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Volkswagen (OTC) (VWAGY)
:VWAGY
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Volkswagen AG
(OTC:VWAGY)
Rating:74Outperform
Price Target:
$11.50
▲(11.22%Upside)
Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.98B
Dividend Yield6.77%
Average Volume (3M)62.43K
Price to Earnings (P/E)5.3
Beta (1Y)0.68
Revenue Growth0.63%
EPS Growth-39.07%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength58
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.59
Shares Outstanding2,950,898,200
10 Day Avg. Volume0
30 Day Avg. Volume62,431
Financial Highlights & Ratios
PEG Ratio2.00
Price to Book (P/B)0.04
Price to Sales (P/S)0.00
P/FCF Ratio1.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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, parts, and related services across its portfolio of brands. The Passenger Cars segment is the primary source of income, driven by the manufacture and sale of vehicles under its various brands. The Commercial Vehicles segment contributes through the production and sale of trucks and buses. Additionally, the Financial Services segment plays a crucial role, providing leasing, financing, insurance, and fleet management services. Volkswagen AG also benefits from strategic partnerships and joint ventures, enabling it to expand its market presence and technological capabilities. The company invests significantly in research and development, particularly in electric vehicles and digitalization, to maintain its competitive edge and adapt to evolving market demands.
Volkswagen AG Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -6.00%|
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 maintains strong profitability with consistent revenue growth and competitive margins. However, cash flow challenges due to high capital expenditures and a decline in EBIT slightly impact the overall financial performance.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 | ||||
| 326.75B | 324.65B | 322.28B | 279.05B | 250.20B | 222.88B | Gross Profit |
| 58.73B | 59.47B | 60.98B | 52.18B | 47.24B | 38.95B | EBIT |
| 17.34B | 19.06B | 22.58B | 22.11B | 19.27B | 9.68B | EBITDA |
| 50.83B | 51.60B | 49.94B | 50.01B | 46.69B | 36.35B | Net Income Common Stockholders |
| 9.90B | 11.35B | 16.53B | 15.46B | 15.38B | 8.87B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 64.67B | 73.45B | 50.91B | 70.77B | 66.88B | 59.27B | Total Assets |
| 639.37B | 632.90B | 600.34B | 564.77B | 528.61B | 497.11B | Total Debt |
| 190.39B | 196.52B | 193.97B | 178.44B | 183.37B | 174.31B | Net Debt |
| 153.63B | 156.22B | 150.52B | 149.26B | 143.65B | 140.40B | Total Liabilities |
| 438.23B | 436.17B | 410.43B | 386.44B | 382.45B | 368.33B | Stockholders Equity |
| 185.59B | 182.29B | 175.69B | 165.38B | 144.45B | 127.05B |
| Cash Flow | Free Cash Flow | ||||
| -8.55B | -10.29B | -6.44B | 5.83B | 20.14B | 7.16B | Operating Cash Flow |
| 18.36B | 17.15B | 19.36B | 28.50B | 38.63B | 24.90B | Investing Cash Flow |
| -31.23B | -31.57B | -19.82B | -41.82B | -26.13B | -22.69B | Financing Cash Flow |
| -1.20B | 11.14B | 16.01B | 4.22B | -7.75B | 7.64B |
Volkswagen AG Technical Analysis
Negative
10.34
Price Trends
10.63
Negative
10.58
Negative
10.08
Positive
Market Momentum
-0.10
Positive
37.81
Neutral
7.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAGY, the sentiment is Negative. The current price of 10.34 is below the 20-day moving average (MA) of 10.85, below the 50-day MA of 10.63, and above the 200-day MA of 10.08, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.81 is Neutral, neither overbought nor oversold. The STOCH value of 7.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $42.23B | 8.51 | 11.47% | 5.65% | 3.03% | 28.54% | |
75 Outperform | $229.57B | 7.53 | 13.36% | 3.47% | -0.59% | 7.56% | |
74 Outperform | $1.06T | 173.97 | 9.16% | ― | 1.03% | -53.71% | |
74 Outperform | $51.98B | 5.30 | 5.47% | 6.77% | 0.63% | -39.07% | |
74 Outperform | $47.74B | 8.50 | 6.54% | 3.68% | 4.37% | 6.93% | |
73 Outperform | $47.37B | 7.10 | 8.88% | 1.22% | 7.76% | -14.17% | |
62 Neutral | $6.86B | 11.07 | 2.77% | 4.27% | 2.66% | -24.95% |
* Consumer Cyclical Sector Average
Performance Comparison
VWAGY
Volkswagen AG
10.34
-1.38
-11.77%
F
Ford Motor
10.42
-0.50
-4.58%
GM
General Motors
48.28
1.34
2.85%
HMC
Honda Motor Company
29.36
-1.21
-3.96%
TSLA
Tesla
316.35
131.49
71.13%
TM
Toyota Motor
173.95
-20.19
-10.40%
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.