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Volkswagen (OTC) (VWAGY)
:VWAGY
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Volkswagen AG
(OTC:VWAGY)
Rating:74Outperform
Price Target:
$12.00
▲(4.44% Upside)
Volkswagen AG (VWAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.16B
Dividend Yield6.22%
Average Volume (3M)14.07K
Price to Earnings (P/E)6.4
Beta (1Y)0.79
Revenue Growth0.44%
EPS Growth-43.84%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength72
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.73
Shares Outstanding2,950,898,200
10 Day Avg. Volume14,735
30 Day Avg. Volume14,074
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 Cap5.51
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit5.57
Enterprise Value/Ebitda6.28
Forecast
1Y Price Target
$12.00Price Target Upside4.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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: -1.96%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Despite stable sales revenue and robust growth in battery electric vehicles, Volkswagen faced significant challenges from U.S. tariffs and restructuring costs, leading to a decline in operating results and notable difficulties in the North American and Chinese markets.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.
Battery Electric Vehicle Growth
Deliveries of battery electric vehicles (BEVs) recorded strong growth, reaching 465,000 units, representing 11% of group deliveries and an increase of 47%.
Order Backlog Growth
The order backlog in Western Europe grew to around 925,000 vehicles by the end of June, extending well into the fourth quarter.
Strong Performance in Europe and South America
By region, growth was driven by strong performance in Europe and South America, with increases of 2% and 18%, respectively.
Successful Restructuring Efforts
Volkswagen has already reduced the material cost of its compact main platform by 40%, with plans for a further 10% reduction.
Negative Updates
Operating Result Decline
The operating result declined by about 33% to EUR 6.7 billion, mainly due to increased tariffs and restructuring costs.
Impact of U.S. Import Tariffs
Changed import tariffs in the U.S. resulted in expenses of around EUR 1.3 billion in the first half of the year.
Significant Decline in North America Deliveries
Deliveries to North American customers fell significantly by 7% due to the tariff situation, with a 16% decline in the second quarter alone.
Porsche Sales and Revenue Decline
Porsche vehicle sales declined by 11% to approximately 135,000 units, and sales revenue dropped by 9% to EUR 16.1 billion.
Challenges in China Market
In a highly competitive market characterized by intense price pressure, deliveries declined by 2% to around 1.3 million vehicles in China.
Company Guidance
During the Volkswagen AG Investor/Analyst and Media Call for the second fiscal period of 2025, the company shared detailed guidance on its half-year performance and outlook. The Volkswagen Group reported stable sales revenue of EUR 158 billion, aligning with the previous year, despite significant challenges such as increased U.S. import tariffs and restructuring costs. The operating result declined by about a third to EUR 6.7 billion, with an operating return on sales of 4.2%. Excluding tariffs and restructuring, the return on sales was 5.6% for the first half, reaching 6.8% in Q2. Deliveries increased by 1% to 4.4 million units, with battery electric vehicle (BEV) deliveries growing by 47% to 465,000 units. The company highlighted its focus on strategic growth in North America, despite a 7% decline in deliveries there, and emphasized its continued product offensive and cost management efforts. The full-year outlook was adjusted based on tariff scenarios, with anticipated revenues remaining at the previous year's level, an operating return on sales between 4% and 5%, and net cash flow expected to be EUR 1-3 billion.Volkswagen AG Financial Statement Overview
Summary
Volkswagen AG demonstrates strong revenue growth and profitability with competitive margins. However, it faces cash flow challenges due to high capital expenditures. While the balance sheet is robust, improvements in free cash flow management are needed.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 | 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
Positive
11.49
Price Trends
10.90
Positive
10.73
Positive
10.18
Positive
Market Momentum
0.06
Negative
58.54
Neutral
86.95
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 11.49 is above the 20-day moving average (MA) of 11.07, above the 50-day MA of 10.90, and above the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 86.95 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.06T | 190.90 | 8.43% | ― | -2.73% | -51.64% | |
77 Outperform | $245.19B | 8.70 | 12.05% | 2.86% | 4.14% | -12.12% | |
75 Outperform | $52.49B | 11.43 | 5.17% | 4.18% | 1.68% | -39.28% | |
74 Outperform | $57.16B | 6.36 | 4.85% | 6.22% | 0.44% | -43.84% | |
72 Outperform | $51.42B | 8.56 | 7.07% | 0.94% | 5.34% | -28.29% | |
71 Outperform | $45.05B | 14.44 | 7.11% | 6.63% | 2.72% | -17.58% | |
56 Neutral | HK$25.37B | 4.80 | -2.69% | 5.71% | -0.46% | -53.29% |
* Consumer Cyclical Sector Average
Performance Comparison
VWAGY
Volkswagen AG
11.49
0.97
9.22%
F
Ford Motor
11.14
1.98
21.62%
GM
General Motors
54.01
11.47
26.96%
HMC
Honda Motor Company
32.70
4.55
16.16%
TSLA
Tesla
339.03
141.54
71.67%
TM
Toyota Motor
189.13
21.16
12.60%
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.