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Volkswagen (VWAPY)
OTHER OTC:VWAPY
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Volkswagen
(OTC:VWAPY)
74Outperform
Volkswagen (VWAPY) vs. S&P 500 (SPY)
Market Cap
$55.35B
Dividend Yield6.02%
Average Volume (3M)9.91K
Price to Earnings (P/E)5.5
Beta (1Y)0.59
Revenue Growth0.63%
EPS Growth-39.07%
CountryUS
Employees639,608
SectorConsumer Cyclical
Sector Strength59
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.42
Shares Outstanding2,062,050,000
10 Day Avg. Volume0
30 Day Avg. Volume9,910
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 AG generates revenue through the sale of its diverse range of vehicles, which is the primary source of income for the company. Each brand under the Volkswagen Group caters to different market segments, from mass-market vehicles to luxury and sports cars. In addition to vehicle sales, Volkswagen earns significant revenue from its financial services division, which provides a variety of financial solutions such as leasing, financing, and insurance services for both individual customers and dealerships. The company also benefits from its commercial vehicle segment, which includes trucks and buses under the Scania and MAN brands. Volkswagen's strategic partnerships and investments in technology and innovation, such as electric vehicle development and autonomous driving technologies, also play a crucial role in its revenue growth and competitive positioning in the global automotive market.
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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 324.65B | 322.28B | 279.23B | 250.20B | 222.88B | Gross Profit |
| 59.47B | 61.02B | 52.23B | 47.24B | 38.95B | EBIT |
| 19.06B | 22.58B | 22.12B | 19.27B | 9.68B | EBITDA |
| 51.60B | 49.94B | 49.68B | 49.43B | 40.55B | Net Income Common Stockholders |
| 11.35B | 16.60B | 15.46B | 15.38B | 8.87B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 73.45B | 50.91B | 70.79B | 66.88B | 58.61B | Total Assets |
| 632.90B | 600.34B | 564.77B | 528.61B | 497.11B | Total Debt |
| 196.52B | 193.97B | 178.44B | 183.37B | 174.31B | Net Debt |
| 156.22B | 150.52B | 149.26B | 143.65B | 140.40B | Total Liabilities |
| 436.17B | 410.43B | 386.44B | 382.45B | 368.33B | Stockholders Equity |
| 182.29B | 175.69B | 165.38B | 144.45B | 127.05B |
| Cash Flow | Free Cash Flow | |||
| -10.29B | -6.44B | 5.83B | 20.14B | 7.16B | Operating Cash Flow |
| 17.15B | 19.36B | 28.50B | 38.63B | 24.90B | Investing Cash Flow |
| -31.57B | -19.82B | -41.82B | -26.13B | -22.69B | Financing Cash Flow |
| 11.14B | 16.01B | 4.22B | -7.75B | 7.64B |
Volkswagen Technical Analysis
Positive
10.96
Price Trends
10.80
Positive
10.21
Positive
10.11
Positive
Market Momentum
0.15
Negative
56.32
Neutral
44.84
Neutral
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 10.96 is above the 20-day moving average (MA) of 10.44, above the 50-day MA of 10.80, and above the 200-day MA of 10.11, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VWAPY.
Volkswagen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $252.51B | 7.62 | 14.59% | 2.53% | -0.59% | 7.56% | |
74 Outperform | $55.35B | 5.53 | 5.47% | 6.02% | 0.63% | -39.07% | |
74 Outperform | $49.69B | 7.13 | 8.11% | 3.94% | 4.37% | 6.93% | |
74 Outperform | $923.82B | 154.12 | 9.16% | ― | 1.03% | -53.71% | |
73 Outperform | $40.88B | 7.03 | 11.47% | 7.29% | 5.00% | 35.92% | |
70 Outperform | $43.55B | 6.53 | 8.88% | 1.06% | 7.76% | -14.17% | |
61 Neutral | $6.64B | 11.67 | 3.04% | 3.98% | 2.60% | -21.24% |
* Consumer Cyclical Sector Average
Performance Comparison
VWAPY
Volkswagen
10.89
-1.17
-9.70%
F
Ford Motor
10.44
-1.01
-8.82%
GM
General Motors
45.46
0.63
1.41%
HMC
Honda Motor Company
30.79
-2.21
-6.70%
TSLA
Tesla
275.35
97.54
54.86%
TM
Toyota Motor
192.43
-38.83
-16.79%
Volkswagen Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -1.62%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in sales growth, BEV expansion, and regional successes, particularly in Western Europe and South America. However, significant challenges include declining operating margins, high restructuring costs, and uncertainties in China and with tariffs. The financial outlook reflects these mixed results, with a cautious approach towards future quarters.Q1-2025 Updates
Positive Updates
Sales Revenue and Order Intake Growth
Sales revenue was up 3%, and order intake in Western Europe grew by 30%. BEV share increased to 10% globally and more than doubled to 19% in Western Europe.
Positive Developments in China
Time to market in China is down 30%, and material costs are reduced by 40%. The China electric architecture is being locally developed, and new competitive ADAS solutions are expected to launch in 2025 and 2026.
Global Deliveries and BEV Growth
Global deliveries increased to 2.1 million vehicles, 1.4% above the prior year's quarter. BEV deliveries grew by 59% to 217,000 units.
Strong Performance in South America
Operations in South America achieved double-digit growth, with a strong increase in Argentina where volumes more than doubled.
Financial Services Division Success
The Financial Services division recorded an operating result of €1.1 billion, a 19% year-over-year increase.
Negative Updates
Operating Margin Decline
Operating result fell by 37% to €2.9 billion, with a margin of 3.7%. This was affected by a significant increase in BEV shares leading to margin dilution.
Special Earnings Effects and Restructuring Costs
Special earnings effects totaled €1.1 billion, including €0.6 billion for potential CO2 penalties, €0.4 billion restructuring costs at Cariad and Audi, and €150 million related to the diesel issue.
Challenges in China
Deliveries in China fell by 7% to about 644,000 vehicles, and the proportionate operating result of joint ventures was a third below the prior year.
Cash Flow and Liquidity Concerns
Net cash flow in the Automotive Division was negative €0.8 billion, impacted by restructuring cash outflows and M&A expenses.
Tariff and Regulatory Challenges
Uncertainty regarding the impact of new tariffs and CO2 regulations, with potential effects not fully assessed in the current guidance.
Company Guidance
During the Volkswagen AG Q1 2025 Conference Call, the company provided guidance indicating a mixed start to the year, highlighting a 3% increase in sales revenue and a 1.4% rise in global deliveries to 2.1 million vehicles. The BEV share rose to 10% globally and 19% in Western Europe, with order intake in Western Europe up 30%. Volkswagen faced challenges with a 37% decrease in operating results to €2.9 billion and a margin of 3.7%, impacted by special effects totaling €1.1 billion, including CO2 regulation provisions and restructuring costs. The financial outlook for 2025 remains optimistic, expecting sales revenue growth of up to 5%, an operating return on sales between 5.5% and 6.5%, and automotive net cash flow in the range of €2 billion to €5 billion. However, the guidance is provided before considering the impact of potential tariffs, which could significantly affect financials.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.