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Volkswagen AG (VWAGY)
OTHER OTC:VWAGY
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Volkswagen AG
(OTC:VWAGY)
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Rating:73Outperform
Price Target:
$13.00
▲(1.25% Upside)
Volkswagen AG's stock score is primarily driven by its strong valuation and solid financial performance. However, challenges highlighted in the earnings call, such as negative operating results and tariff impacts, weigh on the score. Positive technical indicators provide some support, but cash flow issues need resolution for improved financial flexibility.
Positive Factors
Strong BEV Growth
Volkswagen's significant growth in battery electric vehicle sales indicates a successful transition towards sustainable mobility, enhancing long-term market position.
European Market Performance
Robust growth in the European market underscores Volkswagen's competitive advantage and strengthens its market position, supporting future revenue stability.
Digital Cockpit Solutions Partnership
The partnership with Ecarx for digital cockpit solutions enhances Volkswagen's technological capabilities, improving product offerings and customer experience.
Negative Factors
Negative Operating Result
A negative operating result indicates financial challenges that could impact Volkswagen's profitability and necessitate strategic adjustments.
Tariff Impact and Market Challenges
Increased tariffs significantly raise costs, potentially affecting Volkswagen's pricing strategy and competitiveness in the North American market.
Chip Shortages
Ongoing chip shortages threaten production capabilities, posing a risk to Volkswagen's ability to meet demand and maintain market share.
Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.20B
Dividend Yield5.56%
Average Volume (3M)4.51K
Price to Earnings (P/E)9.0
Beta (1Y)0.71
Revenue Growth2.49%
EPS Growth-45.85%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.11
Shares Outstanding2,950,898,200
10 Day Avg. Volume0
30 Day Avg. Volume4,510
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)0.25
Price to Sales (P/S)0.14
P/FCF Ratio-4.38
Enterprise Value/Market Cap4.89
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit5.55
Enterprise Value/Ebitda6.26
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Volkswagen AG Business Overview & Revenue Model
Company DescriptionVolkswagen 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 MoneyVolkswagen AG generates revenue primarily through the sale of vehicles across its diverse brand portfolio. The company earns significant income from the sale of passenger cars and commercial vehicles, with a growing emphasis on electric vehicles (EVs) as part of its strategy to transition to sustainable mobility. Additional revenue streams include financing services through Volkswagen Financial Services, which offers leasing and loan options to customers. The company also benefits from partnerships with technology firms to develop innovative automotive solutions, such as autonomous driving and connectivity features. Furthermore, Volkswagen's commitment to manufacturing efficiency and cost management contributes to its profitability, while its global presence allows it to tap into various markets, driving sales and enhancing brand loyalty.
Volkswagen AG Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Negative
The earnings call highlighted strong growth in BEV sales and performance in the European market, but was overshadowed by significant financial challenges, including negative operating results, substantial tariff-related costs, and declining profits. The company faces considerable restructuring and market headwinds, particularly in North America and China.Q3-2025 Updates
Positive Updates
Strong BEV Growth
Global BEV share increased to 11%, with electric vehicles accounting for 25% of the total order book. BEV order intake increased by 64% year-on-year.
European Market Performance
Volkswagen recorded strong delivery growth of 9% in Europe in Q3, accelerating the positive trend seen in the first half of the year.
Financial Services Division Success
The Financial Services division improved its operating result by 40% to EUR 3.1 billion due to higher contract volume and better portfolio margins.
Negative Updates
Negative Operating Result
The operating result in Q3 was negative at minus EUR 1.3 billion, impacted by EUR 5.3 billion in headwinds including increased U.S. tariffs and goodwill impairment.
Tariff Impact and Market Challenges
U.S. tariffs increased costs by EUR 2.1 billion in the first nine months, with an expected annual impact of up to EUR 5 billion. This has led to reduced sales in North America.
Profit Decline and Restructuring Costs
Profit after tax declined by 61% to EUR 3.4 billion due to higher tax rates and restructuring costs, including EUR 2.7 billion from goodwill impairment in Porsche.
Challenges in China
Unit sales in China decreased by 7% in Q3 and 4% year-to-date, with ongoing pricing and competitive pressures in the market.
Company Guidance
During the Volkswagen Group's third-quarter 2025 conference call, CFO and COO Arno Antlitz highlighted several key metrics and financial outcomes. The company reported a negative operating result of minus EUR 1.3 billion for Q3, primarily due to EUR 5.3 billion in headwinds, including EUR 4.7 billion from Porsche's product strategy realignment and goodwill impairment, and EUR 800 million from increased U.S. tariffs. Despite these challenges, Volkswagen achieved a 5% operating margin for Q3, translating to a 4.5% margin after nine months when excluding special effects but including tariffs. Global deliveries rose to 6.6 million vehicles, a 1% increase from the previous year, with BEV sales climbing 42% year-to-date. The company maintained a net cash flow of EUR 1.8 billion and a solid net liquidity position of EUR 31 billion by September's end. Looking forward, Volkswagen confirmed an operating return on sales between 2% to 3% for the full year, with a chance to close at the upper end of the range, and expects to maintain a positive automotive net cash flow dependent on Q4 performance and working capital movements.Volkswagen AG Financial Statement Overview
Summary
Volkswagen AG shows strong revenue growth and profitability with a robust balance sheet. However, cash flow challenges due to high capital expenditures need attention.Income Statement
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.82
Very Positive
Balance Sheet
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.79
Positive
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 324.22B | 324.65B | 322.28B | 279.05B | 250.20B | 222.88B |
| Gross Profit | 56.55B | 59.47B | 60.98B | 52.18B | 47.24B | 38.95B |
| EBITDA | 50.16B | 51.60B | 50.74B | 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 | 564.77B | 528.61B | 497.11B |
| Cash, Cash Equivalents and Short-Term Investments | 62.91B | 73.45B | 50.91B | 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 | 386.44B | 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 | -19.82B | -41.82B | -26.13B | -22.69B |
| Financing Cash Flow | 74.00M | 11.14B | 16.01B | 4.22B | -7.75B | 7.64B |
Volkswagen AG Technical Analysis
Positive
12.84
Price Trends
11.24
Positive
11.41
Positive
11.09
Positive
Market Momentum
0.44
Negative
77.04
Negative
98.35
Negative
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 12.84 is above the 20-day moving average (MA) of 11.83, above the 50-day MA of 11.24, and above the 200-day MA of 11.09, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 77.04 is Negative, neither overbought nor oversold. The STOCH value of 98.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VWAGY.
Volkswagen AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $273.03B | 8.80 | 12.51% | 2.71% | 7.30% | 12.42% | |
74 Outperform | $54.83B | 11.80 | 10.26% | 5.45% | 3.75% | 33.37% | |
73 Outperform | $64.20B | 8.98 | 3.76% | 5.56% | 2.49% | -45.85% | |
73 Outperform | $75.46B | 16.26 | 4.44% | 0.70% | 2.58% | -46.27% | |
73 Outperform | $1.53T | 306.67 | 7.03% | ― | -1.56% | -59.09% | |
69 Neutral | $42.00B | 10.25 | 5.23% | 4.08% | 0.34% | -25.49% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
VWAGY
Volkswagen AG
12.84
3.90
43.62%
F
Ford Motor
13.76
4.46
47.96%
GM
General Motors
80.89
29.19
56.46%
HMC
Honda Motor Company
30.93
6.91
28.77%
TSLA
Tesla
458.96
-4.06
-0.88%
TM
Toyota Motor
208.12
33.87
19.44%
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.