Volkswagen AG (VWAGY) AI Stock Analysis

Compare

2,045 Followers

Top Page

Volkswagen AG

(OTC:VWAGY)

Rating:80Outperform

Price Target:

$13.50

▲(13.45% Upside)

Volkswagen AG's stock score is driven by strong technical indicators and attractive valuation, despite financial performance challenges related to cash flow and earnings call concerns about tariffs and restructuring costs.

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

Market Cap

$58.79B

Dividend Yield6%

Average Volume (3M)26.66K

Price to Earnings (P/E)6.5

Beta (1Y)0.82

Revenue Growth0.44%

EPS Growth-43.84%

CountryUS

Employees639,608

SectorConsumer Cyclical

Sector Strength83

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)0.73

Shares Outstanding2,950,898,200

10 Day Avg. Volume14,869

30 Day Avg. Volume26,655

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap5.36

Enterprise Value/Revenue0.97

Enterprise Value/Gross Profit5.57

Enterprise Value/Ebitda6.28

Forecast

1Y Price Target

$13.50

Price Target Upside13.45% Upside

Rating ConsensusModerate Buy

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 across its various brands. The company's revenue model is based on the production and sale of passenger cars and commercial vehicles, which includes both traditional combustion engine vehicles and an increasing range of electric vehicles. Key revenue streams include new car sales, after-sales services, financing and leasing solutions, and parts and accessories. Volkswagen also benefits from strategic partnerships in areas such as electric vehicle technology and autonomous driving, which enhance its competitive position and drive additional revenue. The company's extensive global presence allows it to tap into diverse markets, further contributing to its earnings.

Volkswagen AG Earnings Call Summary

Earnings Call Date:Jul 25, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed performance for Volkswagen in the first half of 2025. While there were strong achievements in electric vehicle deliveries, order intake, and operational improvements at certain brands like Škoda, significant challenges were posed by increased U.S. tariffs, restructuring costs, and market pressures in China. The overall financial performance was impacted by these issues, leading to a decline in operating profits and negative cash flow.

Q2-2025 Updates

Positive Updates

Stable Sales Revenue

Volkswagen Group generated sales revenue of EUR 158 billion in the first half of 2025, on par with the previous year.

Increased Deliveries of Electric Vehicles

Deliveries of battery electric vehicles reached 465,000 units, representing an increase of 47% and a 20% BEV sales share in Western Europe.

Strong Order Intake

Order intake in Western Europe increased by 19%, with BEV orders rising by 62%.

Record Performance by Škoda

Škoda achieved the best quarterly results in its history with an operating margin of 9% and EUR 740 million in profits.

Significant Workforce Reduction

Over 4,000 employees left Volkswagen since the end of last year, with a further 20,000 departures contractually agreed, expecting annual savings of over EUR 4 billion.

Negative Updates

Decline in Operating Profit

Operating profit for the first half of 2025 declined by 33% to EUR 6.7 billion, primarily due to U.S. tariffs and restructuring costs.

Impact of U.S. Tariffs

Increased U.S. import tariffs resulted in expenses of around EUR 1.3 billion in the first half of the year.

Drop in Porsche Sales

Porsche vehicle sales declined by 11%, with sales revenue dropping by 9% due to battery-related activities and U.S. tariffs.

Challenges in China

Deliveries in China declined by 2%, and the BEV market share decreased to 4.5%.

Negative Free Cash Flow

Net cash flow in the automotive sector amounted to minus EUR 1.4 billion in the first half of the year.

Company Guidance

In the recent Volkswagen AG half-year conference call, the company provided updated financial guidance and discussed key performance metrics for the first half of 2025. Volkswagen reported stable sales revenue of EUR 158 billion, with operating results impacted by increased U.S. import tariffs and restructuring costs, leading to a 33% decline in operating profit to EUR 6.7 billion. The operating return on sales dropped to 4.2%, but excluding tariff and restructuring impacts, it was 5.6%. The company highlighted strong progress in their BEV segment, with deliveries increasing by 47% to 465,000 units. Volkswagen has adjusted its full-year outlook, anticipating revenues to match the previous year's levels and projecting an operating return on sales between 4% and 5%, factoring in potential tariff scenarios. The call emphasized the need for Volkswagen to intensify cost-cutting efforts and highlighted ongoing investments in North America, including over USD 14 billion in local production and technology advancements.

Volkswagen AG Financial Statement Overview

Summary

Volkswagen AG demonstrates strong revenue growth and profitability with a robust balance sheet. However, cash flow challenges due to high capital expenditures need attention, impacting overall financial flexibility.

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	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	49.94B	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

Technical Analysis Sentiment

Positive

Last Price11.90

Price Trends

50DMA

11.37

Positive

100DMA

11.05

Positive

200DMA

10.40

Positive

Market Momentum

MACD

0.16

Positive

RSI

55.13

Neutral

STOCH

18.62

Positive

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 11.9 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.37, and above the 200-day MA of 10.40, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.62 is Positive, 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VWAGY	80 Outperform	$58.79B	6.48	4.85%	6.00%	0.44%	-43.84%
TM	77 Outperform	$257.16B	9.11	12.05%	2.71%	4.14%	-12.12%
HMC	77 Outperform	$54.76B	12.00	5.17%	4.03%	1.68%	-39.28%
TSLA	76 Outperform	$1.09T	196.04	8.43%	―	-2.73%	-51.64%
GM	75 Outperform	$55.36B	9.22	7.07%	0.93%	5.34%	-28.29%
F	73 Outperform	$46.48B	14.90	7.11%	6.39%	2.72%	-17.58%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%

* Consumer Cyclical Sector Average

Performance Comparison

VWAGY

Volkswagen AG

11.90

1.64

15.98%

Ford Motor

11.74

1.84

18.59%

General Motors

58.27

11.37

24.24%

HMC

Honda Motor Company

34.35

4.05

13.37%

TSLA

Tesla

350.84

134.57

62.22%

Toyota Motor

199.62

23.54

13.37%

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: Aug 19, 2025