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Volkswagen (VWAPY)
OTHER OTC:VWAPY
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Volkswagen
(OTC:VWAPY)
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Rating:74Outperform
Price Target:
$14.00
▲(14.94% Upside)
Volkswagen's overall stock score reflects a balance of strong valuation and solid financial stability, offset by profitability challenges and cash flow pressures. The technical analysis indicates potential overbought conditions, suggesting caution despite the bullish momentum. The absence of recent earnings call data and corporate events limits additional insights.
Positive Factors
Electric Vehicle Growth
Volkswagen's significant growth in electric vehicle deliveries underscores its strategic focus on electrification, supporting long-term market leadership in sustainable transportation.
Market Leadership in Europe
Dominance in the European BEV market highlights Volkswagen's competitive edge and strong brand presence, crucial for sustaining growth amidst rising competition.
Innovation in Battery Technology
Volkswagen's partnership with QuantumScape on solid-state batteries positions it at the forefront of battery innovation, enhancing vehicle efficiency and range.
Negative Factors
Impact of U.S. Import Tariffs
Persistent U.S. tariffs pose a significant financial burden, potentially affecting Volkswagen's profitability and strategic flexibility in North American markets.
Decline in Operating Results
A sharp decline in operating results indicates challenges in cost management and profitability, potentially impacting long-term financial health and investment capacity.
Negative Free Cash Flow
Negative free cash flow due to high capital expenditures could constrain Volkswagen's ability to invest in future growth initiatives and maintain liquidity.
Volkswagen (VWAPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.75B
Dividend Yield5.94%
Average Volume (3M)9.05K
Price to Earnings (P/E)8.5
Beta (1Y)0.71
Revenue Growth2.49%
EPS Growth-45.85%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.11
Shares Outstanding2,062,050,000
10 Day Avg. Volume7,841
30 Day Avg. Volume9,055
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)0.24
Price to Sales (P/S)0.14
P/FCF Ratio-4.28
Enterprise Value/Market Cap5.34
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit5.46
Enterprise Value/Ebitda6.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Volkswagen 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 generates revenue primarily through the sale of vehicles across its numerous brands. The company's revenue model is multifaceted, with key revenue streams including the sale of new vehicles, financing and leasing services, parts and accessories, and after-sales services. Volkswagen also benefits from strategic partnerships with technology firms to enhance its electric vehicle and autonomous driving capabilities, which are expected to drive future growth. Additionally, the company invests in research and development to innovate in electric mobility and digital services, positioning itself competitively in the evolving automotive market. Global demand for vehicles, particularly in emerging markets, and an increasing focus on environmentally friendly transportation solutions further contribute to its earnings.
Volkswagen Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in electric vehicle deliveries and successful new model launches, particularly in Europe, which were overshadowed by significant challenges posed by U.S. import tariffs, a decline in operating results, and sales declines in North America and China. The company's efforts in cost management and restructuring are yielding positive results, but the financial impacts of tariffs and strategic adjustments continue to weigh heavily.Q2-2025 Updates
Positive Updates
Record BEV Growth
Deliveries of battery electric vehicles (BEVs) recorded strong growth, reaching 465,000 units, representing 11% of group deliveries and an increase of 47% year-over-year.
Successful New Model Launches
Numerous new model launches across all brands, including Volkswagen, Audi, Škoda, and Porsche, drove positive market reception and increased order intake, particularly in Western Europe with a 19% increase in orders.
Strong Performance of Škoda
Škoda achieved its best quarterly results with an operating margin of 9% and around EUR 740 million in operating profit, showcasing exceptional performance even in a challenging market.
Volkswagen Group's Leading Position in Europe
Volkswagen has a market share of 28% in BEVs in Europe, with 4 of the 6 best-selling BEVs in Europe coming from the group.
Negative Updates
Impact of U.S. Import Tariffs
The changed import tariffs in the U.S. resulted in expenses of around EUR 1.3 billion in the first half of the year, with potential costs of several billion if tariffs remain.
Operating Result Decline
Operating result declined by about 33% to EUR 6.7 billion, mainly due to increased tariffs, restructuring costs, and margin dilution from the ramp-up of electric vehicles.
Challenges in North America
Deliveries to North America customers fell by 7% due to the tariff situation, with a 16% decline in the second quarter alone.
Porsche's Decline in Sales Revenue
Porsche vehicle sales declined by 11%, with sales revenue dropping by 9% to EUR 16.1 billion, affected by battery-related activities and strategic alignment measures.
Company Guidance
In the Volkswagen AG Investor/Analyst and Media Call for the first half of 2025, key financial metrics and strategic updates were shared. Sales revenue remained stable at EUR 158 billion, while the operating result declined by about 33% to EUR 6.7 billion, resulting in an operating return on sales of 4.2%. The decline was attributed to increased U.S. import tariffs, which had a financial impact of around EUR 1.3 billion, and restructuring costs. The company reported a 1% increase in vehicle deliveries to 4.4 million units, with battery electric vehicle deliveries growing by 47% to 465,000 units, accounting for 11% of total deliveries. Volkswagen maintained its market leadership in Europe with a 28% share in the electric vehicle segment. The automotive net cash flow was reported at minus EUR 1.4 billion, influenced by restructuring expenses and investments. The company adjusted its full-year forecast, anticipating a stable revenue level and an operating return on sales between 4% and 5%, considering ongoing tariff challenges.Volkswagen Financial Statement Overview
Summary
Volkswagen's financial statements indicate a company with solid foundations but facing profitability challenges and cash flow pressures. Revenue growth is slow, and while cost management remains efficient, maintaining net profitability is a concern. The balance sheet is strong with a reasonable debt level and solid asset base, supporting financial stability. Cash flow management needs attention due to negative free cash flow, potentially affecting future operational flexibility.Income Statement
Volkswagen has demonstrated a solid financial performance with a stable gross profit margin of 18.31% in 2024, indicating efficient cost management. However, the net profit margin has decreased to 3.50%, reflecting challenges in maintaining profitability. The revenue growth rate from 2023 to 2024 is modest at 0.74%, suggesting slow growth. The EBIT margin stands at 5.87%, which, while positive, shows a decline from the previous year. EBITDA margin is robust at 15.89%, highlighting strong earnings before major deductions.78
Positive
Balance Sheet
Volkswagen's balance sheet reveals a healthy equity ratio of 28.80%, showcasing financial stability. The debt-to-equity ratio is 1.08, reflecting a balanced approach to leveraging. Return on equity is at 6.23%, indicating moderate effectiveness in using equity capital to generate profits. The company's substantial total assets provide a strong foundation for future growth.82
Very Positive
Cash Flow
The cash flow statement highlights challenges in cash generation, with a negative free cash flow of -$10.30 billion in 2024, which is a decrease from the previous year. The operating cash flow to net income ratio stands at 1.51, indicating that operating activities are generating sufficient cash relative to net income. However, the free cash flow to net income ratio is negative due to high capital expenditures, which could impact future liquidity.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 339.58B | 324.65B | 322.28B | 279.05B | 250.20B | 222.88B |
| Gross Profit | 60.40B | 59.47B | 60.98B | 52.18B | 47.24B | 38.95B |
| EBITDA | 52.32B | 51.60B | 50.74B | 50.01B | 46.69B | 36.35B |
| Net Income | 7.04B | 11.35B | 16.53B | 15.46B | 15.38B | 8.87B |
Balance Sheet | ||||||
| Total Assets | 750.57B | 632.90B | 600.34B | 564.77B | 528.61B | 497.11B |
| Cash, Cash Equivalents and Short-Term Investments | 77.02B | 73.45B | 50.91B | 70.77B | 66.88B | 59.27B |
| Total Debt | 318.98B | 196.52B | 193.97B | 178.44B | 183.37B | 174.31B |
| Total Liabilities | 534.95B | 436.17B | 410.43B | 386.44B | 382.45B | 368.33B |
| Stockholders Equity | 198.68B | 182.29B | 175.69B | 165.38B | 144.45B | 127.05B |
Cash Flow | ||||||
| Free Cash Flow | -10.98B | -10.29B | -6.44B | 5.83B | 20.14B | 7.16B |
| Operating Cash Flow | 16.38B | 17.15B | 19.36B | 28.50B | 38.63B | 24.90B |
| Investing Cash Flow | -31.74B | -31.57B | -19.82B | -41.82B | -26.13B | -22.69B |
| Financing Cash Flow | 1.52B | 11.14B | 16.01B | 4.22B | -7.75B | 7.64B |
Volkswagen Technical Analysis
Positive
12.18
Price Trends
11.25
Positive
11.27
Positive
10.90
Positive
Market Momentum
0.34
Positive
58.25
Neutral
-0.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAPY, the sentiment is Positive. The current price of 12.18 is above the 20-day moving average (MA) of 12.02, above the 50-day MA of 11.25, and above the 200-day MA of 10.90, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of -0.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VWAPY.
Volkswagen Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $285.25B | 9.28 | 12.51% | 2.57% | 7.30% | 12.42% | |
74 Outperform | $61.75B | 8.52 | 4.85% | 5.94% | 2.49% | -45.85% | |
73 Outperform | $76.82B | 16.55 | 4.44% | 0.69% | 2.58% | -46.27% | |
73 Outperform | $1.60T | 326.56 | 7.03% | ― | -1.56% | -59.09% | |
71 Outperform | $53.67B | 11.55 | 10.26% | 5.57% | 3.75% | 33.37% | |
69 Neutral | $40.66B | 9.98 | 5.23% | 4.19% | 0.34% | -25.49% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
VWAPY
Volkswagen
12.25
3.57
41.13%
F
Ford Motor
13.46
4.24
45.99%
GM
General Motors
83.03
31.01
59.61%
HMC
Honda Motor Company
30.24
4.39
16.98%
TSLA
Tesla
488.73
58.13
13.50%
TM
Toyota Motor
219.51
39.06
21.65%
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.