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Volkswagen AG (VWAGY)
OTHER OTC:VWAGY
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Volkswagen AG (VWAGY) AI Stock Analysis

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VWAGY

Volkswagen AG

(OTC:VWAGY)

Rating:74Outperform
Price Target:
$12.00
▲(7.91% Upside)
Volkswagen AG's overall stock score reflects strong financial performance and attractive valuation, offset by technical indicators suggesting limited momentum and challenges highlighted in the earnings call. The company's strategic focus on growth and cost management provides a positive outlook despite current operational challenges.

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

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, ŠKODA, 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 automobiles and automotive-related services. The company sells a broad portfolio of vehicles, from economy cars to luxury models, across its various brands. In addition to vehicle sales, Volkswagen earns money through its financial services division, which offers vehicle financing, leasing, and insurance services. The company also benefits from after-sales services, including the sale of parts and accessories, which contribute to its earnings. Strategic partnerships and investments in electric mobility and autonomous driving technology also play a role in Volkswagen's revenue generation, positioning the company for growth in the evolving automotive market.

Volkswagen AG Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q2-2025)
|
% Change Since: -5.12%|
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
82
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
79
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
70
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue324.22B324.65B322.28B279.05B250.20B222.88B
Gross Profit56.55B59.47B60.98B52.18B47.24B38.95B
EBITDA50.16B51.60B49.94B50.01B46.69B36.35B
Net Income8.97B11.35B16.53B15.46B15.38B8.87B
Balance Sheet
Total Assets637.68B632.90B600.34B564.77B528.61B497.11B
Cash, Cash Equivalents and Short-Term Investments62.91B73.45B50.91B70.77B66.88B59.27B
Total Debt188.15B196.52B193.97B178.44B183.37B174.31B
Total Liabilities439.67B436.17B410.43B386.44B382.45B368.33B
Stockholders Equity182.88B182.29B175.69B165.38B144.45B127.05B
Cash Flow
Free Cash Flow-11.10B-10.29B-6.44B5.83B20.14B7.16B
Operating Cash Flow15.98B17.15B19.36B28.50B38.63B24.90B
Investing Cash Flow-30.54B-31.57B-19.82B-41.82B-26.13B-22.69B
Financing Cash Flow74.00M11.14B16.01B4.22B-7.75B7.64B

Volkswagen AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.12
Price Trends
50DMA
10.88
Positive
100DMA
10.73
Positive
200DMA
10.16
Positive
Market Momentum
MACD
-0.01
Positive
RSI
52.70
Neutral
STOCH
33.23
Neutral
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 11.12 is above the 20-day moving average (MA) of 11.06, above the 50-day MA of 10.88, and above the 200-day MA of 10.16, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 33.23 is Neutral, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$995.76B185.268.43%-2.73%-51.64%
77
Outperform
$237.02B7.7012.05%2.98%1.06%-7.05%
74
Outperform
$53.60B5.934.85%6.42%0.44%-43.84%
72
Outperform
$49.96B8.327.07%0.97%5.34%-28.29%
71
Outperform
$44.02B14.117.11%6.65%2.72%-17.58%
71
Outperform
$50.61B8.985.17%4.35%0.83%-26.70%
60
Neutral
kr10.10B16.958.94%3.12%-0.68%-21.31%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VWAGY
Volkswagen AG
11.12
0.43
4.02%
F
Ford Motor
11.28
1.74
18.24%
GM
General Motors
52.58
10.30
24.36%
HMC
Honda Motor Company
31.46
3.16
11.17%
TSLA
Tesla
322.27
123.43
62.08%
TM
Toyota Motor
181.49
12.12
7.16%
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 07, 2025