Volkswagen (OTC) (VWAGY)
OTHER OTC:VWAGY
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Volkswagen AG
(OTC:VWAGY)
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Rating:52Neutral
Price Target:
$11.00
▼(-8.79% Downside)
Action:ReiteratedDate:03/12/26
The score is held back primarily by weakening financial performance—especially persistent negative free cash flow, declining margins, and higher leverage—and by bearish technicals with the stock trading below major moving averages. These risks are partially offset by an attractive valuation (low P/E) and high dividend yield, while the earnings call reflected limited-margin guidance and significant headwinds despite some operational bright spots (BEV growth and liquidity).
Positive Factors
BEV Adoption and Order Momentum
Sustained BEV volume and order growth reflects successful product-market fit in electrification. Higher EV penetration improves future revenue mix, supports recurring software/charging monetization, and strengthens Volkswagen’s long-term competitiveness in the industry transition.
Negative Factors
Persistent Negative Free Cash Flow
Three consecutive years of negative free cash flow indicate heavy investment and working-capital strain that outpaces operating cash generation. This reduces financial flexibility, may force additional borrowing or asset disposals, and limits capacity to self-fund electrification and restructuring needs.
Read all positive and negative factors
Positive Factors
Negative Factors
BEV Adoption and Order Momentum
Sustained BEV volume and order growth reflects successful product-market fit in electrification. Higher EV penetration improves future revenue mix, supports recurring software/charging monetization, and strengthens Volkswagen’s long-term competitiveness in the industry transition.
Read all positive factors
Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.13B
Dividend Yield5.81%
Average Volume (3M)31.54K
Price to Earnings (P/E)7.4
Beta (1Y)0.69
Revenue Growth2.49%
EPS Growth-45.85%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.73
Shares Outstanding2,950,898,200
10 Day Avg. Volume69,327
30 Day Avg. Volume31,538
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 Cap5.55
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit4.05
Enterprise Value/Ebitda6.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.4
Revenue Forecast (FY)$379.69B
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:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 309.21B | 324.65B | 322.28B | 279.05B | 250.20B |
| Gross Profit | 70.06B | 59.47B | 60.98B | 52.18B | 47.24B |
| EBITDA | 46.57B | 51.60B | 50.74B | 50.01B | 46.69B |
| Net Income | 7.03B | 11.35B | 16.53B | 15.46B | 15.38B |
Balance Sheet | |||||
| Total Assets | 665.51B | 632.90B | 600.34B | 564.77B | 528.61B |
| Cash, Cash Equivalents and Short-Term Investments | 68.29B | 73.45B | 50.91B | 70.77B | 66.88B |
| Total Debt | 278.86B | 196.52B | 193.97B | 178.44B | 183.37B |
| Total Liabilities | 476.81B | 436.17B | 410.43B | 386.44B | 382.45B |
| Stockholders Equity | 173.93B | 182.29B | 175.69B | 165.38B | 144.45B |
Cash Flow | |||||
| Free Cash Flow | -8.97B | -10.29B | -6.44B | 5.83B | 20.14B |
| Operating Cash Flow | 14.42B | 17.15B | 19.36B | 28.50B | 38.63B |
| Investing Cash Flow | -26.06B | -31.57B | -19.82B | -41.82B | -26.13B |
| Financing Cash Flow | 11.11B | 11.14B | 16.01B | 4.22B | -7.75B |
Volkswagen AG Technical Analysis
Negative
12.06
Price Trends
11.37
Negative
11.68
Negative
11.43
Negative
Market Momentum
-0.30
Negative
41.99
Neutral
64.09
Neutral
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 12.06 is above the 20-day moving average (MA) of 10.36, above the 50-day MA of 11.37, and above the 200-day MA of 11.43, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 64.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $265.74B | 8.55 | 9.96% | 2.57% | 7.28% | 12.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.35T | 432.45 | 4.83% | ― | -2.93% | -47.22% | |
59 Neutral | $30.94B | 9.64 | 4.09% | 4.19% | 0.32% | -25.51% | |
52 Neutral | $51.13B | 7.39 | 4.02% | 5.81% | 2.49% | -45.85% | |
51 Neutral | $65.57B | 27.72 | 5.13% | 0.69% | -1.29% | -49.96% | |
48 Neutral | $46.28B | -6.38 | -18.91% | 5.64% | 3.75% | 33.37% |
* Consumer Cyclical Sector Average
VWAGY
Volkswagen AG
10.33
1.08
11.72%
F
Ford Motor
11.60
2.81
32.00%
GM
General Motors
72.54
29.45
68.34%
HMC
Honda Motor Company
24.15
-0.67
-2.71%
TSLA
Tesla
360.59
127.30
54.57%
TM
Toyota Motor
207.01
46.67
29.11%
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.