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Volkswagen
(OTC:VWAPY)
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Rating:54Neutral
Price Target:
$8.50
▲(4.55% Upside)
Action:Reiterated
Date:07/25/26
The score is held back primarily by weakened profitability and persistently negative free cash flow, alongside a bearish technical setup (below key moving averages with negative MACD). These are partially offset by inexpensive valuation (low P/E and high dividend yield) and a mixed earnings-call outlook featuring strong liquidity/cash flow guidance and improving BEV demand, but with material China and restructuring execution risks.
Positive Factors
BEV Order Momentum
A 57% YoY increase in the BEV order book and 31% share in Europe demonstrates structural demand for Volkswagen’s EV lineup. Large early orders for entry BEVs indicate successful product-market fit that supports long-term revenue growth, platform scale benefits and improved mix as EV adoption expands.
Negative Factors
Negative Free Cash Flow
Persistent negative free cash flow (~-€6bn TTM) after investment indicates structural cash conversion weakness. Over time this limits reinvestment capacity, forces asset disposals or higher leverage, and constrains the firm’s ability to sustainably fund capex, EV investments and shareholder returns without crystalizing further balance-sheet changes.
Read all positive and negative factors
Positive Factors
Negative Factors
BEV Order Momentum
A 57% YoY increase in the BEV order book and 31% share in Europe demonstrates structural demand for Volkswagen’s EV lineup. Large early orders for entry BEVs indicate successful product-market fit that supports long-term revenue growth, platform scale benefits and improved mix as EV adoption expands.
Read all positive factors
Volkswagen (VWAPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.59B
Dividend Yield7.06%
Average Volume (3M)9.05K
Price to Earnings (P/E)7.1
Beta (1Y)0.78
Revenue Growth6.37%
EPS Growth-32.64%
CountryUS
Employees662,942
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.00
Shares Outstanding2,062,050,000
10 Day Avg. Volume7,841
30 Day Avg. Volume9,055
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.30
Price to Sales (P/S)0.17
P/FCF Ratio-5.75
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.05
Revenue Forecast (FY)$368.12B
Volkswagen Business Overview & Revenue Model
Company Description
Volkswagen AG is a prominent global automotive group that primarily designs, produces, and distributes vehicles across Europe, North America, South America, and the Asia-Pacific regions. The conglomerate's operations are diversified across four ke...
How the Company Makes Money
Volkswagen primarily makes money through (1) selling vehicles and (2) providing automotive-related financial services, with additional contributions from parts, service, and software/digital offerings.
1) Vehicle sales (Automotive segment)
- New ...
Volkswagen Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
Mixed/Neutral — The call highlights tangible operational and financial strengths: stable group revenue (EUR 158bn), strong cash generation (automotive net cash flow EUR 3.2bn), a rapidly growing BEV order book (+57% YoY) and concrete portfolio actions (Everllence sale ~EUR 7.4bn). At the same time, significant structural challenges persist: a severe China market downturn, sub‑target margins (operating margin 3.8% H1), large negative price/mix and volume impacts, a substantial SG&A/overhead gap (≈30% versus peers) and the need for major capacity and workforce adjustments. Management retained its full‑year guidance but launched an ambitious Group Target Picture 2030 that requires deep, structural change. Overall, positives (cash, BEV demand, portfolio moves) are balanced by material execution and market risks that require rapid implementation of the announced measures.Positive Updates
Strong BEV Order Momentum
BEV order book increased 57% year‑on‑year to ~330,000 vehicles; BEVs now account for 31% of the European order book (up from 22% at year‑end 2025). New entry‑level BEV family (ID.Polo, Skoda Epiq, CUPRA Raval, ID.Cross) generated more than 70,000 orders within weeks of launch, underpinning future BEV growth and market share gains in Europe.
Negative Updates
Sharp Downturn in China Market and Weak China Deliveries
China market declined ~20% in H1; Volkswagen Group China deliveries fell ~26% in H1 (‑37% in Q2). China JV proportionate operating profit was only EUR 184 million in H1. Weak consumer sentiment, end of subsidies and intense local competition are major headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong BEV Order Momentum
BEV order book increased 57% year‑on‑year to ~330,000 vehicles; BEVs now account for 31% of the European order book (up from 22% at year‑end 2025). New entry‑level BEV family (ID.Polo, Skoda Epiq, CUPRA Raval, ID.Cross) generated more than 70,000 orders within weeks of launch, underpinning future BEV growth and market share gains in Europe.
Read all positive updates
Company Guidance
Guidance summary: For full-year 2026 Volkswagen now expects sales revenue roughly 3% below 2025, an operating return on sales (operating margin) of 4.0–5.5%, automotive net cash flow of EUR 3–6 billion and group net liquidity of about EUR 32–34 billion. That outlook sits against H1 results of EUR 158 billion sales revenue, operating profit EUR 5.9 billion (3.8% margin; 4.3% excl. special effects), automotive net cash flow EUR 3.2 billion, deliveries 4.1 million (‑6%), order intake 2.1 million and an order book ~1.1 million vehicles (BEV order book 330,000, +57%; BEV = 31% of the European order book). Looking to 2030 the Group target picture sets medium‑term targets of an 8–10% group operating margin, automotive cash conversion >60%, an overhead cost ratio of ~12% and an investment ratio of ~9%; execution measures include cutting overheads by ~EUR 11 billion, trimming the model lineup by up to 50%, reducing equipment options up to 75% (parts complexity cuts up to 90% for some items), aligning capacity to ~9 million units (target breakeven <8m), further capacity reductions being discussed (e.g., >500k in China and Europe) and additional workforce reductions on the order of ~50,000; expected Everllence sale proceeds are ~EUR 7.4 billion.Volkswagen Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
61
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 308.94B | 309.21B | 324.65B | 322.28B | 279.05B | 250.20B |
| Gross Profit | 67.86B | 70.06B | 59.47B | 60.98B | 52.18B | 47.24B |
| EBITDA | 49.13B | 46.57B | 51.60B | 50.74B | 50.01B | 46.69B |
| Net Income | 5.50B | 7.03B | 11.35B | 16.53B | 15.46B | 15.38B |
Balance Sheet | ||||||
| Total Assets | 669.35B | 665.51B | 632.90B | 600.34B | 564.77B | 528.61B |
| Cash, Cash Equivalents and Short-Term Investments | 72.62B | 68.29B | 73.45B | 50.91B | 70.77B | 66.88B |
| Total Debt | 198.28B | 278.86B | 196.52B | 193.97B | 178.44B | 183.37B |
| Total Liabilities | 466.89B | 476.81B | 436.17B | 410.43B | 386.44B | 382.45B |
| Stockholders Equity | 187.72B | 173.93B | 182.29B | 175.69B | 165.38B | 144.45B |
Cash Flow | ||||||
| Free Cash Flow | -6.01B | -8.97B | -10.29B | -6.44B | 5.83B | 20.14B |
| Operating Cash Flow | 17.38B | 14.42B | 17.15B | 19.36B | 28.50B | 38.63B |
| Investing Cash Flow | -27.05B | -26.06B | -31.57B | -19.82B | -41.82B | -26.13B |
| Financing Cash Flow | 15.17B | 11.11B | 11.14B | 16.01B | 4.22B | -7.75B |
Volkswagen Technical Analysis
Negative
8.13
Price Trends
8.60
Negative
9.26
Negative
10.19
Negative
Market Momentum
<0.01
Negative
47.81
Neutral
65.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWAPY, the sentiment is Negative. The current price of 8.13 is below the 20-day moving average (MA) of 8.65, below the 50-day MA of 8.60, and below the 200-day MA of 10.19, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VWAPY.
Volkswagen Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $232.84B | 8.85 | 11.67% | 3.38% | 3.88% | 4.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.38T | 295.72 | 4.58% | ― | 11.75% | -37.64% | |
59 Neutral | $76.32B | 43.49 | 3.04% | 0.80% | -1.11% | -67.59% | |
54 Neutral | $43.59B | 7.06 | 3.18% | 7.42% | 6.37% | -32.64% | |
54 Neutral | $55.55B | -7.48 | -18.90% | 4.18% | 1.47% | -315.47% | |
51 Neutral | $42.79B | -44.14 | -1.40% | 4.73% | 0.81% | -128.78% |
* Consumer Cyclical Sector Average
VWAPY
Volkswagen
8.55
-2.82
-24.79%
F
Ford Motor
13.95
2.64
23.32%
GM
General Motors
85.81
27.54
47.27%
HMC
Honda Motor Company
31.80
-1.60
-4.80%
TSLA
Tesla
350.25
-1.42
-0.40%
TM
Toyota Motor
192.95
-4.40
-2.23%
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.