of 10.89, and above the 200-day MA of 10.11, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 72.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VWAGY.

Volkswagen AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
F	77 Outperform	$47.24B	9.52	11.47%	5.05%	3.03%	28.54%
GM	73 Outperform	$51.33B	7.69	8.88%	1.13%	7.76%	-14.17%
HMC	72 Outperform	$49.23B	8.72	6.54%	3.54%	0.83%	-26.70%
TSLA	72 Outperform	$1.01T	174.27	9.16%	―	1.03%	-53.71%
TM	70 Outperform	$221.95B	7.30	13.36%	3.58%	1.06%	-7.05%
VWAGY	69 Neutral	$54.81B	5.62	5.47%	6.39%	0.63%	-39.07%
Sector *	62 Neutral	$16.91B	10.88	-7.01%	2.97%	1.73%	-25.16%

* Consumer Cyclical Sector Average

Performance Comparison

VWAGY

Volkswagen AG

11.18

-0.63

-5.33%

Ford Motor

11.57

-1.85

-13.79%

General Motors

52.71

3.33

6.74%

HMC

Honda Motor Company

30.81

-0.46

-1.47%

TSLA

Tesla

310.78

62.28

25.06%

Toyota Motor

170.02

-34.37

-16.82%

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.Date of analysis: Jun 25, 2025