Volkswagen (OTC) (VWAGY)
OTHER OTC:VWAGY
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Volkswagen AG
(OTC:VWAGY)
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Rating:49Neutral
Price Target:
$10.50
▼(-12.94% Downside)
Action:Reiterated
Date:05/02/26
The score is primarily held down by weakening financial performance—margin compression, higher leverage, and negative free cash flow—along with weak technical momentum. These are partly offset by an inexpensive valuation (low P/E and high yield) and an earnings-call outlook that shows credible cost and investment discipline but still meaningful near-term risks (tariffs, special items, and challenged regions/units).
Positive Factors
Rapid BEV adoption
Sustained BEV volume growth demonstrates Volkswagen is converting product investment into market share in electrification. A growing BEV mix supports long-term revenue diversification, future software/aftermarket monetization and aligns with regulatory shifts, strengthening structural competitiveness.
Negative Factors
Sharp revenue decline and margin compression
A large drop in trailing revenues and compressed operating margins materially weaken the firm's ability to self-fund investments and maintain returns. Persistently lower margins reduce operating leverage benefits from scale and constrain long-term capital allocation flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid BEV adoption
Sustained BEV volume growth demonstrates Volkswagen is converting product investment into market share in electrification. A growing BEV mix supports long-term revenue diversification, future software/aftermarket monetization and aligns with regulatory shifts, strengthening structural competitiveness.
Read all positive factors
Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.60B
Dividend Yield5.81%
Average Volume (3M)51.68K
Price to Earnings (P/E)7.6
Beta (1Y)0.73
Revenue Growth5.72%
EPS Growth-28.86%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.17
Shares Outstanding2,950,898,200
10 Day Avg. Volume51,356
30 Day Avg. Volume51,676
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)0.30
Price to Sales (P/S)0.17
P/FCF Ratio-5.80
Enterprise Value/Market Cap5.38
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit4.11
Enterprise Value/Ebitda5.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.28
Revenue Forecast (FY)$379.20B
Volkswagen AG Business Overview & Revenue Model
Company Description
Volkswagen 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, ...
How the Company Makes Money
Volkswagen primarily makes money through (1) sales of vehicles and related products/services and (2) its financial services activities. Automotive/industrial revenues come from selling new vehicles (across its brand portfolio) to wholesale custome...
Volkswagen AG Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
Balanced. The call highlighted strong operational progress — rapid BEV growth, product launches, material cost and workforce reductions, improved net cash flow and strategic industrial milestones (gigafactory, JV progress) — which underpin medium‑ and long‑term ambitions. However, significant near‑term profitability pressures remain from large special items (notably Porsche impairments), U.S. tariffs, losses from technology ramp‑ups (PowerCo, CARIAD), and regional challenges (China and North America). The company presented credible mitigation actions and an achievable roadmap, but 2025 results and 2026 guidance reflect meaningful short‑term headwinds that keep the overall tone cautious.Positive Updates
Stable Overall Deliveries
Delivered nearly 9 million vehicles worldwide in 2025, broadly in line with prior year, demonstrating volume resilience in a challenging market.
Negative Updates
Significant Decline in Reported Profitability
Reported operating profit fell ~53% to EUR 8.9 billion in 2025 (reported operating margin 2.8%), reflecting major headwinds and one‑offs.
Read all updates
Q4-2025 Updates
Positive
Negative
Stable Overall Deliveries
Delivered nearly 9 million vehicles worldwide in 2025, broadly in line with prior year, demonstrating volume resilience in a challenging market.
Read all positive updates
Company Guidance
Volkswagen guided 2026 sales revenue to be broadly flat to up 3%, with an operating return on sales of 4.0%–5.5%, an automotive investment ratio of 11%–12% (with CapEx/R&D discipline and absolute automotive CapEx expected below 2025), automotive net cash flow of EUR 3–6 billion and year‑end automotive net liquidity of about EUR 32–34 billion (guidance is based on the current tariff situation and broadly stable passenger‑car demand); management reiterated a dividend policy of at least 30% (proposal for FY2025: EUR 5.26 preferred / EUR 5.20 ordinary), noted FY2025 actual automotive net cash flow of EUR 6.4 billion and net liquidity of EUR 34.5 billion, and set its 2030 ambition at an 8%–10% operating return on sales, >60% cash conversion in the automotive division and a long‑run automotive investment ratio target around 9%.Volkswagen AG Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 308.55B | 309.21B | 324.65B | 322.28B | 279.05B | 250.20B |
| Gross Profit | 70.10B | 70.06B | 59.47B | 60.98B | 52.18B | 47.24B |
| EBITDA | 48.37B | 46.57B | 51.60B | 50.74B | 50.01B | 46.69B |
| Net Income | 6.52B | 7.03B | 11.35B | 16.53B | 15.46B | 15.38B |
Balance Sheet | ||||||
| Total Assets | 666.78B | 665.51B | 632.90B | 600.34B | 564.77B | 528.61B |
| Cash, Cash Equivalents and Short-Term Investments | 79.51B | 68.29B | 73.45B | 50.91B | 70.77B | 66.88B |
| Total Debt | 291.86B | 278.86B | 196.52B | 193.97B | 178.44B | 183.37B |
| Total Liabilities | 475.57B | 476.81B | 436.17B | 410.43B | 386.44B | 382.45B |
| Stockholders Equity | 176.35B | 173.93B | 182.29B | 175.69B | 165.38B | 144.45B |
Cash Flow | ||||||
| Free Cash Flow | -7.26B | -8.97B | -10.29B | -6.44B | 5.83B | 20.14B |
| Operating Cash Flow | 17.06B | 14.42B | 17.15B | 19.36B | 28.50B | 38.63B |
| Investing Cash Flow | -27.96B | -26.06B | -31.57B | -19.82B | -41.82B | -26.13B |
| Financing Cash Flow | 22.30B | 11.11B | 11.14B | 16.01B | 4.22B | -7.75B |
Volkswagen AG Technical Analysis
Neutral
12.06
Price Trends
10.48
Positive
11.17
Negative
11.36
Negative
Market Momentum
<0.01
Negative
57.33
Neutral
81.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAGY, the sentiment is Neutral. The current price of 12.06 is above the 20-day moving average (MA) of 10.46, above the 50-day MA of 10.48, and above the 200-day MA of 11.36, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 81.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $247.64B | 10.45 | 10.10% | 2.57% | 6.73% | -16.97% | |
62 Neutral | $1.60T | 612.14 | 4.79% | ― | 2.25% | -39.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $59.49B | 4.52 | -14.72% | 5.64% | 3.82% | -209.77% | |
58 Neutral | $71.04B | 6.52 | 3.96% | 0.69% | -2.03% | -63.41% | |
58 Neutral | $34.43B | -1.42 | -3.53% | 4.19% | 1.63% | -154.96% | |
49 Neutral | $53.60B | 7.58 | 3.77% | 5.81% | 5.72% | -28.86% |
* Consumer Cyclical Sector Average
VWAGY
Volkswagen AG
10.76
-0.23
-2.06%
F
Ford Motor
15.32
5.50
55.93%
GM
General Motors
79.79
31.20
64.19%
HMC
Honda Motor Company
26.42
-2.80
-9.58%
TSLA
Tesla
433.59
70.70
19.48%
TM
Toyota Motor
190.09
3.41
1.83%
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.